Once again it was another overall lighter volume session that still produced a TON of stocks that are of high enough quality to be long. However, out of the 50 or so breakouts/bounces today there were five stocks that stuck out better than the rest. ANSS is the best stock tonight based on the fantastic EPS and sales growth to go with the four quarters of very strong mutual fund sponsorship. Overall the fundamentals combined with the weekly chart pattern make this another great Featured long candidate. I would prefer to see more volume, it bouncing right off the 50 DMA, the BOP go max green, and the price close at the HOD, but this was good enough and I will take it. REXX and VIV are both more speculative as the fundamentals are not nearly as nice but the REXX chart is really strong and the VIV chart is extremely well crafted in this most recent base but that does not mean that they are good enough to load up in. REXX is in the hot oil and gas sector and all those stocks have been doing well so I assume REXX will be no different. VIV is part of the Brazil connection that has been doing very well. Those that have been long GFA are familiar with the gains Brazil stocks have been making the past few days as this area of the market has gotten hot. ITU, BBD, GFA, and VIV are all on the move, just like China stocks like JRJC, SINA, NTES, SOHU, and CHU. PWRD is a huge disappointment. I attempted to make it a HUGE position but was only filled on 25% of my full order as ONLY my market order was executed the stock gapped and ran away. That sometimes happen and it stinks. However, the stock has a LOT of momentum and I would not mind adding another 10% of the original 100% amount I was trying to get. I am very sad I did not get my limit orders filled on OTEX and PWRD and because the limit orders were not hit on either one, I do not have a HUGE position in PWRD like I should. PRAY for a handle that last AT LEAST five days for PWRD and OTEX as I still want to load up on these two possible Monster Stocks. IMCL is another gem for Friday’s market session. This has some problems too that will prevent me from loading up on this add. IMCL’s fundies are not good, the stock is not bouncing on huge volume (just strong volume), and BOP is actually decreasing, though it is still green, and it would be nice to see the RS line hitting a new high before price. If all of this was occurring, along with the beautiful daily price action in the chart, I would be adding a lot more than what I will be. So my only large long is ANSS and I sure do not like it as a HUGE position. But as a good size position, for a stock with poor fundies, this is a great candidate. So they are not great but they are far from horrible. If you are a newbie, you should stay away from REXX and VIV as they have some speculative traits that make them poor longs for newbies.
new Featured long position: ANSS
ANSS is breaking out of this ascending base pattern, after bouncing off the 50 and 200 day moving average, on very strong volume. Cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
new speculative long positions: VIV REXX
VIV is breaking out to a new 52-week high and bouncing off the 50 day moving average, on very strong volume (best viewed on 2-day chart). Cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
REXX is bouncing off support and breaking out of this two-week tight pattern, on very strong volume. Cut your final loss with a close below the 20.90 level, if the stock does not move higher immediately.
adding to existing Featured long position: PWRD
PWRD is breaking out to a new 2008 closing high, on very strong volume. Cut your final loss with a close below the 50 day moving average or the 28.92 level, if the stock does not move higher immediately.
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adding to existing speculative long position: IMCL
IMCL is bouncing off support near the 50 day moving average, and nearing a breakout to a new 52-week high, in this long saucer with handle pattern, on strong volume. Cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
Had entered a limit-sell order on GFA at 48.50 last night on the possibility that a positive payrolls report could produce a gap higher — could not have conceived the gap to above 50 considering the already nearly 20% run in the stock this week prior to today — and my shares got taken in at the limit sell for a 25% gain from my purchases on Monday and Tuesday — happy with the return but I agree with your assessment that this position will likely move much higher if this new bull keeps its legs — any thoughts on the now frothy move in this position — thinking we have to at least fill that gap in the coming days — that would seem like an ideal re-entry point but next week’s earnings report could mix things up
GFA is reporting earnings on Monday. History of stocks running up big into earnings isn’t that good, so you might well get a chance to re-load at lower levels. That said, this stock looks pretty nice fundamentally. Earnings are growing nicely, Brazil’s economy is taking off, and the upgrade in Brazil’s sovereign credit rating should help to provide better credit availability to both GFA and its customers. On next year’s numbers it’s cheap.
Fundamentals look very good — I noticed vary reports regarding earnings — I think IBD has 5/8 but some of the internet sites have 5/5 — do they release in the a.m. or p.m.
5/5, after the close according to Yahoo: http://biz.yahoo.com/research/earncal/20080505.html
I’m still baffled at GTLS. All the earnings info looked positive then they got killed? WTF? What did I miss? Oh well, GFA and PWRD made up for it.
Jamey, who cares. All you need to know is it is not as nice as PWRD and GFA.
I don’t like the action but trust me, for my health, and so I do not get analysis-paralysis, I do my best to never really care. If a stock blast off and i am already long…sure I’ll check out the news. But still it is the “action” and not the “reason” that makes my living.
bought back into a third of my position in GFA this morning at the IBD buy point of 42.85 — looks like the stock has support — considering the run last week that took out my limit sell I’m very pleased to get back in partially at the breakout point and let it see it prove itself a bit more before loading up again — wouldn’t mind being back all in at 45
Glad I let it prove itself — selling today in some of the recent leaders was gruesome –