Charts Ready To Explode

• November 15, 2001
• Eddie Kwong

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.

Brooks Automation
(
BRKS |
Quote |
Chart |
News |
PowerRating)

NPS Pharmaceuticals
(
NPSP |
Quote |
Chart |
News |
PowerRating)

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

 

Peoplesoft
(
PST |
Quote |
Chart |
News |
PowerRating)

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

From recent “Charts Ready To
Explode,” Univision
(
UVN |
Quote |
Chart |
News |
PowerRating) has gained 9.7%, L-3 Communications
(
LLL |
Quote |
Chart |
News |
PowerRating)
moved 10.5%, Morgan Stanley
(
MWD |
Quote |
Chart |
News |
PowerRating) rose 7.3%, and Infosys Technologies
(
INFY |
Quote |
Chart |
News |
PowerRating)
gained 12%.

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