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Breakouts
for October 10th: The first pick, SIM, featured first as a Breakout for September 6th. The current break doesn't quite push the stock to new reaction highs, but it does continue a rally started in January 2006 from $4. A move to $16 would be enough to trigger a double top breakout on the point-n-figure chart. The current price target of the latter chart is $19.25. There is increasing trouble for the stock in the shape of a bearish divergence in bullish trend strength (+DI) as well as a similar bearish divergence in the MACD. On-balance-volume is fast approaching a consolidation apex, while the stock makes new highs on lower volume (also bearish). The second pick, DE, has been a star performer since it first featured to Subscribers back in August. Its most recent feature as a free pick was on September 27th. The current consolidation is an excellent opportunity to raised the stop on all existing open positions. The gains came in the absence of company specific news - the most recent of which was responsible for a bearish hit to the stock. Monday's gains continued the September 27th double top breakout and keep the stock on track to reach $114. The third pick, DTLK,
is a double Subscriber pick from July and September. The October Breakout feature marks a fresh breakout on strong volume with earnings scheduled for next Wednesday (a pre-earnings run???). Although the MACD remains contained by a consolidation, on-balance-volume continues to show strong accumulation. Monday's gains did not change the ascending triple top breakout from September 12th - although the stock has now reached the price target of $10.75. I am looking for a measured move forward.
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