Charts Ready To Explode

• January 9, 2003
• Vincent Mao

The
following charts show the recent price action of stocks meeting low-volatility
criteria as specified by research from Larry Connors. These stocks also have
short-term consolidation patterns. Stocks exhibiting these characteristics have
a greater-than-normal tendency to explode from their consolidation.

Avid Technology
(
AVID |
Quote |
Chart |
News |
PowerRating)

 

Biosite 
(
BSTE |
Quote |
Chart |
News |
PowerRating)

 

Computer Sciences 
(
CSC |
Quote |
Chart |
News |
PowerRating)

 

Mercury Computer Systems 
(
MRCY |
Quote |
Chart |
News |
PowerRating)

 

From recent “Charts Ready To
Explode,”
(
CTSH |
Quote |
Chart |
News |
PowerRating) down 14.17%,
(
ITMN |
Quote |
Chart |
News |
PowerRating) down 13.50%, and
(
BTU |
Quote |
Chart |
News |
PowerRating)
down 4.66%.

Remember,
this strategy does not predict the direction of the move, simply that a
move is imminent.

Always use protective stops on every trade. This material may be new for some of
you. For more detailed analysis of how to trade using volatility, please see Street
Smarts and Connors
on Advanced Trading Strategies.