adding to existing Featured swing long: SPSS
SPSS is breaking out of a six week cup with handle pattern, on average volume. Even though there is no volume on this breakout, with BOP at max green and this nice of a chart pattern, there should be some volume real soon with the stock continuing to follow-through off of yesterday’s bounce. The stock, itself, has been in a nice ascending uptrend since the August lows, filled with accumulation. The stock blasted out of its base in February on a huge breakaway gap on a big surge in volume and with BOP going green. Since then it created another base. This one was created on low volume and BOP went max green as the base started to climb up the right side. The stock has now made a handle on quiet trade with BOP still at max green. Today’s move is the start of a breakout from this handle area. This chart is very pretty, after the February gap up. The fundamentals are very strong, with EPS accelerating the past two quarters and sales growth between 1% and 14% the past eight quarters. Estimates are for a 22% increase in earnings this year and a 19% increase next year. If this stock is not ready to breakout and does not follow-through immediately, cut your first loss with a close below the 35.04 area and your final loss with a close below the 50 day moving average.
adding to existing speculative Featured swing long: TTG
TTG is starting to breakout from a month long flat base, on very strong volume. This stock appears ready to start another move that it has been a part of since late 2005. The stock started the uptrend on a huge surge in accumulation and with BOP going max green, in early 2006. Then the stock built a very long base that had a failed breakout in the middle that led to the October 2006 move. That move off the 50 and 200 dma led to a breakout on huge volume and max green BOP that then led to a nice steady uptrend lasting until February. The uptrend was loaded with tons of accumulation and max green BOP, along with very low volume pullbacks. That then led to this current base, where BOP held the zero line and volume dried up. Today’s bounce/start of a breakout move off of support, along with all the green on this chart, makes this a pretty stock to go long. The fundamentals are clearly getting better, with the EPS growing 124% and 300% the last two quarters and sales growing between 8% and 43% the past five quarters. 2007 YOY estimates are expected to rise 233% this year, with 2008 earnings rising 140%. The only thing about this stock is that it is under $10 and trades under 100k a day (55k average). Therefore, if you are a brand new emotional investor, I still have to recommend staying away. For the rest of us, cut your loss with a close below the 50 dma, if the stock does not follow-through immediately.
