Sample Premium Stock Watch Report - February 27th, 2007
Once again, this particular Stock Watch report features an abundance of Quick Strike Profit plays. I'm just not seeing great core long plays right now worth getting into for the next several weeks. Admittedly, I'm fully prepared for a minor market meltdown and want to continue playing the high profit potential swing trades as well as increase my exposure on the short side. In addition to the several QSP candidates I've included one short play which I think looks outstanding. I'll be featuring a few more shorts in the coming days. Several are emerging.
I do have one core long play for you….
BTJ is one of the highest rated break outs in the database but doesn't currently appear in the Break Out watch list because its out of the 5% from pivot range. Yeah, it's a bit extended but I'd be looking at any pull back as a great opportunity to get into the top oil play currently in the database.
.. and one short play
This has to be one of the ugliest charts I've seen in quite some time! That's OK though because we're playing the short side here. You see the massive sell off with record volume in mid February, in which the stock took out two key support levels (50 and 200 day moving averages). In the latter half of February, it worked its way back to what is now resistance at the 200 day moving average. It looks to me like its run out of room to run and is on its way back down. I may initiate a short in this one for the Model Portfolio this morning.
Now for the Quick Strike Profit plays
A few members have requested more of these explosive plays recently so I've begun to featuring them a bit more. That doesn't mean the focus of this service will change which is to invest in the best companies in terms of technicals AND fundamentals. Certain market conditions call for certain market strategies and I continue to believe that locking in profits much quicker right now is the best strategy. The QSP trades provide a great way to give your portfolio a quick boost as you've seen with recent plays CSIQ, NEXC, MSI, HOTJ, EVOL and APAC. I sent a QSP trade preview yesterday morning and will re-post it below. I should mention that after yesterday's trading action, ALTH and SGMO aren't as close to break outs as I thought, so I won't detail the charts in this report.
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I won't be releasing the detailed Stock Watch with annotated charts until
tonight or tomorrow morning, but wanted to give you heads up on the Quick Strike
Profit plays I'll be highlighting. Of course, you can get the top core break
out plays by taking a look at the first page of the Breakout Watch at http://selfinvestors.com/members/highlightsNEW.php?crit=nobreakout
and the Hot Stock screen at http://selfinvestors.com/members/highlightsNEW.php?crit=hotstocks.
QSP Preview:
ALTH: broke out from short base in early Feb and has consolidated those gains nicely. It's nearing support of the 50 day moving and may be ready to run in a big again soon.
APAC: Strong uptrend for last few months with big surge in demand. Getting ready to move again and could move big within the next couple days.
EVOL: forming bullish triangle as volume dries up, look for break from this pattern
SGMO: almost identical pattern to ALTH - but I like SGMO a bit better with the break out to a new multi year high. Consolidating a recent run up and sell volume is waning. Getting ready to run again.
TGX: more of a flag pattern than a bullish triangle. Look for break from this pattern somewhere in the 5.10 range.
URZ: a technical play on the surge in uranium miners and a stock I featured in my report on investing in advanced energy initiative a few weeks ago http://investing.typepad.com/tradingstocks/2007/02/uranium_miners_.html It broke out to all time high as volume surges. I'm waiting for a little pull back.
IONA: big break out on Friday and looks poised to run to the 9 range over the next several weeks - I'm waiting for a little pull back after Friday's big run.
Last but not least, be sure to pay attention to gold/silver plays here. There are many speculative gold plays busting out of bases. Here's a small list that I really like:
AZK, RNO, SA and HL.
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There was a reason for sending you out the preview email yesterday. I believed that a couple of these QSP plays would take off before I had a chance to get this detailed report done. APAC was one of those. The chart definitely fore casted today's move with the high volume surge on Friday. It had the momentum to move again today which it did. If it can clear 4.70, the sky is the limit.. but as usual I'll be looking to lock in a quick 20 -30% gain.
If you've been around here for some time you don't need me to tell you that this
is a picture perfect bullish triangle pattern. Bottom line - these patterns are
about as close to sure things as you can get. If you take nothing else away
from this service, burn the image of this chart into your brain and never forget
it. These patterns will make money for you as long as you continue trading.
The chart speaks for itself. I've already initiated a position on the break
from the triangle, but the second break out move would occur on a move above
2.10. After that, there is no resistance until around 3. A whopping 50% gain.
Nice.
TGX could bounce around between the short term resistance and support lines (4.35 - 4.85) for a few more days. Just set an alert around 5 and forget about it until it triggers. If the volume is there, it's profit time!
I have highlighted the uranium miners in a few different posts over at the blog recently - never did I think they would move as they have. Not after uranium has already doubled in the past year. EMU was the first uranium technical play I featured,URZ featured here is shaping up to be a good #2. It's showing a tremendous amount of demand over the past several trading days but is due for a pull back. If it pulls back to around 5 you don't want to miss it. I'll be looking to add a small position to the Model Portfolio if it does.
IONA broke out of a base last Friday, then broke out above the next level of resistance above 6 yesterday but couldn't hold it. That sets up more deterioration in the short term but might provide a great opportunity to get a good entry (which it would provide anywhere above the 50 day moving average as long as sell volume continues to wane). If it can clear yesterday's high at some point, there is no resistance until about 9.
I wanted to throw one of the gold plays I mentioned in here, RNO. It recently broke out to a new all time high with huge volume. This is extremely bullish action. I'm just waiting for a little pull back as an opportunity to initiate a position. Be sure to have a look at AZK, SA and HL as well.