New Featured swing longs: LDSH HOLX
LDSH is breaking out of a saucer with handle pattern, on very strong volume. The stock has many volume spikes in the base but all of them have the stock finishing off the lows of the days, showing support. As the end of the base wrapped up, volume dried up. As it built the right side, volume picked up again and after a week of quiet trade the stock broke out today on heavy volume. BOP has gone back to the green territory making this chart look much better than what it might have been without it. This stock has strong fundamentals to go along with this chart. EPS has been growing 82%-283% the past six quarters, and sales has been growing 25%-46% during the past eight quarters. Cut your loss w/ a close below 38.20, if the stock does not follow-through on this breakout.
HOLX is breaking out of a 10 month saucer with handle pattern, on extremely strong volume. This stock is loaded with accumulation coming off the June lows. BOP has also spent the entire time either yellow or green. The strong breakout off the 50 dma, with the surge in volume and BOP, along with the previous green BOP and accumulation make this a very pretty chart. Not only is this a great chart pattern but the fundamentals are extremely strong as well. EPS growth has been between 39%-85% the past six quarters and sales growth has been between 22%-97% the past eight quarters. Cut your loss w/ a close below the 50 dma, if the stock does not follow-through on this breakout. This stock may be too volatile for newbies.
New speculative swing longs: ARRS UBS CHTR IDP
ARRS is breaking out of a short flat base pattern and an 11-month deep cup with handle pattern, on very strong volume. This stock coming off the November reversal has seen a lot of accumulation during the January uptrend that led to a very quiet flat base. Today’s breakout from that flat base, on a surge in volume and BOP, along with the prior accumulation and green BOP on this chart make this a very pretty chart. The fundamentals are pretty strong but are slowing. EPS has dropped to 35% from 500% the past four quarters and sales have dropped to 14% from 56% five quarters ago, but they are still growing. Cut your loss w/ a close below the 13.22 level, if the stock does not follow-through immediately.
UBS is bouncing off the 50 dma and breaking out to a new closing high on above average volume. This stock is now breaking out from a proper base as the volume in this base was much quieter than the previous base it just tried to b/o from. This nice ascending pattern has been filled with a lot of accumulation and green BOP. Take that, along with today’s breakout on volume and you have a very pretty chart. However, I don’t like how BOP diverged. It shouldn’t have done that. The fundamentals are weakening from a, once strong, growth rate. EPS growth is now negative and estimates for this year have been lowered. But sales growth is still solid growing between 29%-49% the past four quarters. Cut your loss w/ a close below the 50 dma, if the stock does not follow-through immediately.
CHTR is bouncing off the 50 dma and breaking out of a cup base on cup base pattern on strong volume. After the beautiful uptrend this stock had that was full of green to max green BOP, heavy accumulation, and low volume pullbacks, this stock built a nice base on base pattern with low volume base building periods. The breakout today comes with a surge in volume and BOP going green, making this a pretty chart. Cut your loss w/ a close below the 50 dma, if the stock does not follow-through on its breakout immediately.
IDP is breaking out of a perfect flat base pattern, on very strong volume. This stock coming off the September lows has been LOADED with accumulation and green BOP (besides a blip in December) leading up to the flat base. The flat base ended with volume drying up significantly with BOP staying green and around/above the zero line; a positive development. This is a pretty chart but besides that there is nothing else. The fundamentals have slowed to negative and UGLY growth. This stock is not recommended for newbies, but if you must take it you must. Cut your loss w/ a close below the 7.05 level.
Adding to current holdings: MNTG
MNTG is bouncing off the 50 dma and breaking out above a month long flat base, on very strong volume. This pop off the moving average comes after a strong uptrend from August that was loaded with accumulation and max green BOP. The base it created leading up to this breakout was very quiet. This overall gives this chart a very nice appearance. All of that green BOP, with this chart pattern, and volume action makes this a very pretty chart. This stock is purely speculative as it has horrible fundamentals. EPS is dropping like a boulder off a cliff and sales growth is basically flat. Keep it small, if you must go long. Cut your loss w/ a close below the 50 dma, if the stock does not follow-through from this breakout immediately.
