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Breakouts for Oct 18th: The first pick, BBV, edged above a brief 5-day consolidation on heavier volume. More importantly, the stock has broken a 10-month base (see weekly chart). There was no company specific news for the breakout. Technical strength is good, with MACD, on-balance-volume and slow stochastics at new highs and rising. The price target is slightly above the target derived from the depth of the base ($16.88), with strong buying momentum this could challenge $20.00. Should this get stopped out prematurely one could look to buy back (or start a position) on a test of $14.00. The second pick, IUSA, beat street estimates by $0.02. The stock broke a 7-month consolidation on the weekly chart. The daily chart shows a break of $10.00 resistance (now support) but still encountering resistance at the last reaction high of $10.60. At current prices it is a good buy. GTC buy orders down to $10.11 can be used to add (or take a position) using the current stop. Once $10.60 is breached on a close basis, move stops to $9.84. Once $12 is breached, move stops to $10.49. The third pick, PRM, is not the strongest of breakouts given the proximity of resistance at $2.55 as marked by the 200-day MA. Some positive PR from the company yesterday helped provide today's boost. Technical strength is good, even if the MACD trigger line remains just below resistance. An aggressive buy at current prices. A break of $3.00 sets up a move to $4.50 and beyond that, $8.50.

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"IBD" refers to Investors Business Daily