These 10 Mid-Cap Stocks Are Where The Action Is

                                   

Beacon Power Corporation (BCON) 2.33

                       

Cadence Design Systems (CDN) 15.52

A site for sore eyes. That is what this stock is today. After a meaningful
decline last year it built a decent base and is now in the process of making a
new advance. The stock is up 12% this year. The stock is extended after breaking
out above the top of its base on 7/28 in heavy trade. The stock is trading off
the highs that resulted from that breakout. It is coming in and ought to be
bought in the vicinity of 14.50-15. That is the ideal price to get the shares at
this point. That is the line of support; and getting the stock at that price
point lowers the risk. It trades above key inflection points and a 14.50-15
price places you just above those levels. I would place the stop at 13.89.

                       

McDermott (MDR) 24.99

The stock has already come in after it opened powerfully. It gapped. It is an
energy stock. Energy stocks are leading the market and will have their pauses
and corrections. Now is a bullish time for energy. Profits are running high.
These stocks trade like tech stocks did in the late 90’s.This is a stock that
has a good chart and solid fundamentals. It has much going for it right now. The
stock is in a powerful advance and has lots of momentum. It is a momentum stock
and momentum players are playing it up. No question about that. It has momentum.
It is up 36% this year and 146% in the last 52 weeks. It is a leader that has
staying power and won’t quit. At least not right now. Eventually it will quit.
They all do. Today the stock is slightly extended, so a better price to pick up
shares is near 23. Place the stop at 21.99 for traders and 18.99 for investors.
The beta is 1.20. So a bullish stock with a high beta equals positive results.

                       

Gilead Sciences (GILD) 42.63

                       

The stock traded under its 50-day moving average on Friday for the first time
since 2/05. The 50-day line was 33-and-change at that time, so what does that
tell you? It tells you that the stock is just a tad extended and it is time to
come in and pause for a while. It broke below the 50-day line in average volume,
so it’s not a catastrophe. I will keep it till 40.80, where I am inclined to
sell all of it. That is where the loss is stopped. The 200-day line is a place I
am willing to buy it back down to 37.60. It has formed an intermediate-term top.
That is what is happening to this stock right now. It is still in good shape
long-term. It is short-term negative. If it holds in here then it could be quite
a buying chance. The stock has great fundamentals and that is its saving grace.
The technical underpinning is strong but this stock may have to trade at current
levels for a while as it got ahead of itself. It is a stock to watch carefully
for buying chances. It is one of the best performing stocks over the last 5
years. So are you really serious about making money? Then I suggest you take a
look at GILD with a broad lens. It is up 21% this year. It’s a buy, coming in
below 40. Use the 200-day line to stop the loss at that point. I am long the
stock currently and will stop the loss at 40.80. I am flexible and will seek a
buying chance in the stock at any time it comes. This is not a stock that trades
like dog meat. This is a stock that trades like spinach. It is a stock that
Popeye the Sailor would get into because being an owner of GILD makes you
strong. A big winner.

                                   

Redback Networks (RBAK) 9.08

The stock is up 69% this year, so caution right now is appropriate. It is a
bullish stock, no question about that, but you can get burned if you are too
anxious about it. Be patient. Have some patience and go slowly with this issue.
I am happy to own it right now. It is gaining strength. It is moving toward its
01/04 high of 11.25. The current move is happening in better than average
volume. So if you are serious about making money in individual stocks then take
a look at RBAK. It is a major winner this year and, although extended, the
long-term technical underpinnings are favorable toward delivering winning
performance. That is what you are looking for in a stock. It is what you seek. I
am seeking that reality everyday in every stock I am into. Pick up shares coming
in to the 8-8.50 zones. Place the stop at 7.29 and 5.89.

                                               

Quanta Services (PWR) 10.87

This stock is just awesome. It is an awesome stock. So what do you do with it
right now? If you are long PWR you can sell a piece. It is extended right now.
It is a bullish stock, so wait for the adjustment (if one actually comes) and
pick the shares up around 9.50-10. That is the better price point at this time.
Place the stops at 8.99 and 7.99.

 

General Electric (GE) 33.81

Sell short on a rally. GE is a terrible stock right now. It made a nice recovery
and it is falling. It is in decline right now. The formation of a top is past
history. It is currently in decline but oversold. That is the opposite of an
extended stock that is in an advance. So this stock is trading poorly and could
be sold short at 34.50-35. I invite you to gaze at a chart of GE and notice what
is glaringly apparent. The stock is in decline. The way to profit from a stock
that is in decline is to sell it short. If you are long GE why are you
tolerating this action? It can be bought back anytime when the tape is right. So
sell it short and place the stop at 37.80.

                                                           

Johnson and Johnson (JNJ) 63.54

The DJIA is a drag. Isn’t it? Take a look at a chart of the DJIA. A daily chart.
Take peak and what do you observe? I see a plateau. The Dow has been a drag. It
still trades above its 50 and 200 day line. JNJ does not. Neither does GE. JNJ
is rolling over. So is GE. They are both rolling over. What does that say about
economic conditions 6 to 9 months out? The current economy is strong. What is
the market saying about the future relative to GE and JNJ? Beware. That is the
tale of the tape. JNJ trades below key inflection points. It is ready to break.
If the current short-term negative action expands and moves into an
intermediate-term bearish mood then the action relative to JNJ and GE will
provide short sellers a decent gain. In a way the smart money is short the DOW
and long small-cap and mid-cap stocks. So sell JNJ short after a bounce. Sell it
near 65. Place the stop at the 150-day line, which is 66.19.

                                   

Apollo Group (APOL0 72.78

The Apollo Group. Schools. Education. Who cares what they do anyway? What they
do has nothing to do with making money. It is how they are being perceived by
the players that focus on it that makes the difference. So how is APOL acting
right now? It is being bad! It is in decline. It trades below key inflection
points. More sellers than buyers create downward pressure. The price is heading
lower. If you are short this instrument then the odds favor you will make money.
That is what you want, isn’t it? Sell APOL short up to 75.75. Use 76.50 to stop
the loss.

                                   

Starbucks (SBUX) 50.54