More High RS Breakouts
The market Thursday furnished more
breakouts in the high relative strength, high earnings growth stocks. Meanwhile,
the first wave of breakouts continued to act well.
FEI
(
FEIC |
Quote |
Chart |
News |
PowerRating) shot out of
cup-with-handle on huge volume with relative strength line confirmation.
Precision Castparts
(
PCP |
Quote |
Chart |
News |
PowerRating) bolted
out of a W-with-handle pattern on powerful volume with RS line confirmation.
Catapult Communicsations
(
CATT |
Quote |
Chart |
News |
PowerRating)
lacks the fundamentals but the super-heated relative strength makes it a
contender. The stock may be setting up here.
Among past breakouts that acts well
Thursday were Ryland
(
RYL |
Quote |
Chart |
News |
PowerRating), Fluor
(
FLR |
Quote |
Chart |
News |
PowerRating) and Hot Topic
(
HOTT |
Quote |
Chart |
News |
PowerRating).
All stocks, of course, are risky. In
any new trade, reduce your risk by limiting your position size and setting a
protective price stop where you will sell your new buy or cover your short in
case the market turns against you. For an introduction to combining price stops
with position sizing, see my lesson,
Risky Business.