The NH-NL Ratio did close in positive territory for the first time in more than a month last week but it wasn’t impressive at +5%. The ratio was above 30% early in the week but almost turned negative after Friday’s disappointing total. Monday’s NH-NL ratio was also negative so we are still in the consolidation phase for the markets. However, the stocks below were higher yesterday with interesting chart patterns and solid fundamentals.
Strong Sister Stocks:
SPWR, FDG, YGE, JASO, ANR, FSLR, LDK
Interesting Stocks with Increasing Fund Sponsorship:
- NMX – 129.02, the stock was up 4.63% on volume 31% larger than the 50-d average. It crossed back above the 50-d m.a. for the first time in several weeks. It needs to make a higher high to snap the recent sideways trend that is sloping downward over time. Originally featured in the December post: Stock Predictions for 2007 – Oh NO! A triple top breakout will confirm on a move above $130.
- SNCR – 34.63, the stock, listed in Fresh IPO Ideas at $27.88 on 6/13/07, is forming an eight week sideways base while playing see-saw on the 50-d m.a. The ideal buy is would be at the 200-d m.a. (a gap-up from April never filled near $20).
- OMPI – 17.31, an interesting young stock that is attempting to build a base above $15 per share. I wouldn’t touch this one until it challenged all-time highs above $20.26.
Interesting Stocks: Recent IPOs:
- VMW – 76.76, the stock was up 10.45% on one of the largest daily volume days since its debut. Today’s move shot the stock into new all-time high territory. The stock is up 20% over the past four days.
- LDK – 58.13, the stock is past all ideal entry points but is one to keep any eye on based on the excellent up-trending strength. The ideal entry would be a pullback to the 50-d m.a. A shorter term entry could be on a slight pullback near $50. This is one to watch for a future $60-$100 run.
- EHTH – 23.44, an interesting cup with handle breakout today with a move above $22.60 (pivot point). The current move could take the stock to the $26 area where a new setup area could form (near all-time highs).
- FSLR – 100.42, the stock is consolidating after the super run from $20 to $119 over the past nine months. FSLR is related to LDK in this category.
- TTPY – 25.40, the young IPO stock is currently forming a seven week pattern will all-time highs above $27.58. A move above $28 is positive on the P&F chart. The ideal buy is along the 50-d m.a. (currently above $24).
Detailed descriptions of each screen can be found through this link:
Fundamental Screens and Scans
This is NOT a buy list, please buy and sell at your own risk!
EHTH is NOT a cup with handle. You can not have a cup with handle form at the bottom of a chart. For a correct cup with handle you MUST have a previous 20% or more runup in price. Cup with handles that form at the bottom of a chart are NOT cup with handles. They are simply just trying to get off the bottom. Only AFTER a 20% runup can you then find a cup with handle. ONLY stocks in uptrends can form PROPER cup with handles. Cup with handles DO NOT (if you want to be technically correct–Just ask William J O’Neil) form at the bottom of charts.
Aloha from the most beautiful island in the USA!!
Maui,
I understand where you are coming from but I respectfully disagree. It’s a cup with handle based on my market experience regardless of where it forms.
And yes, I am and have been an IBD follower for many years and have thoroughly studied and traded the patterns.
EHTH will remain a cup with handle in my research at this time. Nothing is a perfect replication of the past and the rules aren’t as rigid as you explain. If they were, we would all miss out on many successful low-risk/high-reward trades.
A consistent expectancy must have enough opportunity to become achievable.
Besides, this is a recent IPO, giving me all the more reason to classify it as a cup-with-handle. We’re not talking about some beaten down stock that has been around for years.
Other thoughts are welcomed.