Tuesday, March 30, 2010
CNAM has formed a very beautiful pullback to the 20 day MA and is very buy-able on move past yesterday's high. I already entered long at $8.42 off of the 5-min chart, as I posted earlier, in anticipation of a reversal.
I expect to see strong follow through tomorrow for two reasons. Firstly, the FXI had a very strong session today indicating that the Chinese stocks may still have some upside left in them. Secondly, CNAM reports earnings after market close tomorrow. So I am anticipating a rally into earnings which will show that earnings are likely going to be good and will also give me a profit cushion if they aren't. However, if there is no follow through tomorrow, I will exit before market close and before earnings are announced.
I have come across two interesting stocks to add to your watch lists.
1. ISCO broke above $2.00 and out of a 7-week base four days ago. It has since moved up powerfully on good volume.
2. SERV made a monster move today. After being up more than 200% earlier in the day it eventually closed up just over 100%. I would have liked to see SERV close at or very near the highs of the day but the prior price action and massive move on real news of a contract deal are enough to force this stock onto my watch list.
These two stocks could form buy-able pullbacks in the near future and then continue to explode. So add them to your watch list and keep a close eye on them.