There are a few noteworthy candidates that need to be discussed. I bought in today on UEPS. Click on the chart to find out why. I mentioned UEPS back on April 25th to watch the stock as it may break out of the Darvas box it was in. It took 16 days to break out of the box, but that is why I keep a watch list.
LFC kicked into gear today and is a buy candidate. RIMM (Z's choice) broke out of a consolidation period and is at a 52 week high (perfect Darvas candidate) ICE (Z's choice) is coming up again as a buy candidate in a potential bottom of a cup. BIDU (Z's choice) may be making a run for a new 52 week high soon. Hello again the MCRS. UGI made a 52 week high a few days ago and it may go on to break into a new high. RVBD is also making 52 week highs. For a low-priced stock check out JADE.
MR has now entered the middle of the Darvas box that was outlined earlier. The top of the box is at $25.07. So if a trader wanted to get in on this one when it broke out above $25.07, the best bet would be to place a BUY STOP ORDER 10 cents above the highest level of the box. So, if the top of the Darvas box is $25.07, one would place a BUY STOP ORDER at $25.17.
On the short side, THQI made a run for the door and probably will continue to do so along with KCI and GLDN. GLDN is my best bet for shorting.
As for my current positions: TAM has treated me well in the past 3 days since it broke out of a downtrend. Granted, these are riskier trades than what Darvas was doing trading stocks that were making 52 week highs. This technique that I have formulated does occassionally pick up the bottom of a cup-and-handle as described by Wm. O'Neil with Investors Business Daily.
ARNA is still on a tear and I like it. I love it. I want some more of it. But stop loss it at $13.11 to keep a profit.
If I only coulda been in on RBN.
I got stopped out of my EUR/CAD trade after it made a run back up after a large downturn. I made a total of a 59 pip profit which amounts to $535 profit. I am looking back on that trade and I probably should have taken my profit of 120 pips a few days ago since this is not a highly liquid pair. I am still long USD/JPY and entered a long trade (USD/CHF) today at $1.2190. Let's see where these take us. I entered the USD/CHF trade based upon my template in Metastock I named "DEER - ADX Forex" I am trading based upon technicals and not upon fundamentals. It is the hardest thing to do, but I have to trade based upon signals - not emotions.
Remember - you can always go and look at these stocks for free at www.stockcharts.com
www.investors.com also offers free education in the IBD learning section.
STOCK WATCH LIST: AAPL, AF, BBND, BLUD, COMV, CRM, FCSX, FSLR, GOOG, GS, HSR, ICE, IFOX, JASO, MCO, MCRS, POT, RIMM, SAY, SOLF, SPWR, TALX, TSL.
I hope that you forgive me. Embedded within this post are notes to me for the actions I need to perform. The blog is my trading journal and I don't want all of my secrets known. I am posting my actions as I would trade, but I obviously want to get into a trade before everyone else does.
GOOD LUCK TRADING.
JD
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