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.
Potential Trade Set-up:
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.