Daily Screen for Thursday 6-26-08

I noticed that my screens were lacking stocks making new highs (especially on above average volume) and stocks making moves on above average volume across the board. The general market indices were higher but the leading stocks (the few we have left) were not supporting the moves. Overall, the NASDAQ and DOW are trading below their respective 200-day moving averages and are still trending downward on the weekly charts with resistance at the long term moving average.

I was able to pinpoint a few interesting candidates tonight with VISN as my highlighted stock, a stock that has made multiple blog posts since May.

Visionchina Media (VISN), 18.13, a stock I have been starting to profile in multiple blog posts over the past month as it seems to be getting support at the 50-day moving average. It was up almosy 10% today on volume 79% larger than average. It did slide to close the day but looks to be trading in an opportunity area. $15 to $18 is an area to grab shares.

6/4/08: VisionChina Media, Inc. (VISN) – $18.84

Potential Trade Set-up:
Entry: $16.00
Risk is set at 1.0% of total portfolio or $1,000 of $100k
Stop Loss is 10% or $14.72
Number of Shares: 781
Position Size is $12,500
Risk is $1.28
Target is $30 for a 10-to-1 risk/reward ratio.
A move back to $23 with a buy at $16 would be a 5-to-1 risk/reward trade.

Stocks making multiple screens tonight:
CVLT, MA, PPO, PSEM, SLH

Stocks of Interest:
AVAV, EIG, PPO, SLH, SXE, VISN

Aerovironment Inc. (AVAV), 28.64, the stock gapped up for a 14.79% gain today on volume 502% larger than the average. It looks as if the momentum is about to turn-up on this stock as it is now in new high territory

Employers Holdings (EIG), 20.39, the stock was up 2.21% on volume 43% larger than the average as it is now trading above the 200-d moving average. Up more than 30% since February.

Polypore International (PPO), 26.42, up more than 10% today on volume 38% larger than the average as the stock looks to make a new all-time high. It has more than doubled since the fall-out after the IPO debut last summer. Buys along the 50-d m.a. are ideal.

Solera Holdings (SLH), 27.85, up more than 5% today on volume slightly larger than the average as it continues to trend higher (ever so slowly).

Stanley (SXE), 33.20, an interesting stock that seems to be building a cup shaped base over the past seven months with some support at the 200-d m.a. Have some trouble with studder-steps in recent weeks but overall, the chart catches my eye on a weekly view.

Stock Screen for Wednesday 6-18-08

Some solid and some not-so-solid stocks made the screens tonight (technically speaking) but the main theme of Tuesday seemed to be the resistance near new high territory. My two examples, (CSIQ) and (PPO), were both higher on strong volume but they couldn’t close in new high territory or the top end of their daily ranges.

This information tells me that the market is currently facing some resistance or profit taking near new high levels. However, these same stocks facing some resistance now may be ready to take-off once the weak holders are shaken out of their positions. Ideally, that is exactly the type of trade I am looking to enter as I love stocks making new highs with no resistance in sight.

Stocks making multiple screens tonight:
AIMC, BLT, CF, CRK, CSIQ, FSIN, HK, HP, LL, MCF, NOA, OMGI, PPO, PQ, RSG, TITN, TRA, VAR, XCO and XIDE

CSIQ and PPO made four screens and TITN made three.

Canadian Solar (CSIQ), 47.00, was up 10.69% today for a two day total of 20.51% on above average volume. Volume was 171% larger than the average on Tuesday and is already above average for the week. The stock is now within 3% of a new all-time high. I do have a major problem with the intraday action which had the stock close in the lower end of the daily range (lower half of the daily candlestick). This type of action suggests some selling pressure near $48 or the buyers from last month looking to break even. A move to new highs later this week is bullish.

Polypore International (PPO), 25.38, reached a new all-time high intraday with a 4.49% on volume 187% larger than the 50-day average. As the case with CSIQ, the stock didn’t close at the top of its range which concerns me slightly. Overall, the young stock looks solid as it is trending higher with a new double top breakout on the point and figure chart. Relative strength is rising as the company lives in an interesting industry group.

Stock Screen for Tuesday 6-17-08

Today’s screens give us an interesting mix of stocks that were higher on above average volume. I was specifically looking for stocks that were up at least 1% and had volume of at least 50% larger than the average. Several names, such as AAP, ABFS, ACM, EEP, ERES, FDS, GDI, IPHS, NDSN, OMI, PQ, TEVA, TITN, TOT and VIT, showed up on multiple screens. I will admit that not every one of these stocks look appealing after viewing the charts.

TITN, Titan Machinery (made three screens) was up almost 11% on volume 509% larger than the average closing at a new all-time high. The stock is now up 30% since the original analysis on April 21, 2008 at $23.97 (the ideal trade setup was noted at $21.00 which the stock did drop down to). A buy on a move back above $21 would give you a current gain of 47%.

Vanceinfo Technologies (VIT) is a stock that I noticed for the first time today as it was up 3.37% on volume 122% larger than average. VIT made the IPO screen and interesting stocks within 15% of a new high screen. The Chinese stock interests me as it has more than doubled in price over the past three months and is now flirting with a new all-time high.

This is exactly how I dissect my screens each night – I look for stocks that are up more than 1% with volume at least 50% larger than the average. Stocks making multiple screens are viewed first but every chart is analyzed.

Top Rated Stocks

Today I am posting a list that shows the stocks that are making multiple screens based on my fundamental screens and scans (click the link to understand the criteria in more detail). I run these scans every night and make notes of stocks that are appearing on more than one screen (I have found that these are the strongest stocks in the market and have been using this method for almost eight years).

I do own several of the stocks listed below but I am always ready to jump into new opportunities when the risk/reward warrants the purchase. I keep my personal watch list up to date on a daily and weekly basis so I can make a move when the charts are screaming buy. I also watch my current holdings to look for red flags that help me determine if a stock needs to be sold (yes, I do have predetermined sell points once I reach a 25%+ profit but I do remain active when monitoring my portfolio).

Two of the most important screens that have helped me buy and sell since 2007 have been stocks with:

  • Institutional Sponsorship Increasing
  • Quality Stocks with a new IPO within the past two Years

Stocks making new highs and stocks within 15% of new highs haven’t been my bread-and-butter in 2008 nor have stocks trading along the 200-d moving average. I have explained in the past how I use my screens and scans and how I determine which ones are more relevant during specific markets environments.

Top Rated Stocks according to my Research
*Disclaimer – this is not a buy list!*

  • SOL – 25.08, ReneSola Ltd. , the young stock has moved from $7.36 to a peak of $29.48 in two months with solid institutional accumulation along the way. Any drop with support in the $20 area is an excellent risk/ reward buy.
  • POT – 199.07, Potash Corp. Saskatch Inc., is the superstar of all superstar stocks over the past two years. Shorter term plays can happen on pullbacks to the 50-d m.a.; longer term accumulation can take place at the 30-week moving average. I wrote about the sister stock IPI in April.
  • MA – 308.65, Mastercard made another new all-time high this week as it reached $320 with consumers using the plastic as their home equity loans dry up. I still own the stocks and will continue to hold untila trend snaps.
  • SD – 55.00, Sandridge Energy Inc., made another new all-time high this week and it continues to trend higher on increasing volume. A couple late day reversals to end the week sent up a red flag (minor at this point in time).
  • GTLS – 41.89, Chart Industries Inc. is trading near new all-time high territory as the trend is higher. A move above $43 will trigger a triple top breakout on the point and figure chart (a positive sign if it comes on heavy volume and without a reversal).
  • TITN – 24.30, Titan Machinery Inc. is still making new all-time highs but did run into some selling pressure near the $26 level. The trend is higher and I am holding until told otherwise by the charts.
  • GFA – 44.68, Gafisa has been an enigma in my mind as I figured it would be much higher by now based on fundamental and technical feedback. But, we all know that’s not how the market works – it’s not rational in the way we think it should be. In any event, GFA remains a top rated stock on multiple screens I run every night.
  • V – 86.36, Visa is closing in on a new all-time high after the recent dip from last week which did present an excellent buying opportunity or additional accumulation area. I am a holder and will look to add on opportunities such as last week as Visa remains the new MA in my portfolio eyes. Again, the market must tell me otherwise before I consider selling.
  • HES – 122.81, Hess Corp. has been on a tear but is now extended from the major moving averages. Ideal accumulation areas along the present themselves on pullbacks to the 50-d m.a. and/ or 200-d m.a.
  • LL – 15.88, Lumber Liquidators, the recent up-trending chart is nice to look at but I am skeptical about its market. It sells hardwood flooring and we all know the construction industry is taking a black eye in the media and sheep follow the media (their decisions are based on what they see and hear). Regardless, the stock showed up on multiple screens once again so I can’t ignore it because of my biases.

Other High Rated Stocks in my System:

Young Stocks Moving on Volume

A screen I run often searches for stocks that have debuted on the market with an IPO within the past two years. I prefer trading in young innovative stocks that can make strong moves based on powerful earnings and revenue increases.

Today’s group contains stocks that are very familiar to this blog as they continue to appear on almost every type of screen I run.

Why?

They have been the leaders of the market over the past 1-2 years at one point or another. I can’t say that I would buy shares in all of the issues listed below but they are on a watch list. Momentum trading has been very profitable over the past 6-8 weeks as we can see in stocks such as CLR and SD.

Continental Resources is up more than 100% since it’s low in January of this year. It’s moved from $24.44 to $47 in one month on huge volume versus the average. The stock is certainly extended but that’s what I thought when it debuted on the blog on January 7, 2008 at $26.57

CLR – Continental Resources Inc., $26.57
This is the first appearance of the stock on this blog as it has had a nice run from $15 to $28 in four months. The stock is extended but trending higher. An ideal entry is above the 50-d m.a. Set up a favorable risk-to-reward trade before entering.

Titan Machinery and Visa Inc reported solid numbers but their stocks went in opposite directions based on the guidance they gave moving forward.

Young Stocks up on Higher Volume
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