EURX and OFI look like there is a bull market out there. Too bad these are the two exceptions to the norm. These stocks are showing some extremely strong relative strength in a bull market and both look to be strong longs. My only problem with EURX is it is a bit volatile compared to something like OFI. My problem with OFI is that we have already had a better entry to get long. So this is a pyramid buy and should be smaller than the first long we took. Still both charts look sharp compared to the overall market. Let’s see how long that holds up in this environment. The other good news was that the selling came on lower volume today. That is a start.
new speculative long position: EURX
EURX is bouncing off support right at the pivot point area of the July breakout, on strong volume. This stock might be a bit extended here so waiting for a small pullback on lower volume would probably be the smarter way to tackle this stock. Still this is a beauty with the BOP, volume, and price action the past month. This is a much happier market development than the overall market and hopefully this divergence can keep up. Cut your final loss with a close below the 16.89 level, if the stock does not move higher immediately.
adding to existing speculative Featured long position: OFI
OFI is breaking out to a new all-time high, after bouncing off the 50 day moving average, on extremely strong volume. This is probably one of the strongest chart patterns out there right now which means they will probably kill it tomorrow. However, for now, this is about as pretty as it gets. The only thing that could help this pattern out is that it needs max green BOP here and before today’s pop. However, still, overall, this is a very pretty chart and I think a small long here 100-1000 shares make for a good trade in a stock that is this strong in a market that is that bad. Since I think one day we will all be forced to grow our own food, I naturally like this stock. Hopefully, I am wrong on the food prediction. But for now I know I want to be long this strong chart pattern and solid stock with strong fundamentals. Cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
