CHARTS AND ANALYSIS BEFORE 6AM EST, LIKE ALWAYS.

new CANSLIM swing long: GSOL

GSOL is breaking out of a cup with handle pattern, on very strong volume. This chart is very nice with the accumulation in it from December to February and from April to now. But there are some problems with the chart. The RS line and moneystream line are not following price to new highs, the last breakout attempted was met with an immediate reversal, and BOP was pretty ugly in February and is only just now going green for the second time this month. So the chart isn’t that spectacular, other than the breakout itself. The fundamentals are very strong, with EPS growing between 50% and 73% the past three quarters and sales growth between 7% and 62% the past eight quarters. Earnings estimates are for a YOY gain of 39% this year and 34% next year. ROE is 18% and management owns 63% so there is plenty of reasons for this stock to continue higher, although it is sure to be a very volatile ride. So unless you can deal with some volatility, I wouldn’t load the boat on this one. Cut your first loss with a close below the 18.90 level and your final loss with a close below the 50 dma, if the stock does not move higher immediately.

new speculative CANSLIM swing long: SILC

SILC is bouncing off the 50 dma, on extremely strong volume. This stock has many nice features on it, with a nice steady uptrend since the August lows, the constant accumulation, bounces off the 50 dma, pockets of max green BOP, and BOP going green again. There are not too many flaws, but there is a lot of red in the BOP that makes the chart a little less nice and the moneystream and RS line could be doing better. Still a nice chart. The fundamentals are getting much better, with EPS growing 33%, 82%, and 100% the past three quarters and sales growing between 37% and 193% the past eight quarters. ROE is an impressive 29% also. This is a nice stock with a pretty easy chart to read. Cut your loss with a close below the 50 dma, if the stock does not continue to move higher immediately.

new speculative swing longs: ASTSF VRSN

ASTSF is bouncing off the 50 dma and breaking out past the past 10 day’s closing highs, on extremely strong volume. This chart is nice because it constantly bounces off or around the 50 dma, has a lot of accumulation in it going back to 2005, and has had a nice run of strong BOP. What I don’t like about this chart is that it reversed the 5/9 move off of support last week on strong volume and triggered a cut loss on Friday. So here I am buying back in at a higher price. That and the RS and moneystream line lagging price is not a good trait either. However, this is still a pretty nice chart since late April. It is worth a poke for me. But not for newbies, as the EPS is now bleeding red and the sales growth has slowed to negative growth the past two quarters. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

VRSN is bouncing right off the 50 dma, on extremely strong volume. This chart has been in a very nice and steady uptrend since the August lows in 2006 and that uptrend has seen plenty of strong accumulation and strong BOP with many green patches in there. Like most charts out there, the problem with VRSN is that the RS line is not moving to a new high along with price. But the moneystream is moving to a new high so it is in a better position than the other longs tonight. However, this is not a good long for emotional inexperienced traders as the fundamentals are very poor. EPS and sales have been bleeding red ink the past two quarters and fund ownership is decreasing. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

adding to existing CANSLIM long: IDSA

IDSA is breaking out of a two-week flat base pattern, on above average volume. This is an extremely beautiful chart, since mid April. The max green BOP, the HUGE amount of accumulation, excellent intraday price action (all the tails you see on the price chart), and the RS line hitting a new high with price makes this a great chart. The fundamentals are mixed, with EPS growing between 33% and 200% the past six quarters and sales growing 24% this quarter after seven straight quarter of negative growth. Management owns a little over half of this company so obviously they have a vested interest, even though fund ownership has dropped from 4 to 3. This stock may be too volatile for emotional inexperienced traders, so keep it small if you are in that category. Cut your first loss with a close below the 14.70 level and your final loss with a close below the 14.05 level, if the stock does not move higher immediately.

adding to existing speculative longs: SONE PRGX PARD HSKA

SONE is breaking out of a very short high tight flag pattern, on very strong volume. This breakout from this pattern is not technically a correct high tight breakout as the runup was not 100% or more and the flag was short. However, this is still a very pretty chart, with all the green and max green BOP, solid accumulation since mid-October, with moneystream and RS hitting a new high with price, and positive intraday price action since early March. What is not good about the chart is that the stock is a long way away from the 50 and 200 dma making it risky for a pullback. Therefore, emotional inexperienced traders should keep this either very tiny or just avoid it altogether. EPS has turned a corner and grew 600% this quarter and sales have grown 22%, 20%, and 10% the past three quarters, so there is a reason for the recent gains. Maybe that is why fund ownership has increased from 40 to 52 the past four quarters. This is a very pretty chart but it would be nicer with max green BOP and a longer base. Cut your loss with a close below the 7.84 level, if the stock does not move higher immediately.

PRGX is bouncing off the 50 dma and breaking out to new closing highs, on strong volume. This is a very pretty chart, with all the green BOP, strong accumulation since September, great intraday price action, and constant support at the 50 dma. The problem with this chart, now, like so many others, is that the RS line is not moving to new highs along with the price. It would also be nice if BOP was max green. But I am up 95% from my first purchase and this is going to be a small long anyway so that is nit-picking it with the RS line and BOP. EPS has turned around and grew 108% the most recent quarter and sales grew 2%, after a ton of red ink the previous six quarters. This stock may be a good stock to be long but it is still risky for newbies to invest too much money in this or even invest in it at all with it being up so much from the first bounce and with the poor fundamentals. However, a YOY EPS growth of 65% is expected in 2008. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.

PARD is making another strong move in this flat base off of support. Even though I just sold my two most recent buys this morning, the reversal in price, volume, and BOP immediately afterwards is bullish. 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.

HSKA is bouncing off support near the 50 dma and breaking out past the closing highs of the past seven days, on average volume. This chart is very pretty with all the max green BOP, huge accumulation since mid-April, great intraday price action, and constant support at the 200 dma. What is not pretty with this chart is the fact that since the up day on HUGE volume where prices reversed off the highs the stock has not gone anywhere. But it is still holding support and BOP is still max green so there is hope. However, emotional inexperienced traders should stay away as hope doesn’t do anyone any good in the stock market. EPS grew 500% this quarter and sales have grown 25% and 30% the past two quarters, but before that it was pretty choppy and mixed. This is really a play on the pretty chart and should be a small play only. Cut your loss with a close below the 50 dma, if the stock does not move higher immediately.