Jim Whitner, a hedge fund manager whom
I interviewed a few months ago, keeps himself on the path toward continual
improvement by saving the charts of the best-performing stocks. By doing this,
he’s able to go back and review the characteristics that the winners have in
One stock that may turn out be worth reviewing is GSI Lumonics.
On June 29, GSLI broke out of a classic cup-with-handle pattern on
explosive volume. That alone was a very positive indication for
intermediate-term traders. From there, we saw a three-week consolidation above
its 20-day moving average. Volume was pretty tame as the stock moved sideways,
suggesting that traders were holding on to their shares. Today, July 20,
GLSI is breaking out from the consolidation and suggesting that GLSI’s late June
breakout was likely not a flash in the pan and that the stock has the potential
legs to move even higher.