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

November 26, 2007

Absolutely none of these are going to be large position. Unlike most traders, I can handle hundreds of positions and still handily beat the market which is why I am going long all of these stocks. However, for those that are new to investing or who have been having a rough time in this market, I recommend that you remain in cash or continue to work on the short side ever so vigilantly. Going long right now has not been the right play in the overall trend of the market but some have been doing well and all of these are set up in strong enough patterns to move higher despite the rough market. However, nothing here is perfect and three of the five are too extended and the other two are too volatile day-to-day to make good longs. Keep them small, professionals. Newbies stay away. I know all of this might sound like it is getting old but trust me this is the way the best traders trade. There are very few MUST BUY moments where you get a perfect chart. We only got two that worked this year and it could be months before we get another one. Being patient and waiting for the next TASR is what you have to do so that you have a lot of money to put to use when you find the next TASR. That is when it is time to load up. Until we find another TASR, every long must remain small until we get another perfect chart like HRZ AFSI and TESO were.

new CANSLIM long position: ARD

ARD is breaking out to a new all-time high and bouncing off the 50 day moving average, on very strong volume. The stock just had a split so that makes me nervous. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

new speculative CANSLIM long position: WATG

WATG is bouncing off support near the 50 day moving average and breaking out past recent resistance, on very strong volume. The RS line is already hitting highs ahead of price, confirming the underlying strength in this stock. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

new speculative long position: II

II is bouncing off the 50 day moving average and closing at its HOD, on strong volume. This stock is very pretty with all the max green BOP, heavy accumulation, and positive price action the past month and a half. Use limit orders only as this stock is very thin. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

adding to existing CANSLIM/speculative CANSLIM long positions: SXE VRSN

SXE is breaking out to an all-time high and bouncing off support near the 50 day moving average, on very strong volume. The RS line is leading the stock well into new highs and the BOP is still max green making this a very nice and strong chart. Cut your first loss with a close below today’s lows and your final loss with a close below the 50 day moving average.

VRSN is breaking out of a very short continuation consolidation flat base pattern, after the breakout bounce off the 50 day moving average, on above average volume. Cut your first loss with a close below the 36.38 level and your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.