Once again, we have a case where nothing is perfect and screaming “buy a lot of me.” But we do have a couple of really nice longs with one giving an excellent risk/reward setup. However, none of these stocks have perfect Featured growth and worst off every single one shows a discouraging trend of mutual fund ownership. My favorite chart tonight is ICO with that beautiful price/volume/BOP action. The problem with ICO is that it is too risky for newbies due to the poor fundamentals and too risky for experienced investors due to the potential of a big loss on a normal pullback to the 50 DMA. My next favorite is CRY, by far, as it is bouncing right off the 50 DMA on very strong volume and with BOP being green for the 17th day in-a-row. Too bad BOP, oddly, fell to a lower level today, despite the powerful bounce. That is negative divergence. That action with the RS line not showing any bullish divergence kind of kills the buzz from the very bullish price action today (opened at the LOD, closed at the HOD). CIG is a Brazilian utility company with some amazing recent fundamentals and a very well formed right side of its base in May. However, this stocks is showing mutual fund ownership falling, showing the big boys are losing interest in the stock. If they are losing interest that is a warning I should be careful too. So I will. FSYS is a very cool stock that will probably catch that “buzz momentum” with just the name of the company alone. But there is some real strong fundamental growth here too, just like CRY, but mutual fund ownership is falling from 34 to 25 funds the past 4 quarters. I don’t know about you but I do not ever like to see a stock fly higher but have mutual fund ownership plummet. Still price rules ownership and as long as it is going up I will not be afraid to take part in the fun. The last stock is way too speculative for everyone but in 2009 the EPS will turn positive in 2009 at .05 cents per share, sales growth is already over 14% to 222% the past eight quarters and plus mutual fund ownership has grown from 2 to 3 funds the past four quarters. So this stock, even though it is too dangerous for newbies and too risky to load up on for experienced investors, will probably be our best stock since a lot of accumulation and some fundamentals are working in its favor, despite it being a $1 stock. Even though none of the longs are perfect, I guess the best news might be that nothing that I am long was a complete sell.
new speculative Featured long positions: FSYS CRY CIG
FSYS is bouncing off recent support of this flat base that has already had one fakeout, on strong volume. Cut your loss with a close below the 25.37 level (post-fakeout) or the 25 level (pre-fakeout), depending on your risk tolerance, if the stock does not move higher immediately.
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CRY is bouncing off the 50 day moving average and putting in an extremely bullish intraday session, on strong volume. cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.
CIG is breaking out of a quite-volatile cup base (best viewed on weekly; looks like cup with handle on daily), on above average volume. Cut your final loss with a close below the 50 day moving average or the 21.28 level, if the stock does not move higher immediately.
new very speculative long position: SCU
SCU is bouncing off support at the pivot point area of the 5/16 breakout and putting in a very bullish intraday reversal for the second day in-a-row, on above average volume. Cut your final loss with a close below the 1.21 level, or even the 50 day moving average, if you like the chart as much as I do from the move that started on 2/26, if the stock does not move higher immediately.
adding to existing speculative long position: ICO
ICO is putting in a very bullish intraday reversal, near the 50 day moving average, after a nice low volume pullback. The green BOP that is on this chart in October and April made it a good buy when I first went long. But even though it is 43% higher than it was from the first buy on 4/10, I do like this purchase area better as the chart has a lot more HOT max green BOP on it now to make it look like a champ. Common sense, should tell you if the market collapses the odds of this stock to remain very beautiful will fall dramatically. Cut your final loss with a close below the 8.89 level, if the stock does not move higher immediately. And do not forget if you are long from April, your final cut loss is still with a close on huge volume below the 50 DMA or a close below the 200 DMA. There could be other signals but those would be the two main reasons to terminate the investment.
