Due the Mid-Week Special Screen on MSW last night, I promised members that I would post up a mini-screen that highlights some of the recent moves of our MSW Index stocks. Every one of these stocks has been actively covered since the initial coverage date listed below. As you can see, we have found many of the market leaders over the past several months as the major market indexes trend sideways to slightly higher. The MSW Index can hold up to 30 stocks at one time but has not held more than 25 all year due to the weakness in the NH-NL ratio (new high – new low ratio). The stocks listed below are among some of the top performers on the MSW Index in 2006.

The NASDAQ hit its highest levels in more than five years while the S&P 500 reached its highest level since May 2001. Volume increased on the NASDAQ, giving us an accumulation day but volume fell among NYSE stocks (mixed signals across the broader market). The NH-NL ratio surpassed 500 and 600 new highs this week on separate days, the first time the ratio has done this since January 26 and January 27, 2006. The week ending on February 2, 2006 did have three days surpass 500 new highs but none of them crossed above the 600 new highs threshold.

The completion to the mid-week special screen will be uploaded tonight on MSW in part II of the daily screen exercise. If SWN fails to recover the 50-d m.a. and then slices back below the 200-d m.a., I will be buying the put options I spoke about earlier in the week. Another stock we have been talking about recently , AAPL (the former MSW Index tenant), received strong support at the 200-d m.a. and then released news yesterday that users can now run Microsoft windows on Intel based Apple machines using boot camp software. The stock rocketed to the 50-d m.a. and then surpassed it in early trading today. The charts were telling us that support was coming from somewhere but we didn’t know why until yesterday. The charts always tell the story before it hits the wire and this is why I don’t trade the news (it’s usually too late). See you all tonight.

MSW Mini-Screen
All prices are from the close on Wednesday, April 5, 2006:

• PMCS – 13.25, the stock was up more than 8% on volume 115% larger than the 50-d m.a. Now up 16% on the MSW Index since 3/4/06
• OXPS – 31.00, up 6.9% on volume 58% larger than the 50-d m.a. as the stock recovered the 50-d m.a. Now up 42% on the MSW Index since 11/12/05
• TS – 202.24, up 6.33% to top $200 for the first time. Up more than 64% on MSW since 12/2/05 when we re-covered the stock at $123. We started our initial coverage last year in the $60-$100 run on 3/5/05 at $65.24 (a 210% gain). Moving up on the all-time MSW All-star list. If you thought buying the stock in the base at $123 was high; what do you think now at $200?
• STRL – 23.30, up 5.72% on volume 30% larger than the 50-d m.a. as the stock is now up more than 23% on the MSW Index since 2/4/06
• LVS – 60.71, one of the most recent additions to the MSW Index as the stock is now up 7% in one week on the MSW Index (looking for a $60-$100 advance this year).
  HAL – 77.34, one of the few energy stocks left on the MSW Index as it has gained 5.92% this week and has a total gain of 17% on the MSW Index since 12/10/05
• NETL – 42.03, the up-trend is still intact as the stock looks to make another new high. The total gain is now 78% on the MSW Index since the first day on coverage on 11/12/05 at $23.56 (only five months).
• NWRE – 30.15, looking to breakout from the most recent cup shaped base (without a handle at this point) to a new high. The stock is now up 49% on the MSW Index since 11/5/05
• NTRI – 48.76, I hung tight with NTRI as it corrected to the lower half of the trading range but held above the support at $35. It is now up 14% on the MSW Index since 2/25/06. Looking for a new high above the previous high at $50.00 set in late January
• GEHL – 40.39, profiled right here earlier in the week and covered on the MSW Index since 2/18/05 at $31.45 (lower than the pivot point of $35.15). A huge breakout this week as the stock has gained over 22% for the week and 28% on the MSW Index
• CBG – 80.70, the stock has now completed half of the $60-$100 run and is nearing a long term capital gain on the MSW Index since its initial coverage on 5/21/05 at $37.20 (a 117% gain).

Piranha

This is a question I received about GEHL earlier today:

Chris,

After the big breakout today, GEHL is still within 5% of the pivot
point. Would you recommend taking a position or has the opportunity
passed?

Thanks,
MSW Member

My Answer:
In a bull market, I would say to jump in if interested. In this type of market, I hesitate in giving that recommendation due to the large number of reversals among breakouts. If the stock reverses, you would be forced to sell quicker than usual. The stock is about 2% higher than our targeted pivot point of $35.15; so you are not chasing it too much from the ideal breakout area.

According to the rules (CANSLIM rules), it is still a buy. Place half a position if interested and watch what happens. If it works out, you can always add shares at a later date on a healthy pullback to the moving average. If you buy and it reverses, sell! Don’t worry about being right or wrong, worry about your risk and following the rules. If you follow the rule of cutting losses and letting the profit ride, the trade will take care of itself. Trade the idea and allow the money to do the talking.

Hope this helps,
Chris

A small void has been left on the blog over the past several days due to my focus on the daily and weekly screens for MSW. After the death of a family member, I felt I needed to perform detailed analysis of the best possible opportunities according to my research for the members of the community. Now that the week is over, I will start to answer member questions on the blog, post up new articles, case studies and interesting stock market topics.

With March coming to a close (the end of the first quarter), I want to reflect on some of the stocks that I have been covering each and every week, specifically the successful MSW Index members.

MSW Index Stocks making moves in 2006:
OXPS – up over 33% since 11/12/05
NTRI – up over 11% in one month
TWGP – up over 10% in one month
TS – up more than 63% YTD
STRL – up 20% in two months
NETL – up over 75% in less than five months
PMCS – up about 10% in one month
NWRE – up almost 50% in five months
CAMP – up over 20% in March
HANS – up over 20% in the past two weeks (200%+ in 10 months on MSW)
LMS – up over 17% in the past week (former MSW All-Star)
CBG – up 37% YTD (up over 120% since covered on MSW last May)

Now compare the stocks above to the Major Indexes:
NASDAQ – up 6.23% YTD
DOW – up 4.48% YTD

Thirteen of the current twenty two members on the MSW Index have been added after February 1, 2006 with eight of those stocks added after March 1, 2006 and two of those stocks added after April 1, 2006. The Index is fresh with new faces and I look to add a new class of stocks to the MSW All-Star list by the end of 2006. Results are not guaranteed but no one can dispute the consistency I have had over the years covering many of the largest winners in the market.

The image in this blog contains the top 15 All-Star stocks that I have covered on MSW since 2004. A covered stock is one that appears each and every week on the MSW Index during its time on MSW, not a stock that appears once in 2005 and then once again in 2006. Besides, all of my 2004 and 2005 archives are being transferred into basic HTML pages for everyone to review. You can see how my research has expanded, evolved and formatted into what it is today. Anyone can now follow the coverage of a specific stock from week to week in the MSW archives. When we are done formatting the pages into HTML, I will generate a link on the blog that takes you to a quick pick page!

Piranha