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