If you scroll back through a lot of these post you’ll notice that after the successful pull backs on some of these short opportunities they’ve consolidated for a day or two and head right back up making new highs. This is extremely bullish, most of the times when I scan I look for stocks that are up substantially to take advantage of a correction (sell off, shake, profit taking, knocking out stop losses). As detailed in all of my post this isn’t recommending a stock for a long term short, only to take advantage of the correction. I feel safer taking an opposite position on a stock once it shows its weakness than buying it once if its been up 40-50% in just a few days (normally within the past 10 days). That’s not to say after it consolidates I won’t buy for a breakout - and that’s the topic of todays post. If you go back the past 3-5 months I would have never suggest that because no moves were sustaining, now that most of the big stocks (BIDU, GOOG, AAPL, IBM) have reported investors are starting to be a bit more optimistic again and stocks are beginning to reflect that. Such as KOG, UNS, CSI, BEXP, DGLY.

A few breakouts to watch: VSCI HDSN WMG

VSCI - breakout of previous highs knocking out 52 week highs here. This may have a magnet towards $5.00. Watching for a short on any gap, looking for the ‘gap and trap’ technique. I’d like to see a much bigger move before shorting - ideally over 5+ before it corrects back to the $4.50 range. Additionally, in light of the above paragraph I’d look for consolidation around the $4.30-$4.50 range if you are looking for a long position.

HDSN beautiful move, extremely bullish. Last run this moved up to $4.00, if $2.25 support can hold I’d expect $3.00 short term.

WMG - this has been consolidating for the $9 break, watch for the $8.70 break.

I will post a scan for tonight in a bit!

Tags: Breakouts, HDSN, VSCI, WMG

This entry was posted on Monday, April 28th, 2008 at 10:05 pm and is filed under NASDAQ, Plays, Stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.