Until we flash a true, high quality, strong, and obvious follow-through day on one of the major market averages there is absolutely no way I can tell any of you to get out there and buy stocks. The hottest most incredibly strong technical patterns are simply not showing up and when they do show up they are failing. I assume that as soon as we get a strong follow-through day, like almost every other time in the last twelve years of my investing life and past 125 years of market history, we will have more of my ‘past big winners’ show up. There is one important fact that I want to make sure that a reader was asking me why the few winners (PDO was up 370% in under 3 months, but how quickly we forget) I find our not as good as they used to be is because not maybe the VIX is bad (which is the real reason) and maybe because I am losing my “touch.” Well “old” pal, if that was the case these statistics would be transposed and the new highs would be killing the past old highs instead stock simply do not run any more. Do you know how many stocks have been up 100% so far in 2008? ONLY !!!65!!! Do you know how many were up 100% by this time in 2003? !!!444, that still exist!!! (there were easily over 450-455 100% gainers by this time, in our LAST FRESH BULL MARKET FROM A SEVERE SELL OFF back in 2003. So for the one or two of you who are secretly wondering why I can not find all my 1,000% winners…it is because they do not exist right now. It isn’t me, it is the market. If we had 450 stocks hitting new highs there would be a LOT MORE PDO type stocks and DGLY’s would NOT fail. For the new longs you see tonight, LIKE I SAID, without us having a true quality follow-through day don’t you dare make any of these positions large “make-or-break” positions. If you have some money on the side and you want to play with it in some of these high quality 50 DMA/breakout max green BOP plays in speculative positions make WONDERFUL plays in decent to raging bull markets but unless all of them work like they have been recently (obviously a joke) I would be careful and wait for my Follow-Through Day before going really crazy with my 50 DMA/breakout max green BOP setups. Now Featured quality longs are always more preferred for the longs in these kind of choppy markets.
new Featured long position: MFLX
MFLX is pulling back in a very bullish tight three-week-tight price pattern. This comes with the stock having green BOP during the pullback and on the strong move right before the very calm price pullback. I would like this a lot better if it was right at the 50 DMA and the BOP was max green. But we can’t get anything perfect anymore. Oh well, I am patient. Cut your final loss with a close below the 50 day moving average or the 25.39 level, if the stock does not move higher immediately.
new speculative Featured long position: SLH
SLH is bouncing off support near the 50 day moving average and breaking out to all-time high, on strong volume. This stock has been too volatile for me personally but if the 7/1 breakout and Friday’s move don’t work, I don’t know what ever will. 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: ORIT ZBB
ORIT is bouncing off the 50 day moving average and breaking out from a very flat and tight and nice base. The green to max green BOP and rising Relative Strength line help make this chart hot. Too bad the fundamentals and industry group is lame. Cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
ZBB is bouncing off recent support, near the 50 day moving average, in this base on base pattern, on very strong volume. Weekly looks much better than the daily as it cleans it up. However, there is nothing clean about the nasty fundamentals and a heavy reminder of this being a chart ONLY play is needed.
adding to my existing Featured long positions: IXYS RBCAA WHG
IXYS is bouncing off recent support, near the 50 day moving average, and nearing a breakout to a new 52-week high, on average volume. This chart at first glance looks real good. However, if it is going to be real good it has plenty of time to make a LONGER and FLATTER base where the BOP can move from high green to MAX green. Along the way I would love to see some big spikes of volume with price higher while the rest of the base was completely dead silent. If I could get a possible quiet long base with max green and strong price spikes, I might fall in love with this stock. However, in this market, NO WAY! LOL. It will just be a normal position. If it wants to get “HOT,” it has weeks and weeks of work to do yet. I demand perfect AND A FOLLOW-THROUGH DAY before I will get too involved with any “beautiful” stock again. Hopefully, the stock can pick up its price, if more mutual funds join in. The EPS is starting to REALLY GROW in the most recent quarter and estimates are looking good for the intermediate term future. Now the base just needs to be finished off. For now, cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
RBCAA is bouncing off and breaking through the 50 day moving average, on strong volume. This stock has recently performed some wild nasty fakeouts but hopefully this is the move that is for real. If not, then this stock will probably rollover pretty soon. But for now th close at the HOD with BOP closing max green with higher volume signals to me this stock is looking to make new highs. If not and the stock does not rise immediately, cut your final loss with a close below the 23.31 level.
WHG is breaking out to another new high from another series of ascending bases, on very strong volume. The recent 10 days of daily candlestick price, volume, and max green BOP has really made this a very pretty chart and a stand out amongst all of these hidden financial stocks that have been in long uptrends. Cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
