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

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