There was only one long candidate that was even good enough to consider for a long and I am taking it as it is one of my best looking charts right now. Not only that, the fundamentals have been incredible the EPS growth the past three quarters have been fantastic to along with the spectacular sales growth the past eight quarters. The great fundamentals, amazing EPS estimates for 08 and 09, extremely green chart, and very hot industry group make this a great stock to add additional shares to even if the #1 stock in its industry group is looking much better than MON and DAR (#2 and #3). Usually, you want to see all the leaders making big gains without any obvious selling hitting them. Well FEED is the only clean and green chart left as DAR and MON have seen a few weeks of heavy volume selling. Besides the 40 longs that I have that represent 20% of my portfolio (4 make up 12% of the 20%), I am sitting in 40 shorts that make up another 10% of my account and the other 70% is in the BEST investment you can be in, right now, in this psychotic market that hasn’t gone anywhere since mid-January…CASH BABY!!! Sweet, sweet, sweet cash. I tell you what folks nothing feels better than being in complete sync with the market. Though I may not be making any real money (NOBODY IS, btw and it is the first time in twelve years!!!!! over a six-month period), it still feels great knowing that the market is doing exactly what the charts are hinting that it should be doing. Right now, they are all still saying that CASH IS KING! Aloha and I will see you in the chat room.
adding to existing speculative Featured long position: FEED
FEED is breaking out of an odd-shaped cup pattern that almost resembles a saucer with handle pattern, on very 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 and the BOP and RS line are doing much better than the first time I went long. BOP is now trying to build back up to max green BOP and the RS line is leading the stock to new recent highs. Helping make the chart look even more attractive is the fact that the fundamentals are really starting to fly. 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 POWERFUL 58%!!, and EPS YOY estimates 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 first loss with a close below the 12.25 level and your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
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