4 Stocks I’m Watching Now

• August 3, 2005
• Jack Rothstein

Here is the gist of it.
I will speak about TWTC right now. It’s a stock I sold the other day near
current levels, and I was right about its drop. It is on the way back. I will
also address the action in SGMS. Those are the tickers of two stocks that have
one common theme: they are both in rising trends. Another stock that is in a
rising trend that I will quickly follow up is VSTA. That stock is in great shape
and had a breakout today, climbing above its 21.15 resistance early and closing
at the high for the day. One more stock that begs a look is ISIL. So, let’s get
into it right now.

                                                                                                     

Time Warner
Telecom
(
TWTC |
Quote |
Chart |
News |
PowerRating)

                                   

I owned this stock a few weeks ago and sold it at a nice profit and will come
back to it if it can cross the near high in the 7.25 zone. That is my intention
as the stock crossed paths with my eyeballs this evening. I like what I see. The
pullback satisfied an extended condition. Still, the stock is somewhat extended.
The mild correction never did pose a threat to its 50-day moving average and the
short-term pullback is over. TWTC again trades above its 10-day line. All
cylinders are in sync. The stage is set to make a run toward 7.25. A close above
that and the stock moves to higher zones. The technical underpinnings are
strong. The advance is solid. It is slightly extended. The choice entry point is
7.25, especially if the level is crossed in heavy trade. The stop is the 50-day
line, which is rising at a 45-degree angle. That would be 5.99.

                                   

Scientific
Gaming
(
SGMS |
Quote |
Chart |
News |
PowerRating) 29.63

                                   

This is a stock
that is expressing a lovely site for sore eyes, as it’s late in the day and the
the chart of this sweet moving thing brings a smile to my parched lips. It’s a
hot summer night in August and the choice to examine charts takes precedence
over the unattractive certainty of traffic. SGMS is in good shape as it crossed
into heights never experienced. The stock trades at its 5-year high. It backed
off that and closed slightly below the 30.15 high. The stock trades well. The
volume could have been better. Still, volume has improved lately and the
interest to have these shares continues to grow. The result is higher prices.
Greater the demand the higher the price. How high? Don’t know. What I do know is
the stock trades in a nice advance that hints at higher price levels. It is a
good chart and the tape must be respected. It’s good between 26 and current
levels. Place the stop at 25.99.

                                                                                                          

Vista
Healthcare
(
VSTA |
Quote |
Chart |
News |
PowerRating) 21.68

                                   

Thin. VSTA is thin. That means it trades in light volume. Demand causes the
stock to spike. VSTA is in a new advance that comes off the heels of a decent
base that followed a brutal decline. The stock took a dive and is now in a new
advance and it broke out today in light volume. That is not the cause for
exhilaration. It is the cause to keep alert about false breakouts. The break was
clean. It did not gap. That is good. The fact that it did not gap encourages
more upside. The stock has a way to go before it runs into a wall of resistance.
It could challenge the 25-28 zones. That is certainly possible. Buy the stock
near 21.15. Buy it on a limit. Place the stop at 18.99 and 16.99.

                                                                                                                 

Intersil
Corp.
(
ISIL |
Quote |
Chart |
News |
PowerRating) 20.12

                                                  

OK. I did sell a
piece but am flexible and will come back to it if the stock is able to negotiate
the 20.65 price point or better on a close. Then I will regain the former
excitement I had about the stock. The stock just has to cross 20.65 and then it
is clear that the price will rise higher. That was the peak achieved on 6/23/05.
If it crosses that line then the stock is free to challenge higher levels as it
continues to retrace the decline experienced last year. It is up 20% this year
and only 10% in the last 52 weeks. The bulk of the gain made recently. It is a
brand new advance on the heels of a long base that followed a brutal decline.
Get the drift? Get the gist! It’s about timing. The stock is in a good advance
and ought to be had. So have at it on a close above 20.65. Place the stop at
18.99 and 16.99.

Jack S. Rothstein

Jack Rothstein is the President of Rothstein
Investment Advisory Services, Inc. and is a 20-year veteran stock trader and a
money manager and trader.

Mr. Rothstein also writes Wealthcast, a monthly newsletter about the technical
behavior of the markets. He has been quoted on Bloomberg, CNNFn, the Dick Davis
Digest and the Dow Jones Newswire. Since 1993, Mr. Rothstein also hosted
WealthCast, a radio show in the Washington DC area covering the stock market.