If you are interested in a system which covers only a handful of stocks, charges only for profitable months, delivers trades via email or mobile phone in real time, and is verified by a third party - then my
actively managed portfolio is the system for you.
General notice on Breakout stocks: Until markets reach a reaction low as identified by the market internals in the right-hand-margin I will be limiting the number of breakout stocks featured. Based on prior performance history this is perhaps the best strategy to employ.
April should see some good buying opportunities.
Breakouts
for February 15th: The first pick, BITS, cleared a cup-and-handle pattern on higher volume after the company announced it was awarded certification by the Print On Demand Initiative (PODi - hmmmm! I kid you not). The move coincided with a MACD trigger 'buy' and a bullish cross of the 20-day SMA, with a sharp rise in bullish trend strength [+DI; ADX > 20, just = bullish trend]. Wednesday's gains also saw a double top breakout on the point-n-figure chart with a target of $19. I have selected this as the upside target. The second pick, TRT, has a more congested 'handle', but it is a base-breakout play. The move above $15.39 did enough to negate the bearish divergence in the MACD trigger line (for now), and helped push bullish trend strength to new highs [+DI; ADX > 20 and rising = increasing bullishness]. The two volume buying spikes over the last four days helped cross on-balance-volume above its 20-day MA trigger line. The point-n-figure chart shows a double top breakout from February 9th with a preliminary price target of $26. If you look at a yearly chart you will see a huge 9-year base with plenty of volume in the right-hand-side of this base; a target of $31 is derived from this pattern. I have opted for the point-n-figure target for now. The stock pays a healthy 3.8% yield and reported earnings last Friday - so there should be no major fundamental shock. The third pick, MIG,
is a deep base breakout play following a positive test of 200-day MA support, where on-balance-volume suggests some long term accumulation was happening. Guidance was released on Tuesday after reporting Q4 earnings. Not only is on-balance-volume running in the bulls favor, but there is a bullish divergence in the MACD trigger line and a cross between bullish and bearish trend strength [+DI > -DI; ADX < 20 = trendless]. The weekly chart shows a prominent (and stable) advance from $5.38 ro $12.48 - if this was to project forward one could look for a move to the $20s. I am looking for a projected base target first. The point-n-figure chart is neutral for a price pattern and a target.
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