Market Talk with Piranha is currently moving to its new home at chrisperruna.com. The new site is up and running but many of the posts need editing as the images and stock charts did not transfer successfully (thanks blogger). I will post all new entries to both blogs – Thank you for your patience while I make this change!

Friday, February 03, 2006

Interesting Stocks with 15% of a New High

Today’s mini-screen was developed due to the two day exercise I performed on the typical daily screens on the main site. Instead of screening for stocks making new highs, I have decided to focus on stocks that are within 15% of a new high that possess strong fundamental and technical characteristics. I will review some of these stocks for the upcoming MSW Index this Saturday but we will not know if any of them are strong enough to make that list until tomorrow. Many of the stocks listed below are building bases are have started to form new trends that are suggesting higher prices in the coming weeks and/or months. Remember, the strongest stocks will land a spot on the MSW Index so don’t buy blindly because I post up a “mid week special screen” or a “mini-screen” on the blog. You still need to do your homework and determine if a specific stock will fit nicely into your portfolio and style of trading. I have eliminated all MSW Index stocks from the list below since I will cover them in depth tomorrow.

The DOW and the NASDAQ are flirting with their respective 50-d moving averages as they are still trading sideways when viewing a multi-year chart. The NASDAQ has been slowly creeping higher within the sideways pattern but has not launched a significant up-trend since 2003. We know the individual stock market leaders took a breather yesterday and the MSW Index stocks dropped more than the major indices but many of them did so on below average volume (a good sign). Friday will be important as some of our stocks will test support levels and/or moving averages. Today’s trading results may eliminate a few stocks from the Index, opening up positions for new candidates.

Interesting Stocks within 15% of a New High:


  • CEPH – 76.00, extended on the weekly chart but about to challenge the $77 high set on the point and figure chart

  • BBBB – 29.66, strong support this week with an 11.92% gap-up gain to recover the 50-d m.a. The support at the 200-d m.a. was very encouraging.

  • CLX – 63.08, forming a 10 month cup shaped base on the weekly chart that should form a handle before you look to take establish a position. If it breaks out, the stock will also qualify for the $60-$100 run

  • ANF – 69.27, forming an irregular cup shaped base that is currently forming the right side with higher lows on the P&F chart (support at the moving averages)

  • GRMN – 64.42, flirting with the 50-d m.a. as the stock sits in the $60 range but is not a an official $60-$100 candidate until it can breakout above the recent peaks set at $70.07 and $68.88

  • LRW – 25.54, set up for a triple top breakout with a move above $27. Solid support from the 200-d m.a. this week with a strong 8.27% advance on Thursday

  • CENT – 51.29, forming a six month cup shaped base with an obvious pivot reversal at the bottom of the cup in November

  • CNTF – 16.90, an interesting IPO from last fall that is starting to move higher with support from the 50-d m.a. On the weekly chart, a 10 week base has formed.

  • CERN – 48.35, an eleven week flat base has formed (it can also be considered a consolidation period after the larger up-trend in 2005. A triple top breakout will occur above $50

  • COGO – 9.11, a risky low priced stock that can make a double top breakout on the P&F chart with a move above $9.50 (risky play with an ideal entry closer to the 50-d moving average)

  • MCO – 63.95, when the stock reached the $40’s, it traded sideways for 7 months. It may do the same in the $60’s so if you make am options play for the $60-$100 run – give it time (at least 9 to 12 months).

  • PMCS – 9.76, not a typical stock selection for any MSW screen due to the larger overhead resistance that dates back many years but it did break the recent down-trend and has recovered the 200-d m.a. In my opinion, the risk is present but the chart suggests the stock is going higher.

Piranha

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