New Swing Longs

December 26, 2006

One new swing long and two stocks I am adding to my current holdings. Analysis is on the “details about longs” forum.

SNDA is breaking out of a very big year long improper cup w/ handle pattern (improper because it is from a downtrend) on strong volume on a day where there was no volume in the market. There has been a lot of green BOP on this last leg up from November and even though it has calmed down appears ready to get green again along with the stock price. Cut your loss w/ a close below the mid December lows, if the stock does not immediately move higher.

GRRF is breaking out of another consolidation area on above average volume. The breakoutâ€™s pattern is yet another cup with handle formation and a base on base pattern from the November breakout. BOP is max green and has been max green in all but four days in December, from early/mid November. This is a very beautiful chart. Cut your loss w/ a close below the 12/19 lows or the 50 dma, if the stock does not move up immediately.

CLRT is breaking out of a short consolidation pattern on very strong volume. The pattern is a base on base (first base is the November base) pattern and since the September lows has the stock has been LOADED with green BOP and accumulation. BOP has been max green all December long and all the high volume days are clear accumulation days with the pullbacks coming on low volume. Cut your loss w/ a close below the 1.40 area, if the stock does not produce gains immediately.