The following table is a screenshot of a portion of the SelfInvestors.com "Hot Stocks" screen. SelfInvestors Hot Stocks are stocks showing big demand and within a buyable range (5% from breakout), near a breakout or within 5% of the 50 day moving average.
(see the larger image here)
Here’s a rundown of the charts….. its important to remember that just because a stock is technically in a "buyable range", doesn’t mean that it’s an automatic buy. Always consult the chart before making a buy or sell decision. You want to give yourself the best chance of success. If a stock doesn’t provide you with a great entry point, move on to the next one. There are too many opportunities to accept anything less than a great entry point.
ICON is showing great demand in its chart which is characterized by high volume buying and low volume selling. Additionally, price action is tight throughout which is always a positive. Wide, loose price action indicates too many are watching the stock or too much manipulation. I tend to avoid these kinds of stocks. ICON broke out of a much larger base late last year and recently broke out from a much shorter base recently as buy volume continues to surge higher. Due to the shortness of the base and the fact it didn’t form a handle I would not have touched this one after it moved to a new all time high. Instead, I want to see it consolidate quietly back to the point of the breakout around 14.50 or so.
SHFL is a very good example of a stock within a buy range, but not a great buy right at this moment. The stock has run up more than 50% in just a couple weeks and needs time to digest those gains. Why not be patient and see if a better buy point is offered? Maybe it will return to the breakout point around 34.
VIVO recently broke out from a short base around 26 and has been bouncing around between that breakout point and the all time high around 28. There are a couple of ways that I would play this thing.. one way is to buy as close to the pivot as possible around 26. Another option is to wait patiently and see if the stock forms another handle around the highs .. look for a strong breakout above all time highs at 28 as an opportunity.
While SCSS has had a tremendous run over the past several months, the technical action remains very bullish. The stock recently broke out from a flat base and has been treading quietly since. Again, I’d play this a couple ways if the original breakout was missed. I could wait for a pull back to the breakout point (assume it’s an orderly pull back) to around 38 or wait for a break out from the current consolidation above 40 (although I wouldn’t be initiating large position up at these levels).
SWSI looks like a real promising oil play. Again, I don’t like initiating positions in stocks that break out without first forming some kind of handle as is the case here. I’m looking for a quiet return to around 30 as an opportunity to possibly initiate a position.
Same situation here as with SWSI.. break out without handle. I’m wating for a return to the break out point around 42.50.
Another break out without a handle here too with a nice high volume gap up (very bullish action). Again, I would look to play this two ways, depeding on what the stock gave me. One way is too pick up shares on a return to the breakout point around 41 or you could pick up a small position on a break out from current consolidation. I don’t think this drops to 41 but continues to consolidate in a bullish pennant like formation and breaks out from there. Certainly one to keep an eye on.
Nothing too fancy here.. just looking for a high volume move above the handle.
STRL has carved out a base that is a bit on the sloppy side in the left side but the action has been impressive recently with buy volume picking up. It’s currently carving out a handle formation. Should the stock blow through 25 with volume, it may offer a nice opportunity.
RIMM, the former high flyer held down by legal troubles is beginning to emerge again and is well positioned for a strong breakout.
I’m not a big fan of the insurance stocks, but TWGP is one of the best and recently made another all time high. Having never formed a significant handle during its runup over the past month, it is now digesting those gains in a quiet, constructive manner.
When I drew up this chart last night I though the stock would settle in aroun 20 before moving higher, but today the stock is getting hit a bit hard and appears headed for the next level of support around the 50 day moving average (18.50 – 19). The action in this stock is a bit sloppier than I prefer, but CLRK is an outstanding company in an emerging field (LED lighting).. one to keep an eye on.