new speculative CANSLIM swing longs: OMNI

OMNI is bouncing off the 50 dma and breaking out past the March highs, on very strong volume. This chart is best viewed on a two-day chart so that the intraday daily volatility is minimized. As you can see this is a very pretty chart since the September 05 move on huge volume. This stock has been a bit volatile but the trend is up and the accumulation has been very impressive. The stocks fundamentals support this move, as EPS has been growing between 167% and 800% the past four quarters and sales have grown between 41% and 193% the past five quarters. ROE is an extremely impressive 51% and that is why management probably owns 43% of this stock and mutual fund ownership has increased from 10 funds to 12 funds the past four quarters. This stock is a very nice chart and has great fundamentals, but inexperienced emotional traders should still be careful due to the risk involved in this stock if it does not rally. Cut your loss with a close below the 50 dma, if the stock does not move higher immmediately.

new speculative swing longs: BYI ARQL ICOC

BYI is bouncing off the 50 dma and breaking out of this cup base on base pattern, on very strong volume. This chart is extremely beautiful with all the green BOP that has now turned into max green BOP. That along with the very heavy accumulation since October just reinforces the beauty of this chart. The only ugly aspect of this chart is the RS line. The stock is hitting a new 52-week high but the RS line is making a series of lower highs. That is slightly negative divergence. Even though we have an extremely beautiful chart, RS should be making a new high, so don’t get too crazy with this stock. EPS is bleeding red the past eight quarters but maybe the chart is looking ahead to this year’s earnings estimates for .36 cents and next year’s 156% expected YOY gain. Sales have been growing also, with the past three quarters seeing 3%, 28%, and 33% gains. Fund ownership has gone from 56 to 54 funds, so despite the beautiful chart, mutual funds are not that interested for now. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

ARQL is bouncing off support right near the 50 dma, on strong volume. This stock started to make a nice move in November and continued to move higher to the May highs before starting this pullback. The pullback was on very low volume and the best part of the pullback was that BOP stayed green during the pullback. In fact this stock has had green BOP since early April making this a very pretty chart since early April. But that is all this stock is as the fundamentals are not good at all. EPS is bleeding red and estimates see losses as far as the eye can see. Sales growth does not exist as sales are stagnant, just like fund ownership growth. Basically this is nothing but a short-term pretty chart in a biotech momentum phase of the market. Inexperienced emotional traders should stay away and experienced traders should keep the position relatively small due to the low price of the stock and the speculative nature of it. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

ICOC is breaking out of a cup with handle pattern (started at the end of October, handle started early May), on very strong volume. This is another chart that looks beautiful on a two-day chart. The bottom of the cup base in February came on very strong volume and then as the stock built the right side in April accumulation started to pick up again. What makes this base very nice is that there is no red BOP in the base except right when the cup with handle started. The green BOP during the cup lows, the BOP staying above the zero line during the handle this month, and BOP going green on today’s move are other nice features. EPS grew 189% in the most recent quarter and 07 and 08 YOY earnings growth estimates are for 35% and 16% respectively. Sales have grown between 2% and 22% the past eight quarters and ROE is a respectable 16%. Fund ownership has decreased, however, falling from 17 to 14 the past four quarters. So this is not the most perfect chart for inexperienced emotional traders to trade. The low price of the stock makes it riskier for newbies also. Cut your loss with a close below the 6.95 level, if the stock does not move higher immediately.

adding to existing speculative CANSLIM longs: TTG

TTG is bouncing off the 50 dma and breaking out of this flat base to all-time closing highs, on extremely strong volume. This is an extremely pretty chart, with all the max green BOP on this from mid October to now. What makes this breakout and bounce off the 50 dma so nice is the fact that there was no red BOP in the base, there was a TON of accumulation with no selling during the uptrend leading to this flat base, and BOP went max green and stayed that way one day before the breakout/bounce. This is an extremely pretty chart but because of the low average daily volume and sub-$10 price, I would not get too crazy and buy a whole lot of this at any market price. Inexperienced emotional traders should use limit orders only. EPS has grown 124%, 300%, and 400% the past three quarters, YOY earnings estimates for 07 and 08 are for 433% and 62% gains respectively, ROE is 4%, and sales growth has been 8%, 36%, 43%, and 43% the past four quarters. So there are plenty of fundamental reasons to support this move in price. However, mutual funds still don’t appear interested as only one fund has a position in this stock. But maybe that will change after the next reporting period, with all this accumulation in the chart since mid-February. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

adding to existing speculative longs: PARD

PARD is making another strong move in this flat base off of support. This stock keeps coiling and looks ever more ready for a breakout. The flat base is being built perfectly, with low volume on the down days with intraday reversals and higher volume up days with strong closes. The strong move in November on volume with BOP going max green, along with all the max green BOP in this stock since the uptrend started again in April, makes this an extremely beautiful chart. This is one of the prettiest charts the pat two months, with all that green BOP, accumulation, and great price action in the base. However, beside this HOT chart, we have NOTHING else. The EPS is bleeding red ink and there are NO sales. Fund ownership has fallen from 11 to 9 the past four quarters. There is absolutely no reason to own this beside the chart. Therefore, despite the beauty of the chart, inexperienced emotional traders should not even think about going long this stock or buying any more of it if you went long when I started buying in April. Cut your loss with a close below the 6.60 level, if the stock does not move higher immediately.