Today’s notable stocks are listed at the bottom of this post!

“Trading momentum is paying-off in the current market environment. Swing trading breakouts making new highs on volume at least 100% larger than the average is king. It’s working so pay attention and be smart while putting on trades.”

– This was a quote of mine on February 25, 2008 in a post titled Stocks Catching my Eye

I profiled two new stocks, TITN and RIO, which haven’t made much of a move over the past week but MTL (mentioned as well – extended) was already up 15% in two weeks. The stock has added further gains for a 25% gain in three weeks.

• MTL – 139.93, is now up more than 25% since my analysis on February 12, 2008. MTL first crossed a screen back on December 3, 2007 at $90.98 but I admit that I wasn’t looking to buy at that point (it was new to my screens).
• EOG – 118.04, was the second stock scanned on February 12, 2008 as it was up almost 5% on volume 112% larger than the average. The stock was just starting to break out to new highs while gaining nice momentum. It has gained more than 24% in three weeks while breaking out to new highs on above average volume.

The lesson: buying momentum, especially when a stock makes a new high on above average volume can be very profitable. What seems high to one investor can be low to another (precisely the case for MTL and EOG).

Several other names from the February 12, 2008 blog post are also higher (in less than a month): SWN, RCC, NEU and KWK

Basic Materials (Oil) Stocks Making New Highs

MTL – 111.60, Mechel Steel Group was up 10.60% on volume 97% larger than the daily average

Stocks Catching my Eye: MTL – 126.83

Daily Screen for Monday 12-3-07

Interesting Stocks Making New Highs: MTL – 90.98

Basic Materials (Oil) Stocks Making New Highs

EOG – 98.43, EOG Resources was up 4.58% on volume 112% larger than the daily average

Other Notables Today:
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We all know IBM gave investors an excellent return last year versus previous years but can the stock continue to move higher. Is this the new and improved sustainable Big Blue?

International Business Machines (IBM) has been making some of its largest gains of the past ten years, starting at the end of 2006. Not since the late 1990’s has the stock enjoyed this type of run with volume support which translates into a positive accumulation/ distribution rating.

IBM went from a split adjusted price of $9.67 in 1993 to $132.52 at its peak in the 1999 bull market. It corrected to $51.77 in 2002 before trading sideways for the next four years. Something clicked in late 2006 and the stock ran-up from $70 to a high of $120.57.

IBM closed at $114.38 Tuesday night, a 5.84% gain on volume 98% larger than the average. The stock crossed back above the 40-week (200-d) moving average while also jumping back above the shorter term 50-d moving average. An ascending triple top breakout has also flashed on the point and figure chart.

Next stop: Is it a new multi-decade high which signals a buy?

Institutional Numbers:
Total Held by Institutions: 2,947
Money Market: 1,357
Mutual Fund: 1,472
Other: 118

New Positions: 288
Positions Sold: 125
Shares Held: 1.26 Bil
Shares Held Previous Period: 1.23 Bil

Shares Bought: 116.2 Mil
Shares Sold: 89.5 Mil
Value of Shares Bought: $12.14 Bil
Value of Shares Sold: $9.36 Bil

26.7 million new shares have been bought (versus sold)
$2.8 billion new dollars have flowed into the stock

So what does IBM do these days?
IBM’s business comprises three principal business segments: Systems and Financing, Software and Services.

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