How To Find The Names That Race To 20% Gains In A Few Weeks

The
market turned in a day that saw very little out of the major
indices.  Volume declined as prices were mixed to lower.

 

 

We saw the NASDAQ rip higher
over the past 5 days until it bumped against its 200-day moving average. 
Based on recent price and volume action, I would say we are poised for higher
prices.  This rally started weak on volume with very little leadership, but
both traits have emerged over the past week and a half.  We have seen strength
out of groups that I don’t usually gravitate towards in commodities such as
steel and oil along with other groups such as telecom and software.

 

Petroleum Development
(PETD) continued its ascent as oil traded above $50 a barrel. 

 

 

Steel Dynamics (STLD)
reversed on very light volume.

 

 

In telecom, Vimpel
Communications (VIP) and Mobile Telesystems (MBT) turned in healthy
days of consolidation on lighter volume.

 

 

Open Solutions (OPEN)
followed through on its breakout from yesterday.

 

 

Now that we are seeing more
frequent action from growth stocks and accumulation in the overall market, it
is best to watch out for the very best stocks out there.  These are the names
that race to 20% gains in only a few short weeks after breaking out of a
7-week price basing pattern.  It is my belief that at this time, the stock
market will begin moving higher in a move that may very well last the next 1-2
years.  With presidential elections only 1-month away, the stock market senses
a load of uncertainty being alleviated.  Additionally, the market is usually
up through an election year.  Right now, the major indexes are mostly flat
with only one quarter of trading to go. 

Between historical precedence
and current price and volume action, this is a great time to again focus on
the stock market AT THE GROUND FLOOR.

Good Trading!