Breakouts for July 3rd: Two current stocks and one new pick for Monday. The scan had no shortage of stock suggestions, with over 70 stocks! The first pick, REY, most recently featured as a Subscriber pick for June 26th. Friday's gains pushed the stock over $30.49 resistance which facilitated a new higher stop price. The gains were not associated with any particular news item other than an earlier affirmation of Q3 outlook. The breakout in price was supported by a breakout in on-balance-volume too. A supporting point-n-figure breakout won't come until there is a move to $31 (which would be a new 6-year high for the stock). Upward pressure is building up nicely and the point-n-figure target of $41 may turn out to be a little conservative. The 1.4% yield is modest but would improve nicely on a surge in price. The second pick, SPTN, had featured previously in January and March of this year. Friday's breakout followed a sharp pullback in technical strength which pushed the stock into deep oversold territory at $12.17. Technicals are all on the rise once again and on-balance-volume sits shy of a break to new reaction highs. The stock had come off a downgrade by Matrix Research on the back of a $4.4m charge and closure of two stores. It too sports 1.4% yield. Weekly chart shows a very nice cup-and-handle pattern which will come to fruition on a move to $15 (= point-n-figure chart triple top breakout). Current point-n-figure target of $10 looks fanciful at this stage. Price target drawn from a projected from the lows of the current base. The third pick, NAVR, carries a higher degree of capital risk and may be better served by using GTC buy orders down to $4.86. The stock sits in good technical shape with a MACD trigger 'buy' above the bullish zero line, a breakout in on-balance-volume to support the one in price and a close above the 200-day MA on heavy volume. The gains continue a June 16th double top breakout on the point-n-figure chart with a price target of $8.00. There was some PR to go with the volume buying, but I couldn't tell if the volume was the result of a rights issue (or not???). Lots of work needed to get this back on track but at least it is a step in the right direction.

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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
$4.98	$4.31	$8.71	$4.83	$6.50	5.6	D

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"IBD" refers to Investors Business Daily

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