Breakouts for Feb 22nd: Penny stocks again swamped my Breakout scan, so I have gone for two prior plays which have made modest follow through moves, and one speculative penny stock. The first pick, ARS, last featured as a breakout for November 9th. Tuesday's breakout followed some low volume action, on 'buy' signals in the MACD, and on-balance-volume. The stock is very extended at this point, and buying here is high risk. I have raised the target price, but it is the stop price which carries greater significance now. The stock was most recently downgraded by KeyBanc Capital Markets / McDonald. Tuesday's action did rank as an ascending triple top breakout on the point-n-figure chart, but the stock has far exceeded its point-n-figure target of $29. The second pick, BLI, is a current Subscriber pick from January 23rd. The stock managed a another, higher volume, break of resistance. This time into the run up to earnings, to be released pre-market Wednesday. Subscribers should note the new stop price. If the stock gaps down on the open it is a sell. If it gaps up, then it should be possible to fade the gap for a long side fill (particularly if the market has a weak day). On-balance-volume remains the strongest technical indicator here. I have kept the January 23rd price target. The third pick, SPSC, is a speculative, OTC BB penny issue. The break of the 50-day MA, combined with the close at new, near term highs, reverses what had been a soul destroying fall from $2.60. The income sheet does not make for bad reading, but in its current form, it is a momentum play. Short term traders can look for a rally to the 200-day MA (currently at $1.06). Patient buyers may still get fills around $0.79. Positive PR has helped drive the buying, but it will take more than a close over $1, to get people thinking there is greater substance to this.

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For those who prefer to set their own price targets the table opposite represents the frequency for a given % return (taken from maximum highs) assuming a fill at at the stated "Buy" price on the open (i.e. the prior days close). The return per trade from 5% risk is typical of what my subscribers can expect from their picks. The return per trade from 10% risk is what one can expect from my free stock picks. Returns will be higher on fills below my "Buy" price

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96% of featured stocks turn a profit greater than or equal to break even, assuming a fill at the prior day's close. 91% of featured stocks return a profit of 1% or more assuming a fill at the prior's day close; 78% of picks return a profit of 2% or more. 92% of featured plays are completed within a 6-month time frame. Stocks which are still in play beyond 6-months are usually experiencing strong rallies. Returns will be higher on fills below my "Buy" price

Buy	Stop	Target	Support	Resistance	Risk:Reward	IBD
$0.85	$0.71	$1.47	$0.81	$1.10	4.4	n/a

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"IBD" refers to Investors Business Daily

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