Ford Breakout a Success

Ford has successfully started its run up after breaking from its consolidation pattern and testing the breakout. Continue to hold the stock as it has more room to go.

Ford Tests Breakout, OXPS still OK

Three quick issues to cover...

Ford has come back to test its breakout point. It reached a low of 8.95 this morning but I suspect that will be about all. There looks to be much upside ahead.

OXPS, a stock I recommended not too long ago, did not find support on its 200 sma but instead is reaching to its 50 sma. I would stay long if you bought earlier and would buy more as it reaches its 200. If it breaks the 200 sma, cut your losses and get out.

Thats all for now.

CM

Ford Breaks Out

Ford broke out this morning on a very weak day in the broader market. It looks like it will close above the past resistance making this a clear buy signal. I would buy half now and see if it pulls back to retest to buy the next half.

Buy OXPS soon

OXPS or OptionsXpress has been coming down after jumping sharply a week or so ago. This stock has been beaten down so much over the past 6 months but now I believe the tides are turning in its favor. It looks like it will come back down to its 200 sma at 25.70ish and should take a run after consolidating on it for a short bit.

This chart very much resembles what CREE did only a few weeks ago. It's performance after that was unbelievable in a very short period of time. I believe this stock is worth taking a chance on once it comes down to support as the risk/reward is in our favor.

I'll be back posting in a bit.

CM

Short Term Weakness in Ford Will Likely Lead to a Breakout

Ford is in a very interesting pattern right now with resistance overhead at 8.96ish a place it has been struggling to break through for about a year now. It has slowly been making a low, hitting this level, bouncing off, making a higher low and proceeding to go through the process again. Because this has been the pattern in the past I would definately think that it would continue in the near future. As we can see in the chart, the stock bounced off of resistance and is coming down quite sharply. I believe it will find support around 8.35ish where it will resume its higher low pattern. Eventually, Ford will break through the tough line of resistance yielding a huge reward for those in the stock beforehand. The pattern is rather large so the breakout should be large as well.

That is all for now. Hopefully I will be back on to post again tomorrow and keep you updated about trades.

CM

Sell ATU

ATU has had a nice run and is close to fulfilling its breakout potential. Therefore as the stock moves into the low 60s, it becomes a sell. The gain is just to much in to short of a period of time not to lock in.

CM

SFLY breaks from a triangle, ATU flies

Ok, so I got three stocks I'm going to mention on here. These are not the only ones I'm liking here. There seems to be some really good breakouts, ranges, and momentum out there to trade. But without further adeiu here they are...

SFLY


You know I hadn't even heard of this stock nor had it shown up on any stock screens that I've done before tonight when it was mentioned on Fast Money as a takeover candidate. I just had to look at the chart after hearing that! What do you know, it looks excellent (from my perspective, feel free to make your own judgements).

What I am seeing is a breakout from a triangle that would measure to around 22.75, a 10 percent gain from today's close. While it is a bit worisome that an exit is not clearly defined (a stop below the middle bollinger would do but there is some downside in that), I think you'll be able to tell if this trade goes bad. As for an entry, I would try waiting for the open tomorrow. If it opens up I'd put half a position on and wait to see if it comes back in to test the breakout at 19.85ish. That is where I'd put the other half on. If it opens weak, wait for it to come in within reasonable distance of that breakout point and buy it up.


ATU


I mentioned ATU recently as a trade to persue. It is now breaking to the upside, the beginning of what could be a very nice run. If you entered where I said, you're already up 3 percent, don't look to cash in yet unless there is a serious change in price behavior.

Sell NMX, CREE soon

NMX needs to be sold here as it hits resistance at a little over 140. We've traded the range from 119 to 140 in a very short time period now it is simply time to take profits and possibly prepare to short the stock back down.

Cree spiked to 27 once again providing another opportunity to sell remaining shares, locking in a great gain in a short period of time.

Monster Gain in CREE and NMX

Some of my most recent picks have flown off the charts recently.

For example CREE recommended a little under 19 went to 27 (while I was in China) in about a week and a half. A HUGE 42 PERCENT GAIN.

NMX is continuing to climb from my buy point in the 118s to where it is today at up to 135. A 17 dollar (or 14 percent) gain in about a month.

Not too shabby.

I'll see if I can bring more like these to the blog in coming days.

I'll have a few more I'm watching posted tonight with charts.

That's it for now.

CM

Back from China; 2 Stocks Ripe

I'm finally back from China and into summer school. It's taken me a bit to get organized and get back on here blogging away.

Anyway, I've got two stocks I'm watching which are coming down to be good clean buys.

The first is JBX (Jack in the Box). This stock flew out of consolidation after reporting above expectations earnings. The day after it tested its breakout then went higher to 78 from 72. The stock has now come back down to around the 72 level once again with bollingers closing in on it and its 50 sma right below. I think this stock is a good buy at around the 72 level. I think the breakout point will hold again and the stock should remain strong. If the stock does break its 50 sma then I would give it a little leeway as there is a possibility for a trendline at around the 70 level.

The second is ATU (Actuant). This stock presents a very similar situation. You have a strong break from a triangle consolidation pattern and now a near retest coming at around the upper 54s where the stock finds support on its middle bollinger. I think the level offers good support and a nice place to buy this stock. The triangle pattern that it broke out of previously was large so it seems to have good upside from here. I would stop out on this one below the 50 sma.

That's it for now.