More And More Names Setting Up…Here Are A Few

Is
this a new Bull Market?

I’ll let you know a year or two from now! For the time being, we need to digest all of the positive action we are
seeing and play it accordingly. We have
seen nothing but extremely positive action in the overall market for the past
couple of days.


 


Take a look at the above
charts and notice Monday and Tuesday’s trading and the correlated volume.
The decline came on much lower volume and Tuesday’s rally produced
heavier volume. At this time, I can say
that we are in a good market that appears to be under solid accumulation by
institutions. This could change as soon
as Wednesday’s trading, but don’t count on it.

Breakouts in the growth arena have been occurring left and right. 
More importantly, they seem to be succeeding.  

University
of
Phoenix



(
UOPX |
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PowerRating)
pushed through its buy point of 40.10 on extremely
heavy trade back on March 19. The
company boasts an 87% growth rate and an ROE of 46%.
There’s no question that the company has it together fundamentally. 
Technically, the stock broke out on its largest trading volume since
March of 2002.


 

United
Online

(
UNTD |
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PowerRating)
broke through a short handle of a very large
base. This company has been pushing
triple-digit earnings growth for the past four quarters.
It is currently moving towards the top of a handle of a low-level,
multi-year base.


 

Group
1 Software

(
GSOF |
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PowerRating)
broke through a pivot point of 17.10 on very
heavy volume today. The weekly base
resembles a slight V-shape, but the stock closed over 6% above its pivot
point.


 

Out of the medical sector, Varian
Medical

(
VAR |
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PowerRating)
broke out of a flat base, through 52.95.
Volume was 150% above average.  The
company’s growth rate is 57% and ROE is 22%. 


 

Many of the breakouts we are
seeing are of higher quality. We have
also seen some smaller names pushing ahead. Flamel
Technologies
(
FLML |
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PowerRating)
and Vital
Images

(
VTAL |
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PowerRating)
are examples of these.


 

Over the weekend, I was
further impressed with the number of candidates that met my initial screen.
Last week, I pulled up 130 stocks. This
past weekend, I pulled up 180. This
means that more and more names are setting up each day the overall market
remains healthy.  Shuffle
Master

(
SHFL |
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PowerRating)
is one such name as it works through a rare,
ascending base. 


 

We are also seeing Cognos

(
COGN |
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PowerRating)
setting up as it works through a multi-month base and comes from
the same group as GSOF.


 

I admit that I still look
high and low for signs of trouble with this rally.
So far, we just can’t argue with its success.
We’ll continue to keep an eye on price and volume in the major
indices as well as the strength of breakouts. If
we see more choppy action out of them such as we saw with J2
Global

(
JCOM |
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Chart |
News |
PowerRating)
in its attempted breakout through 25.90, then it
will come as a warning sign.


 

Until Thursday,

Tim
Truebenbach