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Breakouts for Oct 15th: The first pick, CCK, made a solid move past recent $10.50 resistance and important psychological $10 resistance. The company released strong earnings after hours, but it will be interesting to see how the stock reacts to the news tomorrow in light of a weak general market. Technically, the MACD remains below a four month resistance level, but the signal line has crossed over above the bullish zero line. On balance volume is also at new highs. The second pick, REG, just inched above resistance of a bullish ascending triangle. On balance volume is at new highs, with a MACD trigger line crossover above the bullish zero line. Earnings are set for Oct 27th, so this looks to be a pre-earnings run which will sell off on the news. I have given a relatively modest price target based on the extended nature of the recent run and the likelihood of an earnings sell off. A price target drawn from the depth of the last base would be set closer to $60. The third pick, LSTR, is in the latter stages of a rally started from $14.50 at the end of 2001, but relating to an earlier rally started in 1999 from below $8.00. The new breakout comes on the back of strong earnings which exceeded expectations. Technically, on balance volume is strong, although the MACD trigger line has turned away from a point of prior (strong) resistance. Price targets are based on psychological resistance levels as there is no overhead resistance. Patient buyers may want to use GTC orders down to $59 to buy their shares, keeping the existing stop as a protective exit strategy.

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"IBD" refers to Investors Business Daily