Here are some of the stocks that showed up on my buy scan. We may have seen the low but it is possible that we see one more sell-off to wash the weak hands. Currently I am doing intraday trades  from the long side only. If S&P closes below 800, I'll stay on the sidelines.

If the market goes up from here these stocks should easily double. The holding period is at least 1 year (if profitable). Put these stocks on your watch list and when you see a pattern as described on the follwing link, you can buy. ALWAYS use stop losses. Stops should be somewhere between the low of the cup and low of the handle. This pattern is described in detail in William O Neil's book, "How to make money in stocks". You can probably get it from your local library or buy one...it is worth the money. If you are patient and wait for the right time you should do pretty good at the end.

If you find other stocks that have a similar pattern, please post it here.

http://www.chartpattern.com/cup_handle.html

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:cup_with_handle_cont

I won't have time to post everyday but will try to answer any questions on weekends.

Thanks for all the emails.

Happy Investing.

Scroll down for the list. Not sure why there is such a huge blank space.

Rank	Symbol	Company Name	Last Price
1	GHM	Graham Corp	12.98
2	AAPL	Apple Inc	123.9
3	ANR	Alpha Natural Resources Inc	19.7
4	GOOG	Google Inc	389.49
5	HXM	Desarrollaxdora Homex DR	21.86
6	HP	Helmerich & Payne Inc	32.76
7	NOV	National Oilwell Varco Inc	31.5
8	PCLN	Priceline.Com Inc	96.16
9	HANS	Hansen Natural Corp	39.89
10	NBL	Noble Energy Inc	60.69
11	CMI	Cummins Inc	33.38
12	DRQ	Dril-Quip Inc	34.1
13	BWLD	Buffalo Wild Wings Inc	41.84
14	SPAR	Spartan Motors Inc	6.93
15	HITT	Hittite Microwave Corp	37.07
16	VSEA	Varian Semiconductor Equipment Associates Inc	23.91
17	AMX	America Movil ADR Rep 20 Series L Ord Shs	33
18	ENG	ENGlobal Corp	6.19
19	MT	ArcelorMittal ADR	27.23
20	AMTD	TD Ameritrade Holding Corp	16
21	DNR	Denbury Resources Inc	16.48
22	OII	Oceaneering International Inc	43.94
23	DLB	Dolby Laboratories Inc	36.81
24	TNB	Thomas & Betts Corp	28.01
25	SNDA	Shanda Interactive Entertainment Ltd	48.03
26	SOHU	Sohu.com Inc	52.43
27	WAB	Wabtec Corp	38.12
28	GCO	Genesco Inc	21.76
29	FTI	FMC Technologies Inc	36.13
30	VMI	Valmont Industries Inc	62.2
31	NTES	Netease.com Inc	30.91
32	AIT	Applied Industrial Technologies Inc	22.09
33	WBD	Wimm-Bill-Dann OAO	44.31
34	WDC	Western Digital Corp	21.16
35	MCRS	Micros Systems Inc	20.61
36	CERN	Cerner Corp	47.42
37	GYMB	Gymboree Corp	33.43
38	RSTI	Rofin-Sinar Technologies Inc	19.29
39	BRY	Berry Petroleum Co	16.92
40	CNQ	Canadian Natural Resources Ltd	48.94
41	WIT	Wipro Ltd	9.12
42	CHRW	CH Robinson Worldwide Inc	53.35
43	BMI	Badger Meter Inc	37.69
44	CEO	CNOOC ADR representing 100 Class H Shares	115.55
45	BKE	Buckle Inc	35.2
46	LNN	Lindsay Corp	38.32
47	DAR	Darling International Inc	6.08
48	CTRN	Citi Trends Inc	23.77
49	MCHP	Microchip Technology Inc	22.25
50	SNX	SYNNEX Corp	19.39
51	ARO	Aeropostale Inc	32.89
52	TRAD	TradeStation Group Inc	7.79
53	SCHW	Charles Schwab Corp	17.84
54	NKE	NIKE Inc	54.73

eminitrader,
two questions:
First, I am trying to learn about the cup and handle pattern you are referring to. What time frame are you looking at it? Hourly, Daily, weekly etc.

Second,
I would like to request you have a look at FEED. I have been looking at this stock for some time and I know it is under $5 but it looks quite promising. I have attached a chart below. You can see that the stock has rallied every time it bumped into the 100-day MA. It looks like it's going to hit it again tomorrow. A bounce from that might give it some upward momentum on the short run. What do you say?

 
regards, FF

Bisal,

I don't know what to say except Good Luck. They are cheap for a reason. Where the stock was in the past is not important, we should be concerned about where it will be in the future.

FF,

I usually look at daily charts for the pattern but use the weekly to determine the trigger. Once the handle is formed, I look at the previous week's high and buy it when the price gets to 1% of the high. If the price is above 5% of the high I let it go. The attached chart is for PCX which I had recommended on Sunday. The stock rallies to pt. A and sells off, then again it rallies to pt. B and we see another pullback. The pullback is less than the previous pullback from pt. A, so this makes the formation of a cup and a handle. I noticed this on Sunday and the last week's high was $5.24. So my trigger in this case was 5.24 X 1.01 = 5.29 and the maximum buy price was 5.24 X 1.05 = 5.50. This meant that I'll buy once price gets to 5.29 and the most I was going to pay for the stock was 5.50. Once you are in it put your stop and enjoy the ride.

Hope this helps!!!

 

 

Another stock that I recommended was DRYS and it hit the trigger price yesterday. I was thinking about buying it but changed my mind at the last moment. If someone wants to buy it, put a buy-limit at 7.38 and see if you can get the price, otherwise let it go since it is above our max buy price.

Selling 1/2 of PCX at 7.70...if price gets there. Will keep the other 1/2 for the time being.

45% in a week is not bad....

Hey Emini, I checked all the stocks that u have suggested , wow except for one u nailed it..Hope to get some more suggesstion next week as well..

 

My ACAS & ALD going nuts today ..Have a good weekend ppl..One of the best week for me in a while..

Cutenepali......

The four stocks that got to the trigger prices were PCX, STV, DRYS and LCAV. LCAV was a recommendation from a friend, it did not have that C&H pattern, so I closed it with a small profit. Rest of the stocks never hit the trigger price. It is very important that you buy once the trigger price is hit.....not before that. STV is up 30% today. Since it is so strong I'm going change the "target 2" to "target 1", so I'll take half the money at 16 and ride the other half.

Did someone give my first post a 1 star??????

emini...

PCX was a huge ROI for me.. Also, I was able to dig in close to 45% in last four months wait frame on SYMC, which I would take it anyday anytime. What are your picks in coming week. I am nervously looking forward for the stress result from Treasury in coming week. This was a great sell of friday for me, better than many more in past. I have a good understanding of trading but not even close in making career off of bull market like you guys.... Sajha has been relatively good resource for me or maybe-- just right capital investment during wash off times? Like everyone says,"It's a random walk in wall street".

Missed out big time on STV though....bummer....

Again, look forward for some picks for coming days. Happy Friday!!!

Emini

Great 30% today stv..missed the rally....I am giving u 5 star...

interesting discussion

 

Here are the picks for next week. Try to figure out the trigger price and stop.

My only concern is that since we had a good week last week, people might take excessive risk. We can always be wrong so just be careful regarding how many shares you buy. 200-300 shares of 3 stocks should be enough.

I will post the trigger prices later.

CX

GLNG

GTI

HTZ

BAS

MT

AGYS

MTL

NKTR

Eminitrader:
What should be buying and selling price for NKTR and how long we should hold it in your opinion? Your suggestion will be appreciated in advance.

Emini

Looks like the rally is over now...I think we will see 5500 soon...what do u think.....

One of the things that many new people struggle is regarding how many shares to buy. Let's assume that you have $5,000 in your account. You do not want to risk more than 5-10% on any trade. The larger your account is, the less you should risk as a % of your capital.

Let's assume that the trigger price is $5 and the stop is at $3, that is a risk of $2 per share. Since you are risking $250 - $500 per trade, you should buy 125 - 250 shares only. Once you get 30-40%, you should take half off.

 

Please now post at what prices these shares should be purchased and how long they should be held (or the price limit)?

You are doing great service to Nepali communities who are wanna be investor.

Thanks in advance.

 

Here is the final list. I changed the trigger price to 2.5% instead of 1%. DO NOT BUY before it touches the trigger price.

	Trigger Price	Max Buy Price	Stop
CX	$8.00	$8.19	$5.60
GLNG	$5.84	$5.99	$4.09
GTI	$9.69	$9.92	$6.78
BAS	$11.43	$11.71	$8.00
MT	$27.07	$27.73	$18.95
AGYS	$7.53	$7.72	$5.27
MTL	$6.51	$6.67	$4.56

FF,

I looked at FEED and it seems ready to move higher. Looks like you are buying the bounce of the 100 dma on hourly.....I usually don't like to do that but if it is working for you go for it.

Trigger will be $4.15 and stop at 2.50.

Eminitrader, what would be the target price for those stocks? How to determine target price. Please explain. You are doing a great job.

I am still interested in buying STV, do you suggest that?

How do you rate infrastructure stocks? MIC?

Eminitrader,
thanks.........I already bought some FEED at 3.60 with the bounce from the 100 dma. And some CX at 8.10. The stock looks like it's on the move. Too bad I missed AGYS....that puppy is already up 14%. :(
And reiterating everyone's words again, we owe a lot for your suggestion and tips.

Regards,
FF

 I bought BAS, CX & MTL

Missed out on AGYS....

Just wanted to let you guys know that I did not buy anything today....but it seems that my picks are doing good. I usually do not trade stocks but focus on futures because there is more bang for the buck. I still own PCX and STV though. These were my first buys in more than a year and not a bad way to start. PCX and STV are over extended so DO NOT buy here.

You guys need to start doing some research. Since I do not trade stocks frequently I hate to spend 4-5 hrs. every weekend looking at charts. You guys need to start doing that and post it here and I'll give my opinion. You can't just sit there and expect me to do all work and post the picks. This will benefit you too because sooner or later I'll stop posting. I am trying to teach you how to fish and not give you a fish.......Hope this makes sense.