One New CANSLIM Long Position, Two New Speculative CANSLIM Long Positions, Three New Speculative Long Positions, And One Stock I Am Adding To My Existing Long Position For Tuesday’s Stock Market Session

February 25, 2008

There are a lot of nice longs out here tonight, and as long as you LISTEN TO ME!!!! and cut your losses with closes below where I tell you to, you will not have any problems. GEOI is the most speculative out there tonight but even that one is relatively safe with the stock bouncing right off the key 50 day moving average. But the other speculative priced stock–XIDE–has had some amazing EPS and sales growth recently. Along with that, estimates for next year are huge and the fund ownership has gone from 11 to 28 funds holding the stock in the past four quarters. So obviously this is a real! “stock under $12.”

new CANSLIM long position: VIVO

VIVO is bouncing off the 50 day moving average and breaking out to a new February high, on very strong volume. This chart is very nice with the extremely solid uptrend that has had the stock finding constant support at the 50 day moving average. The very strong accumulation, extremely strong moneystream and RS line, and strong BOP help make this a very nice long term chart. The fundamentals are extremely impressive also, with an overall 94 EPS rating and strong estimates for ‘09, which has caused fund ownership to grow from 99 to 136. This is one of the better CANSLIM stocks in the market right now, based on chart pattern, fundamentals, and the strength of its sector being one of the best out there. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

new speculative CANSLIM long positions: HRL XIDE

HRL is breaking out of a cup pattern to a new 52-week high, closing near its HOD, on very strong volume. I profiled this stock in RM about a week ago and now we have our breakout on strong volume with the RS line well into new high ground. On top of this perfect action, BOP has jumped to a higher level of green and is only a few steps away from maxing its green out. The fundamentals are solid and fund ownership has increased from 97 to 100 the past quarter showing rising interest in this company and its macro-story. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

XIDE is breaking out of a cup with high handle pattern, on very strong volume. This stock was BEYOND hot back in January 2007 when I went long XIDE on the breakout on very strong volume with BOP going max green. In a little under one month I was sitting on a very nice 60% gain. Sadly though, that was about all the gains XIDE had for me then. The stock is now breaking out on strong volume after making a very nice quiet handle with BOP being green the entire way while the stock was making it. Not only that but BOP went green on the right side of the base as the stock gapped higher in February. All of that accumulation and green BOP combined with all the strong accumulation and green to max green BOP back from November makes this a very pretty chart. Not only is the chart nice but the fundamentals have taken off the past two quarters with EPS growing over 100% and 900% the past two quarters, sales jumping to 27% and 35%, 09 estimates for a YOY gain of 291%. Fund ownership has grown from 11 to 28 funds the past year. Cut your loss with a close below the 10 level, if the stock does not move higher immediately.

new speculative long positions: CXG YTEC GEOI

CXG is breaking out to a new all-time high from a very short ascending base pattern, on strong volume. This stock has only recently become a nice looking chart but it did so very fast as the stock gapped higher on extremely strong volume with BOP going max green at the end of January. Since then the price and volume action has been bullish and BOP has remained green. However, the fact that the max green BOP has fallen to green while the stock broke out on strong volume is a bit of a problem. The other problem is that the breakout was so strong yet volume not as strong. These are red flags that can’t be avoided. Cut your loss with a close below the 35.02 level, if the stock does not move higher immediately.

YTEC is bouncing off recent support, putting in a bullish intraday reversal, closing strong near the HOD, on strong volume. Why couldn’t this bounce right off the 50 day moving average? Oh well. This is still a very bullish move in a stock that has a lot of momentum favorites interested in it. The uptrend from September to October on such extremely HUGE accumulation with max green BOP and the action in February on strong volume with green BOP helps make this a very very pretty chart. But, of course, as has been the par for this market, the chart is not perfect and there are things to be cautious about. The RS line is not leading the stock to new highs, there is not a ton of volume on the move today, and the sector the stock is in is pretty weak in this market. Cut your loss with a close below the 16.39 level, if the stock does not move higher immediately.

GEOI is bouncing off the 50 day moving average, closing near a new all-time high, on strong volume. This stock has been in a nice uptrend since the rally started in October on strong volume with BOP going max green. After a steady uptrend, the BOP went green again in January with volume reentering the stock on the upside, helping setup this most recent base the stock is breaking out of on strong volume with BOP going green again. The RS line is not hitting new highs ahead of price which is a negative divergence and that combined with the low price should keep ALL newbies away from this stock. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

adding to existing speculative long position: JRCC

JRCC is putting in a very bullish engulfing candlestick pattern, bouncing off of support, on strong volume. Platinum subscribers already know how much I like this stock so I am not wasting my breath on this stock anymore. All I can tell you now is that I still like this stock, it is still in one of my favorite MOST BULLISH sectors right now, and the chart pattern is still very green and very bullish. As long as it keeps moving up on higher volume and pulling back on lower volume, I want to stay very long this stock. However, this stock is COMPLETELY speculative and at the first sign of heavy selling that hits this stock I will not hesitate to take some profits and run. Cut your loss with a close below the 15.61 level, if the stock does not move higher immediately.