Anyone that has been a subscriber for longer than two months knows that I am a big fan of DAR’s chart and fundamentals. Sadly, it hasn’t succeeded from any of its past breakouts (there were two the past month) it appears that the third time is the charm as the direction of the market is in its favor now. This bounce/breakout is coming right off its 50 dma and from a longer base than the move two weeks ago giving it higher odds of succeeding. The BOP is very strong and green and the price/volume action has been exceptional the past year, making this a fantastic long. My second favorite tonight is AGX with all that max green BOP all over the chart along with the solid price/volume action. This is easily one of the prettiest charts out there. The first problem with this one is that it is not bouncing directly off the 50 dma but instead a bit above it–that makes it a bit riskier. Second, the stock only averages 11,500 shares a day. That makes it way too thin to acquire a huge position. The EPS has jumped into positive ground with a 500% increase the most recent quarter and sales have grown 463% and higher the past three quarters, making this one of the most exciting stocks out there (just like its max green BOP filled chart) in the stock market universe. This is a limit order only kind of stock. Do not use market orders and do not take too much of it. SWIM’s chart isn’t the best but since the July lows the accumulation has been huge and can not be ignored–just like the EPS and sales growth the past two quarters. This has a potential to be a great stock but the technicals are not strong enough for me to load up, yet. But the weekly sure is near-perfect looking. SHEN used to be a great Featured long but the sales are going the wrong way. However, the chart is bouncing off the 50 dma perfectly on good volume giving us a safe strong trade. CCC and PSMT are two very nice looking longs that I am already a happy owner of and both have very green BOP filled charts going back for a long time giving them extremely strong looking long term charts. As long as their trend is up, that 50 dma is a great area to get CCC and PSMT again. CSIQ is by far my least favorite long but even then it is a very pretty long with max green BOP for the past three weeks straight and all that huge accumulation after the gap higher in November. All of this green all over the chart makes it too nice to pass up but with the fundamentals being horrible and this stock being volatile I am going to keep it very tiny–just for fun. DAR and AGX are my favorites. All the rest are pretty equal, minus PSMT and CSIQ which don’t really float my boat.
new Featured long position: DAR
DAR is bouncing off the 50 day moving average and nearing a breakout to a new all-time high, on strong volume. The fundamentals are great, with EPS growing between 133% and 999% the past four quarters, sales growing between 45% and 83% the past five quarters, and earnings estimates for 07 and 08 for gains of 686% and 24% respectively. Fund ownership has grown from 28 to 44 the past three quarters, showing that the smart elephants are trampling their way into this stock. Everything is going the right way in this stock-up. Cut your loss with a close below the 9.76 level, if the stock does not move higher immediately.
new speculative Featured long positions: SWIM SHEN AGX
SWIM is breaking out of a deep cup with handle pattern, on very strong volume. The fundamentals are very good, with EPS growing 118% and 258% the past two quarters, sales growing 29% 79% and 111% the past three quarters, and earnings estimates for 08 for gains of 999%. However, fund growth has fallen from 33 to 31 the past two quarters, showing that some funds are finding something wrong with this holding. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.
SHEN is bouncing off the 50 day moving average, on very strong volume. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.
AGX is bouncing off recent support near the 50 day moving average and closing at its HOD, on strong volume. The fundamentals are getting much better, with EPS growing 104% to -.18 (n/a) to 500% the past three quarters and sales growing from 25% to 35% to 471% to 463% to 521% the past five quarters (from $9 million in sales to $53 million in five quarters). Cut your first loss with a close below the 11.55 level (50% or more) and your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
new speculative long position: CSIQ
CSIQ is bouncing off recent support and nearing a breakout to a new all-time high, on very strong volume. The EPS is horrible but the sales growth has been between 99% and 447% the past seven quarters giving the stock a reason to rally besides the hype of the China, Canada, and solar momo play. Cut your first loss with a close below the 14.45 level and your final loss with a close below the 14 level, if the stock does not move higher immediately.
adding to existing speculative/former Featured long positions: CCC PSMT
CCC is breaking out over the 50 day moving average and nearing a breakout from this cup consolidation pattern, on below average volume. Cut your first loss with a close below the 13.33 level and your final loss with a close below the 12.11 level, if the stock does not move higher immediately.
PSMT is bouncing off the 50 day moving average and nearing a breakout to a new 52-week high, on strong volume. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.
