Tuesday, June 8, 2010

My plan for tomorrow...

I have narrowed down the stocks I want to own to two stocks: DECK and CMG. Need less to say, they both meet all the CANSLIM requirements. In fact they are both in the top 5 of the IBD 100 with CMG ranked 4 and DECK ranked 5.

Now you may be asking why did I choose CMG and DECK over the other top three stocks or any of the other IBD 100 for that matter. The reason has to with the quality of the bases they have formed during the recent correction and the proximity of the most recent close to the 52-week high. NFLX also has good fundamentals but the base is too short and slopy in my opinion although it may still work.

Here are the charts of both stocks with intended entry price and stop loss levels indicated with white lines:

DECK has formed a 6-week double bottom with handle base.

While CMG has formed a 6-week ascending base.
I will be trading these stocks with tight stops just below pivot lows.
Good luck and good trading!


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