One New Featured Long Position And Three Stocks I Am Adding To My Existing Featured Long Positions For Tuesday’s Stock Market Session

For a superiorly bullish day there sure are a lot of questions I have after today’s session. First off, since most of you don’t know what a real bull market looks like when it is ready I will tell you. It doesn’t look like this! When real bull markets start you get a lot of stocks with great fundamentals breaking out of sound bases immediately and you get a lot of accumulation in the indexes. We have neither. Friday produced only two brand new Featured quality stocks and today only produced one that I want to go long. Day one and day two of March 2003 produced 13 stocks I went long on those two days (including 9 I added to). We don’t have this kind of strength now and the leadership is coming from Transportation-Rail, Transportation-Truck, Auto Parts, Pollution Control, Small Regional Banks, Savings&Loans, and other crap sectors that do not lead new exciting long bull markets. This so far looks nothing more than a bear market bounce. Another helpful confirmation of that is that it appears all of us technicians see the same thing as it seems like everyone is long my favorite new long BRKR. Knowing that Dan, Alan, and James are now all long this stock from RM.com, I think it is a clear sign that we are all looking for the same hot charts and due to the fact that there is so little out there we all see the same thing. Well, hopefully we are all very smart traders and are rewarded but the fact we are all buying the “what must be the only” nice chart out there might be the death kiss for this stock. Until we get another follow-through day to the DJIA follow-through day or we start getting BRKR type chart patterns everywhere (like they were before, on, and after the March 2003 FTD) there is no way I will be getting long with 200% to 400% of my capital. My capital is still resting and waiting in cash for that proper time when I can start loading up again.

new Featured long position: MANT

MANT is bouncing off the 50 day moving average and breaking out to a new 52-week high, on extremely strong volume. This is a two-day chart as it shows the pattern a little bit better as the one day is a bit wild intraday. This stock started to right itself out in July to August when the stock bounced on very heavy volume and green BOP. That led to a kind of wild uptrend that is nice and round when it does base out but some bases are deep within the trend. Still the stock never closed below the 200 DMA and the pullbacks always came on low volume that were followed by heavy volume support at the lows. The bounce on Thursday on extremely strong volume with BOP going green caught the attention of one quiet (yet one of the best; coincidence?) subscriber who alerted me to it. Well, like always, he is right and today’s very strong confirmation move on very strong volume with BOP increasing to a higher green makes it a great place to get long. The close was above the open in late February which now puts the stock firmly into all-time high ground. This isn’t the prettiest chart but it is very strong and the fundamentals are excellent. EPS growth has been 13, 24, and 36% the past three quarters, sales growth has been 21, 35, and 45% the past three quarters, estimates for 08 and 09 are for YOY gains of 24% and 12% respectively. Mutual fund growth has grown from 101 funds to 109 in the most recent quarter, signaling that the big boys are gaining an interest. Cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.

adding to existing Featured long positions: BKE BRKR FEED

BKE is breaking out of this base on base pattern, closing at the HOD, on very strong volume. This stock has been beautiful since the January lows as it has rallied on very strong volume and green to max green BOP since those lows. The stock short-term topped on very strong volume in February and since has entered a base that has been loaded with very strong accumulation as the stock appears to be under some heavy demand. The breakout today combined with Thursday’s move was on extremely huge volume unlike anything seen since 1999. The very strong accumulation, green to max green BOP, and very bullish intraday price action is very very nice. I really like BKE’s chart and fundamentals. The fundamentals are very strong, with EPS up between 7% and 73% the past six quarters, sales up 4% to 21% the past six quarters, a ROE of 19%, and EPS estimates for gains of 7% and 9% in ‘09 and ‘10. Mutual fund ownership has gone from 63 to 74 funds the past four quarters, showing that the big boys are gaining an interest in this story, which is why management already has a 56% cut. Cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.

BRKR is bouncing off the recent support and putting in a bullish intraday reversal, on very strong volume. This chart wasn’t that nice until October when the stock started moving higher on a very large surge in volume and green BOP. That uptrend really took off at the start of December with a couple of very strong days that had the stock looking like it was going to be off to the moon. Sadly, the stock reversed lower but found support right on the 200 DMA. That low volume downtrend then became this very high volume uptrend from February to March. A handle was made on lower volume while BOP remained green to max green. That wonderful base has led to today’s breakout, on strong volume, with the RS line moving to a new high, confirms that this stock is ready to rock. The fundamentals are getting much better with EPS up 50% and 89% the past two quarters, sales up between 16% to 35% the past six quarters, along with mutual funds sponsorship growing from 65 to 73 to 81 the past three quarters. EPS estimates for 08 and 09 are for YOY gains of 87% and 26% respectively. Management also owns 39% of the stock, showing their confidence in their company. Cut your final loss with a close below the 13.51 level, if the stock does not move higher immediately.

FEED is bouncing off the March pivot point area’s support, near the 50 day moving average, on strong volume. This stock has been beautiful since October of last year when it moved higher on very strong volume and max green BOP. After a very deep base, it started moving higher again in January on strong volume and green BOP. The most recent pullback has come with some noise but the tail Thursday and the bullish pop today is clear accumulation. This is a very pretty chart but the BOP and RS line are going the wrong way which makes me a little nervous. However, easing that nervousness is its fundamentals. EPS has grown 200%, 400%, 167%, and 999% the past four quarters, sales have grown 138%, 230%, 489%, and 419% the past four quarters, the ROE is a POWRFUL 58%!!, and EPS yoy etimates for 08 and 09 are for gains of 284% and 31% respectively. There are now two mutual funds in this stock but I would assume there are going to be a lot more soon. Cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.