Breakouts for July 26th: The first pick, CERS, is a good example of trading the bases. The stock's most recent feature was as a breakout for June 28th. Monday's break completed an important resistance level, leaving room to run to the next resistance at $13.00. I have kept my original price target, but will likely reassess this as the next base forms. The good news trigger was a cover article in Nature magazine. Given the recent accumulation there is firm backing for this move (as read by on-balance-volume). GTC orders down to $5.16 may still be good enough as price needs to reaffirm support at this important psychological level ($5). Monday's action was good enough to trigger a double top breakout on the point-n-figure chart with a price target of $10.75. The second pick, DESC, last featured as a breakout for June 20th. Earnings are due on August 4th which may keep one wary for holding this long, although it did raise 2005 guidance. Current heavy volume buying may trigger an exhaustion run towards psychological $10 resistance as it starts to develop the early stages of its parabolic form. All three technical indicators are strong - when these develop bearish divergences with respect to price does one need to get worried. A solid Investors Business Daily ranking is an added bonus. The move retains a double top breakout from June 17th on the point-n-figure chart with a price target of $9.50. The third pick, NFLX, is likely to open above $19 following strong earnings released afterhours. The large gap will likely draw prices back to nearest support so I wouldn't rush to buy off the open (and if the market has a bad day it could spend the whole day in retreat). Watch for support at $17.50 and I would use this as an alternative buy price with the suggested stop. The stock originally featured for May 13th and the new listed stop and raised target price should be used for this position. The point-n-figure chart shows a price target of $35.50.

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"IBD" refers to Investors Business Daily

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