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Breakouts
for November 15th: The first pick, GPM, most recently featured for October 20th and continues a rally started in May of this year. The point-n-figure chart is neutral for a price pattern (a move to $25 will trigger a double top breakout) but has a price target of $28.50. The rally has followed a solid trendline, but each new high comes on ever decreasing volume - a bearish marker. Accumulation (as measured by on-balance-volume) has stalled/flat lined, while the MACD generated a weak 'buy' trigger. In summary, tighten stops. The second pick, IHS, pushed its third breakout in 2 months after the company announced an 8.4 million-share stock offering priced at $33.50. With the exception of on-balance-volume (negatively affected by the huge volume spike a few weeks back) technical strength has remained firm. The MACD trigger line is in consolidation, but is well above the bullish mid-line. October 16th saw a bullish catapult breakout with a price target of $50. The third pick, BOH,
featured to Subscribers for October 24th. Tuesday's break to new near term highs sets up a relatively low risk 'dummy' entry and is an excellent opportunity to raise the stop from the original position. Technicals are mixed; on-balance-volume and the MACD are undergoing consolidations while bullish trend strength (+DI) shapes a bearish divergence. Luckily, slow stochastics are firmly overbought = strong bullish momentum. The stock pay s 3.2% yield. The point-n-figure chart remains neutral for a price pattern and has exceeded its original price target of $45.50.
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