One New CANSLIM Long Position, Two New Speculative Long Positions, And Two Stocks I Am Adding To My Existing Long Positions

October 24, 2007

There is nothing here that qualifies as a perfect or a near perfect chart, tonight, so I am not sure that most of you should be taking positions in any of the stocks listed below. Yesterday was looking very bad intraday but by the end of the day most of my longs came back and put in very respectable closes. That led to only three stocks being full sells. However, recent longs have not been acting well and I think at this point in the market with it being very volatile I think it is wise to recommend that most people that are reading this should probably not go long stocks here unless you really love it. EJ, BKE, and OTEX are the only three that I can recommend as good longs for investors. GVP and PRCP should be completely avoided by all traders, with the market acting the way it is. It is best to leave speculative stocks alone at this point, unless they setup in a base that looks like APPY did in September. The market is still in a very bullish uptrend and ALL OF THESE INTRADAY REVERSALS SHOULD BE CONVINCING YOU THAT THE CROWD AND TALKING HEADS ON TV ARE WRONG. I know they are very smart and they sure do get paid a lot to offer these opinions. But the market is still moving higher and the action in the IBD 100 and Nasdaq 100 are THE TRUTH. Their analysis, for now, are lies. I can only make money with the truth.

new CANSLIM long position: OTEX

OTEX is breaking out of a three-week tight base from a base on base pattern, on above average volume. This is a very pretty chart with all the strong accumulation and green to max green BOP off the late August breakout gap. Cut your loss with a close below the 27.09 level, if the stock does not move higher immediately.

new speculative long position: PRCP GVP

PRCP is bouncing off the 50 day moving average and putting in a very bullish intraday reversal, on very strong volume. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

GVP is bouncing off recent support and very close to breaking out of a saucer with high handle pattern, on strong volume. This stock is pretty with all the green to max green BOP and heavy accumulation from November 2006 to February 2007 and from September 2007 to now. Cut your loss with a close below the 8.20 level, if the stock does not move higher immediately.

adding to existing CANSLIM long positions: EJ BKE

EJ is breaking out of a very short cup pattern, on very strong volume. This is a very pretty IPO with all the strong accumulation and green BOP all over this young stock. Cut your loss with a close below the 24.99 level, if the stock does not move higher immediately.

BKE is breaking out of a cup with handle pattern, on strong volume. Cut your loss with a close below the 40.20 level, if the stock does not move higher immediately.