This low-priced stock is ready to break out

Yamana Gold
(
AUY |
Quote |
Chart |
News |
PowerRating) 4.10

Nice stock. Nice. It is poised for another run. It broke through the 50-day
line yesterday as gold stocks expressed some life. AUY is on its way back
after correcting an over bought condition. It is extended no longer and I
added to the position carried yesterday. Gold is in a secular bull pattern and
it pays to be involved in metals at this time.

Harmony Gold Mining
(
HMY |
Quote |
Chart |
News |
PowerRating) 11.10.2005

HMY, another gold nugget. Another winner among the overall market and in good
shape right now and poised to make a move after correcting and building a
layer of support. I added to the position carried yesterday. HMY trades above
all key inflection points and is firing on all cylinders right now. Check the
chart and notice the reversal off its adjustment. It is no longer extended in
the way it was prior to the pull back. Now that it has crossed 11 again and in
decent volume it pays to notice it and do something about it.

Gold Corp
(
GG |
Quote |
Chart |
News |
PowerRating) 19.96

GG rounds out my basket of gold stocks. I like the action. I like the steady
angle toward its recent high at 21.06. A rise above that line will inspire
lots more buying. The macro pattern expressed by the gold and metals sector is
bullish. They are coming off a correction. By dips in bull markets and delight
in the reward soon coming.

Cadence Design
(
CDNS |
Quote |
Chart |
News |
PowerRating) 16.35

CDNS just recently moved to NASDAQ in case you didn’t notice. It is a stock
that ought to be noticed and I noticed that it is angling toward the top of
its base and ready to break out. It is so close that it ought to be paid
attention to so a toe in the water is all you need right now and that forces
you to watch it.

Intersil Corporation
(
ISIL |
Quote |
Chart |
News |
PowerRating) 24.55

How many months have I been involved in this stock and look at it today? Wow.
It has performed in stunning fashion. The outcome kind of snuck up on you
didn’t it? Be honest. It did to me. It really snuck up and paid me well. I
knew this stock had the advance in it. I spotted that months ago as it rose
above a key line. Now it is well on its way to challenge the 30 level and that
is the big wall it will ultimately come up against. That wall is at 30. Today
the stock trades under 25. Still get a good bang for the buck. I am in it and
am inclined to add more above 25. Place the stop at 21.49

Yum Brands
(
YUM |
Quote |
Chart |
News |
PowerRating) 49.54

I don’t dine at KFC cause it is greasy and will prevent me from living to the
ripe old age of 104. So I avoid junk. That means nothing. Just felt like
saying it. Yum Brands sells junk. Crap. Garbage. And with the potential
pandemic break out of avian flu do you think lots of Chinese are going to run
to there nearest KFC for some carry out? Forget about it. All what I just said
means absolutely nothing. It’s just a story I am making up. What really counts
is the price pattern displayed on a chart. That is what really matters. That
is where the truth is. So what is the truth about YUM? It is in the beginning
of a decline and ought to be sold short. That is the truth about YUM. How do I
know this? By what authority do I have to say this? It is trading below all
key inflection points. It has completed a major top formation. If avian flu
breaks in a meaningful way YUM will lose half its value. Perhaps.  It is
a timely short.

Coca Cola
(
KO |
Quote |
Chart |
News |
PowerRating) 42.18

Here is a way to make money. Forget about it as a long-term investment to play
long. It is not suitable to anyone’s portfolio on the loving side. KO is a
lousy long. It is a decent short and the current decline could get serious if
the stock falls below 41.25. Love it short. I would add to the short at that
point.

Cognizant Technology Solutions
(
CTSH |
Quote |
Chart |
News |
PowerRating) 45.21

This one is ready to fall. It is worth taking a stab at it. I am. I am short
this stock and it is especially attractive closing below 45.If it closes below
45 it will likely work. The odds get better. Then go for it harder and nail it
while it drops. Look at the chart. Gaze at it for a slow minute. Take your
time and see the top about to complete. CTSH currently trades below its key
inflection points. Not way below. Just below. When is the best time to sell a
stock short? The best time to sell a stock short is at the outset of a
decline. That is what is happening right now in CTSH. Place the stop at 47.01.