One New Very Speculative Swing Long, One CANSLIM Long I Am Adding To My Existing Position, And Three Speculative Longs I Am Adding To My Existing Positions

April 26, 2007

new very speculative swing long: ACUS

ACUS is breaking out above the downtrend line connecting the highs of April and bouncing off strong recent support, on strong volume. The uptrend off the April lows was on extremely strong accumulation and the pullback that followed was on very low volume. Both excellent developments. BOP has been green since early April making this a pretty chart. The fundamentals, however, are not so nice. The EPS is bleeding red and there is no end in site and sales are now slowing. Fund ownership is going in the wrong direction from 11 to 9 This is obviously not the kind of stock to be playing for a safe long-term big winner. This is strictly a mometum play in the biotech arena which has been one of the places hot money is going. Newbie emotional traders should avoid this long completely. Cut your loss with a close below the 3.62 level, if the stock does not move higher immediately.

adding to existing CANSLIM swing long: FALC

FALC is breaking out of a flat base on extremely strong volume. FALC started to shape up around July and August and started a strong uptrend on heavy accumulation and green BOP. After the breakout in February on max green BOP and a huge volume surge, the stock continued a bit higher before setting up into a base that gave way to a breakout in April. This chart has had BOP green the entire way. BOP is back to the max green area and has remained green since mid February making this a very beautiful chart. The fundamentals are starting to really grow now. EPS has grown 100%, 100%, 233%, and 200% the past four quarters; sales has grown from 10% to 33% to 29% to 55% to 70%, during the past five quarters. 2007 estimates are for a 133% gain this year, in EPS, and 43% for 2008. This is a very beautiful chart with great fundamentals. Cut your final loss w/ a close below the 50 dma or the 11.45 level, if the stock does not follow-through immediately.

adding to existing speculative swing longs: NAVI WY GTW

NAVI is bouncing off the 50 dma on very strong volume. This stock appears ready to start another leg in the uptrend it has been a part of since the powerful move in March of 2006 started. This stock has seen uptrends full of accumulation and green BOP, followed by low volume pullbacks with BOP holding very well, then followed by breakouts on strong volume and a surge in BOP. This kind of action is very bullish and makes this a very pretty long-term chart. However, the stock is under $10, a bit risky, and has poor fundamentals making this a poor choice for newbie emotional traders. EPS does not exist, so this is purely a play on a very pretty long-term chart. Cut your loss w/ a close below the 50 dma, if the stock does not follow-through on this bounce.

WY is breaking out above the 50 dma on above average volume. This breakout comes after a very quiet basing period in March and April that had very quiet volume. The quiet volume base was preceded by a very powerful uptrend that started in December on very strong volume and max green BOP and picked up steam in February. Despite the nice action in the chart, the fundamentals are nothing to get excited about. EPS is slowing, sales are slowing, and fund ownership is decreasing. This is strictly a play on a very nice technical pattern. This is not a good long for newbie emotional traders. Cut your first loss with a close below the 50 dma and your final loss with a close below the 76.07 level, if the stock does not move higher immediately.

GTW is breaking out above the April resistance and bouncing off support near the 50 dma, on strong volume. This stock put in a good bottom, in August, after a long slow downtrend. The bottom was put in with a ton of accumulation and max green BOP. The pullbacks during that bottoming period had volume dry up completely-a bullish sign. The stock has since been climbing a steady uptrend with plenty of accumulation in the chart. Todayâ€™s breakout with a surge in volume and BOP, along with all the green BOP since July makes this a very pretty chart. EPS finally appears to be turning around with the recent quarter jump of 133% and high estimates for this year of a 400% gain in YOY EPS, but sales are declining and getting worse. This is not the best stock for newbie emotional investors but it is a pretty safe stock for a stock under $5. Cut your loss w/ a close below the 50 dma, if the stock does not follow-through on this breakout immediately.