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Breakouts for Oct 5th: The first pick, COPY, is a speculative play which has marked a breakout for the second time over the space of a few weeks. A test of $1.23 looks to be a minimum expectation, a break of which should be used as a reason to move stops to $1.22. There has been no news to account for recent buying action, although the company did release its quarterly earnings on Sep 2nd. Note the new highs in the MACD trigger line and on balance volume. This confirms the bullish action as the stock maps a RHS base. The second pick, SBTV, has traded within a tight range over the last three months. The last three days of price action have set up a very bullish "Three white soldier" combination (three days of higher opens and higher closes). GTC orders down to the open price of the second of the three candlesticks should be good for a fill over the coming days, adding to a small position taken off tomorrow's open. Technicals still have some work to do to break resistance, but a solid move past $36.80 should achieve this. The third pick, KOMG, is building a new base after steady declines throughout the first half of 2004. The stock closed just above the 200-day MA, so it could be vulnerable to some sideways action as it digests through supply at this psychological resistance level. GTC buy orders down to $15.00 looks to be the best entry here. The stock has experienced positive money flow since its lows in August (see Gallery chart). The bounce off the August lows was lead by earnings. The price target is based on resistance at the 52-week high ($24.57).

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"IBD" refers to Investors Business Daily