All three longs tonight are of extremely high quality. The only problem with OTEX and GFA is that buying them with a market order this far from the 50 DMA is very risky. Therefore, I must recommend limit orders. And for those of you that do not know where to put the limit order, you need to do some research on IBD to learn where to put it. Some of you struggle with this when it should be common sense that tells you where to put it. I mean why do some of you worry about .10 or .20 cents with a $50 stock? I see that too much and proves that too many of you are too short-sighted with your investing. This is why so few can hold the Monster Stocks. Well, I promise you, if you give me more than just one freaking month, I can teach you how to make the big money as some of you are now seeing what can happen when the market is in your favor. Don’t forget that this is STILL technically not a good bull market. The NYSE is on its 28th straight day of volume below the 50 DMA. I am not sure the last time is that I have seen that but this shows that the big boys are not participating. Just imagine if they were buying our stocks too. We would be making a KILLING!!! A low VIX and low volume makes it very hard for us to make a killing. But the past two weeks sure have been very kind to us with DGLY and GFA. There have been some HUGE stinkers like BRKR, GEF.b, and TITN. But the most you have lost on those, IF YOU BOUGHT CORRECTLY, was 15%. Cramer is out there cutting losses with 30% to 50% losses all the time. You will NEVER see that here. The most we lose is 20% on very-tiny small-caps and 10% on big-caps. Newbies should almost NEVER have a hit over 15% throughout the year, if they stick with liquid stocks. And I should provide you with over 50 that produce at least 50%. In a raging bull I can find 50 that move at least 100%. So you have to remember it is all about the market. This market is still very lame and yet we are starting to have some clear winners: OTEX CMP FEED MTL MA IHS EBIX DGLY GFA HA GENC XIDE MCF GEOI and hopefully BKE. So when you take all the small losers in this nasty market with our winners, things are actually going very well. Don’t forget about all our great shorts like SIGM, GRMN, and CBEY which all produced over 55% gains in less than six months. They do NOT all work. But when they do, THEY REALLY WORK. When we get a great bull market, 70% of the stocks I go long will work. In bear markets only 20% to 30% work which is why I don’t recommend being aggressive and cutting losses quickly in bear markets. We still do not have a raging bull and I think having at least 20% to 40% cash is smart here waiting to see what the big boys actually do. These longs are great but they are extended. Please use limits and make sure you check out the fundamentals. All three stocks are VERY impressive when it comes to the income statement and balance sheet.
new Featured long position: OTEX
OTEX is bouncing off the 50 day moving average and breaking out to a new all-time high, on extremely strong volume and with BOP going max green from green. This stock has been in a beautiful uptrend since August 2007 when the stock gapped higher on huge volume and max green BOP. Since then there has been nothing but steady accumulation, green BOP, and strong price action with excellent support at key areas in the chart (50 and 200 DMA). The BOP going from green to max green, the RS and monesytream line hitting new highs slightly ahead of price, and the volume behind this move make this one of the best breakouts of today’s market session. Hopefully, this can pullback a bit to give us a much better entry tomorrow. Cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
new speculative Featured long position: PWRD
PWRD is bouncing off support at the 50 day moving average and is starting to breakout to a new 2008 high, on strong volume. This chart is very pretty with the nice round shape to the price action, the strong accumulation on the days up and the lower volume on the days when the stock is lower, and the green BOP that is all over the chart going back to October 2007. The moneystream is already hitting a new high before price which is positive divergence which is bullish. Cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
adding to existing Featured long position: GFA
GFA put in a perfect follow-through, bouncing off the 50 day moving average and breaking out to a new all-time high, on extremely strong volume. This chart’s setup was near-perfect with only the max green BOP missing to make it perfect. At least it has green BOP now and is breaking out on an extremely powerful move in RS, moneystream, volume, and price. The weekly chart shows the amount of accumulation that is in this stock and it is obvious that this under massive accumulation. Fund ownership has grown from 23 to 27 to 32 funds the past three quarters and it is clear to me a new fund has entered or the existing funds are LOADING up. Hopefully you have loaded up on this stock, with me, and hopefully this stock will at least double before we have to get rid of. In case things do not work out and the stock does not continue to move higher immediately, cut your final loss with a close below the 50 day moving average.
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