Loaded And Ready

Welcome to this week’s edition of The Growth Stock Report!

Traders,

We’re all shook up for the week as the major indexes gave us something new to consider.

The bottom line is we have plenty of evidence to commit to buying this market, though will be quick to take profits due to lack of conviction over long-term potential.

Our current position:

VERY CAUTIOUS, USE SMALL PROFIT TARGETS!

In this week’s edition you will find:

Where We Are:

Charts courtesy of Stockcharts.com.

Technically speaking, The Dow 30, S&P 500, and Nasdaq are poised for new highs. We have a bona fide “cup-and-handle” formation on the weekly chart of Dow, coupled with underlying strength in banking and semiconductor stocks to make this a pretty picture.

It’s important to see confirmation from the finance and tech sectors. Without it, we tend to get sloppy markets from less significant leadership.

Volume: The past week gave us a very heavy day of distribution across the majors Wednesday – though Friday marked a comeback as key prices were taken out to the upside on decent accumulation. Whenever we see a bearish signs erased we get bullish.

Leadership: The top 10 industry groups from the 6 month RS screen are:

  • HEALTH CARE PLANS
  • RESIDENTIAL CONSTRUCTI
  • RESORTS CASINOS
  • OIL GAS DRILLING EXPLO
  • LODGING
  • INVESTMNT BROKERAGE-RE
  • CONSUMER SERVICES
  • STEEL IRON
  • DATA STORAGE DEVICES
  • OIL GAS EQUIPMENT SVCS

New Highs vs. Lows: The number of new highs posted on the major exchanges gave us a bullish indication, though showed some signs of slowing as last week’s numbers were not matched. The number of new lows for tech stocks gave rise to the bearish argument.

What We Like:

As new highs continue to clock in for energy stocks, we continue to be positive on the sector. As highlighted for a couple of weeks ago, KCS and XTO have made nice moves for us.

Keep in mind that energy stocks should be treated differently from other sectors as they hum to a different tune than the major indexes.

The same goes for all commodity related stocks, which brings us to what we like this week:

Steel Dynamics meets all of our fundamental requirements, and its chances of breaking out successfully are supported by STTX, which should be watched carefully for any failure here will likely affect STLD:

What Was Important About Last Week:

  • Carly Fiorina resigned as chairman and CEO of Hewlett-Packard. The stock exploded higher.
  • Disappointing earnings report from Cisco Systems. The stock moved sideways for the week.
  • American International Group, the world’s biggest insurance company, reported positive fourth-quarter earnings. The stock moved nicely higher.
  • Dell, the No. 1 computer maker, reported fourth-quarter earnings that beat forecasts, but reported disappointing sales and issued a weak forecast. The stock was hit by heavy selling.

What We Are Watching For This Week:

Key earnings releases:

  • MONDAY: no market movers.
  • TUESDAY: AMAT, CEPH, DE, JUPM.
  • WEDNESDAY: JNY, MDT, TK, KO.
  • THURSDAY: IVGN, INTU, NXTL, SFY, WMT, WFII.
  • FRIDAY: CBP,

On the economic front we have potential market movers with:

  • MONDAY: nothing.
  • TUESDAY: Business Inventories, NY Empire State Index, Retail Sales.
  • WEDNESDAY: Housing Starts, Industrial Production, EIA Petro. Status.
  • THURSDAY: Import/Export Prices, Jobless Claims, Leading Indicators, Philadelphia Fed.
  • FRIDAY: Producer Price Index, Consumer Sentiment.

This Week’s Scans:

Breakout Watch:

Setups, Stocks Ready To Breakout

StocksForming New Bases

Potential Shorts

Comments:

We give a heavy caution to entering shorts.

This Week’s Word On Discipline:

What it lies in our power to do, it lies in our power not to do. — Aristotle

DISCLAIMER: Past Performance Is Not Indicative of Future Returns. All commentary provided by The Growth Stock Report is for educational purposes only. The analysts and employees or affiliates of The Growth Stock Report may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained in The Growth Stock Report is governed by the Terms and Conditions of Use. Opinions expressed are our present opinions only. This material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and that it should be relied upon, as such.

After The Fed

Welcome to this week’s edition of The Growth Stock Report!

Traders,

It’s been a wild week on the heels of a Fed announcement to raise interest
rates a quarter. As far as U.S. equities are concerned , everything did well.
Everything looks like it turned around. Could it be that easy??

Our current position:

VERY CAUTIOUS,
USE SMALL PROFIT TARGETS!

In this week’s edition you will find:

  • Where We Are
  • What Was Important About Last Week
  • What We Like
  • What We Are Watching For This Week
  • This Week’s Scans
  • A Word On Discipline

Where We Are:

Charts courtesy of Stockcharts.com.

Technically speaking, we’re seeing broad sector participation
in this quick change of direction for the market. Going into the weekly charts
it appears the majority of issues have put in healthy reversals at the critical
40-week ema’s and tests of previous bases.

Energy and homebuilders had particularly strong
weeks:

.

Volume: We now have booked what Mr. William O’Neil calls a
Follow Through Day
. Friday’s high volume accumulation for the Dow and
S&P 500 put the indexes up 1.16% and 1.10% respectively. This indication
has a 75% accuracy rate for signaling a significant change of direction in the
market.

So we ask ourselves this key question: Do we take the signal knowing we have
a good historical indication and go long? What’s so different about this market?
The answer is we compromise. We believe the overall trend of
the market has a good chance of trending sideways like it did in the 60’s and
70’s.

We’re looking to book profits at 10 and 20%, and not bank on much else. Good
money management allows us to take half a position off after 20%, then let the
other half ride with a break-even stop.

Leadership: The top 10 industry groups from the 6
month RS screen
are:

– HEALTH CARE PLANS

– RESIDENTIAL CONSTRUCTI

– CONSUMER SERVICES

– RESORTS CASINOS

– STEEL IRON

– OIL GAS DRILLING EXPLO

– TOP 100 STOCKS

– MULTIMEDIA GRAPHICS SF

– LODGING

– OIL GAS EQUIPMENT SVCS

New Highs vs. Lows: The number of new highs made for the
week gave us an indication that this market is alive and well. This indicator
more than any other has given us a steady bullish signal.

What Was Important About Last Week:

The Fed raised rates a quarter. The market was not surprised.

The employment situation was mildly disappointing, but the
market’s strong upside performance afterwards was a positive. .

Money inflows was a major theme of the week as AMG
Data Services
issued a strong report for new money coming in.

As a group the Internet sector is lagging the overall market.
This is the sector that really drove us higher over the last year and a half,
and is giving us a sign that sector rotation is in play. Consumer staples and
more defensive issues are showing their durability.

  • Amazon.com (AMZN) put up dissapointing numbers and took a nose dive on the
    week.
  • Websense (WBSN) put up “happy” numbers and hit a new al time high.

What We Like:

We have some nice bases formed for our GSR stocks.

Remember, we first screen our candidates for top fundamental criteria then
look for opportunities to set up from the technical perspective.

Looking to burst north we have two healthcare stocks to highlight:

Mannatech (MTEX) and Palomar Medical Tech
(PMTI). Watch for PMTI’s earnings release Thursday before the market open.

What We Are Watching For This Week:

Key earnings
releases:

  • MONDAY: Sohu.com (SOHU), Triquint Semi.
    (TQNT), WellPoint Inc. (WLP)
  • TUESDAY: Taser International Inc. (TASR), The Cheesecake
    Factory
    (CAKE),
  • WEDNESDAY: AIG (AIG), Garmin Ltd. (GRMN),
    Rare Hospitality (RARE), Ultra Ptroleum
    (UPL), WebEx Communications (WEBX), XTO
    Energy Inc.
    (XTO).
  • THURSDAY: Accredited Home Lenders (LEND), Aetna
    (AET), Cognizant Technologies (CTSH), Dell Inc. (DELL),
    Palomar Medical Tech (PMTI), Pixar Animation
    (PIXR), The May Depratment Stores (MAY), XM Satelite
    Radio
    (XMSR).
  • FRIDAY: Proposed – Gerdau S.A. (GGB), Noble Energy
    (NOBL),

On the economic
front we have potential market movers with:

  • MONDAY: none
  • TUESDAY: none
  • WEDNESDAY: U.S. Wholesale Trade. U.S. EIA Petroleum Status.
  • THURSDAY: U.S. International Trade. Jobless Claims. Treasury
    Budget. Money Supply.
  • FRIDAY: none.

This Week’s Scans:

Breakout
Watch:

Comments:

New Breakouts on high volume: KCS.

New Breakouts on low volume: NUE

New Highs: SGTL, AFFX, CNQ, JAH, UCL, AEOS, SC, HOV, SWN, AMX, HYDL, WBSN,
VLO, AVID, FMD, PHM, MTH, SPF, MDC, EOG, TOL, FDG, UNH, MUR, COP, XTO.

Setups,
Stocks Ready To Breakout

Comments:

Ready to explode: POG, MTEX, STLD, UPL, EXPD

Stocks
Forming New Bases

Comments:

none

Potential
Shorts

Comments:

Though we have a coupe of potential shorts we give a heavy caution
to entering shorts
. We’d prefer to see an overall market breakdown
below current support.

This Week’s Word On Discipline:

“It is not the mountain we conquer, but ourselves”. — Sir
Edmund Hillary

DISCLAIMER: Past Performance Is Not Indicative of Future Returns. All commentary provided by The Growth Stock Report is for educational purposes only. The analysts and employees or affiliates of The Growth Stock Report may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained in The Growth Stock Report is governed by the Terms and Conditions of Use. Opinions expressed are our present opinions only. This material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and that it should be relied upon, as such.

Where We Are

Welcome to this week’s edition of The Growth Stock Report!

Traders,

As earnings season continues to hum along the markets marked a two-month low
Monday before pushing higher throughout the week only to end Friday with heavy
selling. To sum our disposition up at present:

CASH.

We see no invitation to go long or short, and are waiting for a signal to develop.

In this week’s edition you will find:

  • Where We Are
  • What Was Important About Last Week
  • What We Like
  • What We Are Watching For This Week
  • This Week’s Scans
  • A Word On Discipline

 

Where We Are:

It’s earnings season, and so far we’ve seen what appears to be generally good
news from key companies – but the market isn’t applauding. Markets that sell
on good news are suspect.

Technically speaking, the U.S. equity indexes are trend-down, and just where
or if we stop to reverse or consolidate is anyone’s guess. We remain objective
and under no circumstances have ruled out the prospects of a long-term decline
in the markets.

Volume: Institutions have been getting rid of stocks, especially in the tech
sector.

Leadership: The top 10 industry groups from the 6
month RS screen
are:

  • HEALTH CARE PLANS
  • RESIDENTIAL CONSTRUCTI
  • CONSUMER SERVICES
  • RESORTS CASINOS
  • LODGING
  • MULTIMEDIA GRAPHICS SF
  • DATA STORAGE DEVICES
  • INVESTMNT BROKERAGE-RE
  • FOREIGN REGIONAL BANKS
  • INFORMATION DELIVERY S

New Highs vs. Lows: The market is still experiencing upside
sponsorship with new highs continuing to notch in and the number of losers remaining
relatively quiet.

Recent heavy selling on top earners compliments the institutional selling them
that has kicked off this year.

 

What Was Important About Last Week:

Microsoft (MSFT) beat and guided higher – the stock put in
a modest gain on accumulation.

American Express (AXP) put up solid earnings – the stock put
in a decent accumulation week.

Merrill Lynch (MRL) disappointed – the stock remained little
changed for the week.

Texas Instruments (TXN) beat expectations – the stock put
in an impressive move to the upside.

Unites Parcel Service (UPS) gave a weak forecast – the stock
was initially hammered, though recovered to post a modest loss for the week.

Starbucks (SBUX) reported positive earnings though sold off
on extremely heavy volume.

Travelzoo (TZOO) tanked after issuing a profit warning and
the SEC gave the nod for hedge funds to dump 750,000 shares at any time.

 

What We Like:

Energy stocks are looking good with recent breakouts on COP
and MUR coupled with new highs on: EPL, FDG, MHR, NE, PGH, SFY, VLO.

Next in line to explode north we have from our top earners screen: KCS, STO,
UPL, XTO

Keep in mind it pays to wait for proper technical handles to set up on the
daily charts!

 

What We Are Watching For This Week:

Earnings
season remains the dominant theme for stocks with the following key companies
reporting:

  • MONDAY: Exxon Mobil (XOM), Walt Disney
    (DIS).
  • TUESDAY: Google (GOOG).
  • WEDNESDAY: Amazon (AMZN)

On the economic
front we have potential market movers with:

  • MONDAY: Chicago PMI, New Home Sales
  • TUESDAY: Construction Spending, ISM Index,
  • WEDNESDAY: FOMC Policy
  • THURSDAY: Initial Claims, Factory Orders, ISM Services.
  • FRIDAY: Employment Data.

From a technical perspective we are looking at the recent S&P 500 low of
1163.75 as pivotal. Bulls want at a minimum consolidation, where Bears want
the level taken out.

 

This Week’s Scans:

Top Growth
Stocks – Breakouts Intact:
Symbol
Company
AAPL
Apple Computer
AEOS
American Eagle Outfitters
AFFX
Affymetrix Inc.
AHM
American Home Mtg. Invt. Corp.
AMX
America Movil S A DE C V
ARTI
Artisan Components
BHP
Billiton Ltd.
BPT
BP Prudhoe Rty. Tr.
BXG
Bluegreen Corp.
BYD
Boyd Gaming Corp.
CEDC
Central European Dist.
*CHS
Chicos FAS Inc.
CMC
Commercial Metals Co.
CME
Chicago Mercantile hldgs.
CMN
Cantel Medical
CMX
Caremark RX Inc.
COGN
Cognos Inc.
COH
Coach Inc.
COP
ConocoPhilips
EEFT
Euronet Worldwide
EPL
Energy Partners
FDG
Fording Cardinal Coal
FDX
Fedex Corp
FFIV
F5 networks
GMR
General Maritime Corp.
HANS
Hansen Nat. Corp.
HOLX
Hologic Inc.
HOV
Hovnanian Enterprises Inc.
HYDL
Hydril
IEX
Idex Corp.
IFOX
Inforossing Inc.
INFY
Infosystems Tech.
ISSC
Innovative Solutions & Support
Inc.
JAH
Jarden Corp.
JLL
Jones Lang Lasalle
KFY
Korn Ferry Int’l.
KWK
Quicksilver Recources
LAUR
Laureate Education Inc.
LCAV
LCA Vision
MDC
MDC Holdings Inc.
MHR
Magnum Hunter Resources
MRVL
Marvell Technology Group
MTEX
Mannatech Inc.
MTH
Meritage Homes
MTLM
Metal Management Inc.
MUR
Murphy Oil Corp.
MVK
Maverick Tube Corp.
NAT
Nordic American Tanker Shipping Ltd.
NCI
Navigant Consulting Inc.
NE
Nobile Corporation
NX
Quanex Corp.
PGH
Pengrowth Energy TR
PHM
Pulte Homes inc.
PLCE
Children’s Place Retail Stores
PSYS
Psychiatric Solutions Inc.
RECN
Resources Connecton Inc.
SFCC
SFBC Int’l. Inc.
SFY
Swift Energy Co.
SGMS
Scientific Games Corp.
SGTL
Sigmatel inc.
SHFL
Shuffle Master Inc.
TEX
Terex Corp.
TOL
Toll brothers Inc.
UNFI
United Nat. Foods Inc.
UNH
UnitedHealth Group
UNT
Unit Corp.
URBN
Urban Outfitters
VLO
Valero Energy
WBSN
Websense Inc.
WCI
WCI Communities Inc.
XPSRA
US Express Enterprises
XRAY
Dentsplay Int’l. Inc.
YHOO
Yahoo Inc.
ZQK
Quicksilver Inc.

Comments:

New Breakouts on high volume: AFFX, IFOX, LCAV, MHR, MUR, MVK, NAT, SGTL, TOL,
WBSN

New Highs: ARTI, BHP, EPL, FDG, HOLX, HYDL, KWK, NE, NX, SFY

Recent Accumulation: CME, COGN, DRIV, DRS, EAGL, EWBC, GMR, INFY, RIMM, SFCC,
URBN

Recent Distribution: ADBE, ADSK, BDK, BEBE, BSTE, CCJ, CYTC, DECK, DPTI, ELBO,
LSTR, PCAR, ROV, SBUX, TZOO, USG, XEC

Failed Breakouts:

*Latter Stage Base Prone To Failure: CHS

Top Growth
Stocks Ready To Breakout:
Symbol
Company
APA
Apache Corp.
BTU
BTU Peabody Energy
CDIS
Cal Dive Intl.
CNQ
Canadian Natural Recources
CRDN
Ceradyne Inc.
CRS
Carpenter Technology Corp.
DPTR
Delta Pete Corp.
EOG
EOG Resources Inc.
EXPD
Expeditirs Int’l
*FLIR
Flir Systems inc.
HLEX
Healthextras Inc.
JAKK
Jack’s Pacific
KCS
KCS Energy
NUE
Nucor Corp.
PMTI
Palomar Medical Technologies
POG
Patina Oil & Gas
PPC
Pilgrim’s Pride Corp.
REM
Remington Oil & Gas Corp.
SFD
Smithfield Foods Inc.
STO
Statoil Asa
STTX
Steel Technologies Inc.
SYNA
Synaptics Inc.
TSRA
Tessera Technologies Inc.
UPL
Ultrapetroleum
UTIW
UTI Worldwide Inc.
VTS
Veritas DGC Inc.
XTO
XTO Energy Inc.

Comments:

Wit the red flag out we give strong caution to buying anything and recommend
tight stops and targets if you do.

*Latter Stage Base Prone To Failure: FLIR

Top Growth
Stocks Forming A Base:
Symbol
Company
CYT
Cytec Inds.
EXM
Excel Marine Maritime
GGC
Georgia Gulf Corp.
INSP
Infospace inc.
MBT
Mobile Telesystems OJSC
MUSA
Metals USA Inc.
NCS
NCI Building Systems
PETD
Petroleum Development Corp.
PKZ
Petrokazakhastan Inc.
SJT
San Juan Basin Rty Tr.
STLD
Steel Dynamics inc.
SWN
Southwest Energy Co.
TK
Teekay Shipping
TNP
Tsakos Energy Navigation Ltd

Comments:

Energy stocks are in play for aggressive base-stage buys.

Potential
Shorts:
Symbol
Company
ARO
Aeropostale
JUPM
Jupitermedia Corp

Comments:

Though we have a coupe of potential shorts we give a heavy caution
to entering shorts
. We’d prefer to see an overall market breakdown
below current support.

 

This Week’s Word On Discipline:

When it comes to investing, it is better to follow a proven system than your
emotions