Ken Gruneisen
Founder & Contributing
Writer to CANSLIM.net
Lighthouse Point, FL
BMC Sotware Inc. (BMC) recently triggered a fresh technical buy signal with a breakaway gap on 5/16/08 allowing this high-ranked leader surge above its latest pivot point with a considerable gain on over 3-times average volume. The healthy action helped this stock appear in yellow in the Friday, May 16, 2008 CANSLIM.net Mid Day Breakouts Report (read here) with a $37.15 pivot point and a $39.01 maximum buy price and the following note: "Y - Reported impressive earnings news and gapped up today for a considerable gain on heavy volume, blasting above the $37 area to new multi-year highs. It has a strong quarterly and annual earnings (C & A criteria) history, but its sales revenue growth rate has been below the +25% guideline. That suggests there is not extremely great demand for a new product or service (the N criteria), however its solid fundamentals and good leadership (the L criteria) from other Computer Software - Enterprise issues are nice reassurances along with a healthy market (M criteria) environment."
Concerns would be raised by deterioration under recent chart highs which would have the effect of technically negating its latest breakout. The next important support level comes into play at its 50 DMA line. BMC sports strong ranks; an Earnings Per Share (EPS) rating of 93, and a Relative Strength (RS) rating of 85. As always, limit losses per the 7-8% sell rule, and never hold a stock if it falls more than that much from your purchase price.
Activision Inc. (ATVI) is stubbornly holding its recent gains, consolidating quietly after its recent breakout and gains for new highs on heavier volume. ATVI sports strong ranks; its Earnings Per Share (EPS) is 90 and its Relative Strength (RS) rating stands at a very firm 97, a sign of strong technical action. The number of top-rated funds owning an interest rose from 253 in Jun '07 to 298 in Mar '08, which shows increasing institutional demand (the I criteria). Concerns would be raised by any weakness leading to a close under its old chart highs near $30 which would have the effect of technically negating its latest breakout to new all-time highs.
This stock was first featured on Friday, May 09, 2008 in the CANSLIM.net Mid Day Breakouts Report with a $28.04 pivot point and a $29.44 maximum buy price. It was previously noted that the stock "quickly blasted more than +5% above its pivot point, however, in a bullish market environment, break-away gaps are one exception where it has been noted that a stock can be considered buy-able as much as +10% above the pivot. Patience may allow for shares to be accumulated on light volume pullbacks toward prior chart highs. The usual sell discipline applies, and investors should always limit losses per the 7-8% sell rule, and never hold a stock if it falls more than that much from the stock's purchase price. Note that the gains followed the company reporting another very healthy quarter of big sales revenues and earnings improvement. Whenever a stock trades above its pivot point with a considerable gain on at least +50% above average volume a technical buy signal is triggered. Heavy volume behind a stock's advance provides the critical proof that institutional investors (the I criteria) are accumulating shares. That increases the chances of a sustained advance and meaningful profits for disciplined investors." Always limit losses per the 7-8% sell rule, and never hold a stock if it falls more than that from your purchase price.
CrisisOasis Channel Does the economy have you feeling blue? Tune in here and releax to anever-ending stream of soothing sounds and remember that WBBM Newsradio 780 is watching the economy and reporting to you 24 hours a day.
Chicago's Reputation On The Run The Chicago Marathon Race director, Carey Pinkowski, says this is a good example of how Chicago could handle the Olympics.The 26.2-mile course starts in Grant Park near Buckingham Fountain, then heads to the North, West and South Sides before returning to Grant Park. A CBS Radio report.
Transit Hikes At Issue The Chicago Transit Authority may not be the only transportation agency planning to hike its fares. WBBM's Craig Dellimore reports. RTA Chairman Jim Reilly and CTA President Ron Huberman are the guests on WBBM NewRadio's At Issue program, heard tonight at 9:30.
Weis Attends Roll Call In a move to shore up morale among rank and file police officers, Chicago Police Superintendent Jody Weis attended a roll call for officers last night across the street from where a teenage girl was fatally shot a week ago on a CTA bus.
G7 Ministers Meet with Bush President Bush Saturday morning emerged from a meeting at the White House with G7 finance ministers. It's the latest attempt to ease market fears and encourage banks to lend money. A CBS Radio report.
Amtrak
With Amtrak there are no tolls, traffic or weather issues to deal with. Just big, comfortable seats and miles of breathtaking views and spend real quality time with family and friends. Call Amtrak at 1-800-USA-RAIL or click on our web link.
Sponsored Links:
WBBM-AM 780 has been the consistent all news radio voice in Chicagoland for over 35 years and is now streaming online for free. Listen online to Chicago news as it happens around the clock, along with Chicago traffic, Chicago weather, Chicago sports and Chicago business. Subscribe to WBBM's free podcasts for additional Chicago business and Chicago community reports and listen to Chicago news on demand. WBBM news radio is also the home for Chicago Bears, Chicago Auto Show and Chicago Air & Water Show. www.wbbm780.com
