One New Speculative Swing Long And One Speculative Stock I Am Adding To My Existing Position

March 29, 2007

new speculative swing long: GLBC

GLBC is bouncing off the 50 day moving average, on strong volume. This stock has been in a steady uptrend since the August lows, with strong accumulation, low volume pullbacks, and green BOP all over this chart. Even before the stock found a bottom, max green BOP littered this chart from March to June. After a nice steady uptrend started, the stock has constantly found support near or at the 50 dma. This time the stock is doing it after putting in some heavy accumulation days the past three months with BOP now floating around the max green territory. The bounce today on some volume, along with all the green on the chart, makes this a very pretty chart to go long. The fundamentals are horrible, with EPS showing nothing but red ink and sales showing absolutely no growth. Therefore, despite the pretty green chart, this stock is probably not the best long to take for investors looking to make a safe bet. There is simply too many flaws in the fundamentals to expect this thing to rocket to the moon. Cut your first loss and most of your loss with a close below the 50 day moving average and your final loss with a close below the 25.95 level, if the stock does not follow-through higher immediately.

adding to existing position: HH

HH is bouncing off recent support and near breaking out of this saucer with high handle formation, on strong volume. This stock has been in a very choppy uptrend, since the March lows. Since then, the stock, has rallied on some good accumulation and pulled back on light volume, with BOP spending all of its time above the red zone and spending most of that time in the green territory. After the stock topped out in September on some strong volume with BOP in solid green territory, the stock pulled back into a nice tight roundish base. There were a few dips below the 200 dma but the stock rallied back intraday every time it violated that key support line. The stock started to move higher again in February (where I originally went long), breaking out of a saucer like pattern on strong volume and with BOP being green. After a nice low volume pullack that has seen BOP remain near the max green BOP area, the stock has now bounced and is near breaking out past all the intraday highs produced in March. This move today, along with all the green on this stock, makes this a pretty chart to go long. The fundamentals on this stock are just as bad as the last, with EPS and sales growth just not there at all. Red, red, red is all you will see when you look at those numbers. But since I have already told you this information, you don’t need to look anyway. In fact, it is best for newbies, if you do go long this stock, to keep your long very small. Cut your loss with a close below the 4.03 level or the 50 day moving average, whichever one comes first, if the stock does not follow-through on this breakout immediately.

One New Speculative Swing Long And One Speculative Stock I Am Adding To My Existing Position

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