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

February 26, 2008

I am not as impressed with the brand new CANSLIM long as much as I am the two CANSLIM longs that I am already long and am looking to add to. But TKC does have some amazing fundamentals and when you see that kind of growth it is hard to pass up a stock bouncing off the 50 day moving average. So I guess I wont pass it up. If TKC did not have a 97 EPS rating I would not be interested in it. URBN and VIVO are both putting in excellent breakouts from very bullish chart patterns, are both in industry group that are climbing the list of top industry groups based on six-month price performance, both have excellent fundamentals, and each show steady growth in mutual fund ownership. After the fundamentally sound stocks, CN and CREE are my favorites as they both have very green and beautiful chart patterns. The other two stock are very speculative but one is priced over $20 and in the very bullish biotech sector that is climbing the industry group list and the other stock is sub-$4 but in the metalores-gold/silver group. At the rate of speed the gold/silver stocks are moving, this cheap and speculative stock will probably do very well. Newbies, be very careful out there and, when in doubt, remember, cash is king in this crazy market.

new CANSLIM long position: TKC

TKC is bouncing off the 50 day moving average, on extremely strong volume. I would be a much bigger fan of this stock if the chart was a bit more calm and had a lot more green on it via heavy accumulation and green to max green BOP. But the stock held the 200 DMA extremely well and retook the 50 DMA on such strong volume that it is impossible to pass up. And BOP did go green just days before this move. Therefore, it is possible, the stock could get very pretty very fast. The fundamentals are fantastic and it is a foreign stock. Which as you know means a friendlier business environment–as sad as that is for us Americans. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

new speculative long position: CN GBN SVNT

CN is breaking out to a new 52-week high and bouncing off the 50 day moving average, on strong volume. This stock is very pretty with all the heavy accumulation and green BOP that is all over this chart. The nice steady uptrend with constant support at the 200 DMA put this stock in a very healthy position that has now led to this strong breakout. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

GBN is breaking out of a sloppy cup pattern and bouncing off support near the 50 day moving average, on strong volume. This chart was not the strongest chart out there until February but it was in an uptrend and it is in the super bullish metal ore-silver/gold group. In February the stock finally calmed down and rounded out now completing the base with a breakout today on strong volume. The nice round base, green BOP, and leading RS and moneystream line help make this a very nice chart in a short period of time. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

SVNT is bouncing off the 50 day moving average and nearing a breakout to a new all-time high, on average volume. The previous uptrend from December was beautiful with a day of HUGE accumulation and green BOP turning max green helping give this chart some new life. After a very low volume pullback, where BOP went green a couple of times, the stock is now bouncing off the 50 DMA on average volume with BOP going green. The RS line is already hitting a new high, leading price, which should be very bullish for this stock. If it is not, the cut loss area is clearly defined, at least. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

adding to existing CANSLIM long positions: VIVO URBN

VIVO is breaking out of an ascending base pattern, on very strong volume. I went over this stock yesterday so you can peak over there for more about this one. The move today was very beautiful, following-through on yesterday’s move with another surge in volume and with BOP going green. The only disappointing thing about this chart is that the RS line is lagging price into new highs–at least the moneystream is leading. But I guess since the fundamentals are so good it really doesn’t matter. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

URBN is breaking out of a base on base pattern, on very strong volume. URBN has been a very pretty stock since November where the stock started climbing on green BOP. It didn’t last long but the stock continued higher in a choppy yet steady fashion. After going long in early February the stock setup in a base with volume drying up and BOP staying green and even rising a bit. Today the stock took off on much stronger volume than in the base and BOP stayed green, helping to keep this chart near perfect. Don’t forget the fundamentals are very impressive (EPS rating of 93). 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: CREE

CREE is breaking out of a choppy cup with high handle pattern, on strong volume. Despite the patterns imperfection, you all know how much I like CREE due to all the green BOP and extremely strong accumulation days in December, January, and February. Just like URBN, right after I went long CREE, the stock setup in a very well-formed flat handle base and it was created on very low volume. That led to today’s very strong breakout that now has this chart looking like a very green and beautiful champ. Cut your loss with a close below the 31 level or the 50 day moving average, if the stock does not move higher immediately.