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Breakouts for Oct 28th: The first pick, AAII, has suffered huge losses over the last 12 months, falling from highs of $31.85 to lows of $1.13. The current bounce looks to be more than just a relief bounce based on today's volume following news of a drug approval. The MACD trigger line has shown consistent strength over the last 2 months, backed up by a rising slow stochastic reading. GTC orders down to $2.31 may be lucky for a fill, but this is likely to follow through tomorrow with a strong close over $2.70. The price target is based on the next level of resistance at $5.80. The second pick, SBL, pushed over $14.35 resistance on the back of earnings. All three technical indicators made new near term highs. In addition, on-balance-volume breached a declining resistance line. GTC buy orders around $14.25 may be good for a fill on lunch time weakness (the time when traders try to shake weak hands out of their shares). The third pick, QSFT, reported strong earnings after hours which pushed the stock up an additional 2%. GTC buy orders in the high $13s should get a fill as morning enthusiasm wanes in what is likely to be a consolidation day in the markets following today's big gains. On-balance-volume is at new highs, although the MACD trigger line remains below resistance. The price target is drawn from a projected target of $22 from point-n-figure charts.

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"IBD" refers to Investors Business Daily