Yes, I love to imagine ideal situation for every stocks, for me the correct buypoint is half of the work.

D.

This is another example of nice potential "ideal situation" I have in my mind.

Take AXE for example: it's a Canslim stock with a potential cup and handle on its chart. Imagine if it retrace a little more and go down with low volume in the next days and then spike up again with nice volume to complete its cup and handle pattern, I'll happy if it will happen. Cup with handle is one of the most solid pattern for a canslim stock. So, I just wait for it to happen. It's so simple to say and so difficult it'll happen in reality. But i have faith.

D.

dan. this is not a good cup with handle.

look at the volume in the base. see all the above average trade. that is not good.

also look at a weekly. look at how extended it is.

this chart is not as pretty as it seems. there are flaws everywhere.

AXE could go higher but in this market, with the flaws in the base and V shape of the breakout even if it forms a handle I would not want to go long this stock. If you search my blog you will see I was long this stock before. It is not acting right, even after this big move up on great volume. It could go a lot higher but the risk/reward is not in balance.

I looked hard at it one more time. I do like how the volume dried up near the end before it broke out. Something just doesn't look right about it.

I could be wrong. We will see.

It's because the right side of the cup of AXE it's too fast. Is it?

D.

Yes. Also I have seen traders talk about this stock in chat rooms more often than when I was first in it.

When it is obvious to everyone it isn't probably the best long to take.

CTCI
HSMY
ICLR

NBL may want to run from here

that BDCO sure is looking nice. Going to need a nice long sideways base before I trust any breakout on this stock. It is building a nice long term pattern and you can tell it wants to run but the darn stock is so wild and volatile that even a long here subjects you to a NORMAL 25% pullback. It needs to build a big long properly formed base before I trust this stock. So pretty. So pretty.

I wouldn't mind going long IMA but look at how many times this chart takes a trip below the 50 dma. This chart finds support so little at the 50 dma that how can you trust a breakout's pullback to hold this line? Starting to get pretty and in the right sector but this chart is nuts.

Any thoughts on IIG ?

Still waiting for it to do something. Sweet base. But it could still breakdown to the downside on heavy volume. Seems to be at an important inflection point. A breakout to the upside here would be VERY NICE. Right now no action should be taken but dang CDChilds this is a stock I shall put on the radar screen.

Great selection for review.

yieks what happen to BSML today...... IIG is the 1 stock that i dont trust simply becasue i knew it well when i was on sellside(see 2005 meltdown on IIG chart) and that is 1 sketchy,sketchy co. .......i guess i am just adding opinions/noise to this but it is very unpredicatble business model, and mgmt has been sued, co. bad business practice and sued by individual states,etc..........anyways, you can see i dont like IIG and will never buy it....sure maybe it could go up but i would err on side of caution with this one, they burned alot of big money investors last year

CYBS
NCTY

How about DFC ?  Hasn't broke out yet but good volume today.  Looking at a long term chart looks like a possible 6 year CWH.  I am not sure how the whole FED rate thing (technical term) affects their business.  Your thoughts?