No New CANSLIM Swing Longs And Four New Speculative Swing Longs For Wednesday.

January 30, 2007

New Speculative Longs: SPRT NTLS IOMI KNXA

SPRT is breaking out of a perfect two week flat base and a perfect two month cup with high handle, on above average volume. This chart you are looking at is very beautiful, with the tight base building pattern, accumulation, and green BOP all over this chart. Volume was not as strong as I would have figured with this amount of move. But it is possible that it was so coiled up that that is obviously all the volume it needed. The fundamentals are horrible, but the chart is very green and very sound. That makes this stock strictly a speculative stock. Cut your loss w/ a close below the 6.45 area, if the stock does not follow-through on this breakout immediately.

NTLS is bouncing off the 50 dma and breaking out to new 52-week highs, on very strong volume. This stock has been under constant accumulation since the October lows, has stair-stepped its way higher, and has done it with plenty of green BOP. That along with BOP going max green and staying max green after the 1/24 move makes this chart very pretty. There is no EPS growth and sales growth is boring with it averaging between 11 to 16% the past seven quarters–sales growth is also slowing. That makes this chart strictly speculative based on the beauty of this chart. Cut your loss w/ a close below the 50 dma, if the stock does not follow-through on its breakout immediately.

IOMI is breaking out of a short cup pattern over the January closing highs, on strong volume. This chart is not that great until you get to November. That is when you see a flat base form with a shakeout at the end. After that shakeout, the stock exploded to the upside on its heaviest volume EVER. BOP went max green then and has stayed max green, while the stock formed a short quiet sound base. With BOP staying max green on this breakout, along with volume picking up, you have a very pretty short-term chart. However, fundamentals are HORRIBLE and there is nothing there but this chart. I definitely don’t think newbies should even mess or look at this chart again after reading this. Cut your loss w/ a close below the 5.50, if the stock does not follow-through on its breakout immediately.

KNXA is breaking out of an almost four month ascending base on strong volume. This stock was under HUGE accumulation from its last uptrend in 2005 to the May top in 2006. Along that uptrend, BOP was green to max green almost the whole way. The stock then started a decline lasting till August. After the bottom, the stock rallied in a stair step pattern with good volume on the way up with less volume trading hands on the way down–overall positive action. However, on 1/19 this stock retook its 50 dma on the second most heavily traded day of its life. Since then the stock rallied a few days on heavier volume and then settled down for a few days leading to this breakout. Two problems is the short length of this last basing period and BOP going from max green to a slightly higher green on this move. This stock is a bit more solid in the fundamentals with EPS back to positive growth with the most recent quarter coming in up 60% Y over Y. Sales growth has been between 39%-63% for the past eight quarters. So overall there is some fundamental reason for prices to run much higher but due to the short consolidation pattern at the end I wouldn’t bet the farm on this stock. Cut your loss w/ a close below the 50 dma, if the stock does not follow-through from this breakout immediately.

No New CANSLIM Swing Longs And Four New Speculative Swing Longs For Wednesday.

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