Canadian Natural Resources (CNQ)

Very nice cup, looking to form a handle. Good volume on the upper right side.

Powershares DB Base Metals Fund (DBB)

For those of you interested in ETF's, I highly recommend the Powershares DB Base Metals Fund (DBB).

Very nice cup with high volume accumulation as it makes new highs.

Cal-Maine Foods (CALM)

Nice cup w/handle breakout. Another commodity (eggs) stock.

Where the money's at

Buying continues in the commodity/agricultural industries. Please focus your buying on these stocks.

Rules of the Market

The first and utmost important rule is to always, always, always cut your losses 8% (or less) below your purchase price.

FC Stone Group (FCSX)

FCSX looks to be making a comeback. Up yesterday on good volume, today's trading session looking positive.

Visa (V)

Visa-possibly the biggest IPO in U.S. history.

http://www.chicagotribune.com/business/chi-tue_barnhart0226feb26,0,1264856.story

Priceline.com (PCLN)

Yearly chart. High volume buying indicates institutional investment. Like the long term prospects.

Breaks out of cup shaped base after reporting stellar earnings. Excellent volume.

Alpha Natural Resources (ANR)

Excellent volume. Breaks out of v shaped base, past $38.90 buy point.

EOG Resources (EOG)

Shot past buy point of $100.85 on above average volume. Still within 5% buying range. Looking to add more shares.

Fording Canadian Coal (FDG)

Broke through both levels of support on good volume.

Titan Machinery (TITN)

Recent IPO. Uneven cup w/handle. Buy point $19.81

Baidu (BIDU)

Baidu, the Google of China, reported Q4 earnings of $0.87 cents a share on revenue of $78.3 million. This beat estimates of $0.72 cents a share on revenue of $77 million.

The stock pierced its downward trend-line, signaling a possible reversal.

Powershares DB Agriculture Fund (DBA)

The Powershares DB Agriculture Fund seeks to track the Deutsche Bank Liquid Commodity Index-Optimum Yield Agriculture Excess Return Agriculture ER which is intended to reflect the agricultural sector.

Commodities have been immune to the recent correction.

United States Oil Fund (USO)

The United States Oil Fund seeks to reflect the performance of the spot price of West Texas Intermediate light, sweet crude oil delivered to Cushing, Oklahoma by investing in a mix of Oil Futures Contracts and Other Oil Interests.

Nice double bottom with volume as support.

First Solar (FSLR)

Daily Chart - Notice the huge volume today. Looks to be forming the right side of a cup.

Weekly Chart - regains 10 week moving average on good volume, breaks downward trend-line.

First Solar blew the hinges off their Q4 earnings report earlier today. Very reminiscent of Google when they were making their huge run. First Solar reported earnings of $0.77 cents a share on revenue of $62.9 million, up from a year ago period of $0.12 cents a share on revenue of $8 million. They easily beat analyst estimates of $0.54 cents a share.

They also raised their revenue forecast by 15% for the year to $900 to 950 million.

Sales rose to $201 million, up from $53 million a year earlier. Analysts estimated sales to be at $180.2 million.

First Solar rose more than 700% last year and looks to be on the same pace this year. This is a monster stock or, as Peter Lynch calls it, a 'ten-bagger'.

Stocks to Watch

WMS Industries (WMS). Very nice cup w/handle break-out. Has the volume to support a potential long run.

Southwestern Energy (SWN). Pierced upper trend line. Heavy selling is also a concern. Possible short term reversal after spinning top made today.

Range Resources Corp. (RRC). Didn't break out on heavy volume which is worrisome. Green circles indicate buy points.

Newmarket Corp. (NEU). The stock with the most potential. Look at the number of shares that were purchased today as the stock made new highs. Indicates heavy institutional support.

Quiksilver Resources (KWK). Broke out of cup w/handle. Light blue circle indicates buy point. Volume is missing.

EOG Resources (EOG). Broke out of its base on heavy volume. Spinning top also formed, indicating short term reversal.

Calgon Carbon (CCC). Broke out of base on heavy volume. Spinning top formed today (2/12) indicating short term reversal.

Mechel Steel Group (MTL). Broke out of its base yesterday (2/11). Has 2 trading sessions of above average volume for support.

Once this market bottoms, and a new bull market emerges, its important to see which industry groups are going to lead the way. One of the staples of the CANSLIM formula developed by William O'Neil is to buy leaders, not laggards. These charts exemplify potential market leaders.

Thanks to Chris at http://www.chrisperruna.com/ for running the stock screen and posting them on his blog. Hope you enjoy the analysis!

Mastercard (MA)

Mastercard's chart shows a very nice cup w/handle. The only problem is the extremely light 'up' volume in the handle. Would like to see this pick up.

Cree (CREE)

This a weekly graph. Notice the accumulation on above average volume.

Strong accumulation on the daily graph as well. Technicals look very good. Its high on the left side of the cup is $34.87, the high on the right side of the cup is $34.27 which was just made yesterday. The pivot point (buy point) would be $34.97 on strong volume. The pivot point is $0.10 above the high of the cup.

Cree is a Durham, N.C. based company that makes light emitting diodes (LED's). You may have seen them in the new stop lights. Major advantage of using them over the old ones is their power saving features/cost efficiency. Seen as a 'green' alternative.

Fundamentals

Net profit margin-9.24%

Return on equity-4.22%

Relative Strength:

Last 3 mths- 48%

Last 6 mths-32.6%

Last 12 mths-99.7%

Earnings:

0.15 v. 0.17 v. 0.29

0.08 v. 0.21 v. 0.23

0.34 v. 0.31

0.08 v. 0.17

Pretty weak earnings. Not what you would like to see in a possible investment. The technicals are a lot stronger.

Patience is a virtue

Success requires patience and discipline. It's better to wait for the right stock at the right time than to buy a stock and hope it goes up because it reported stellar earnings. Always wait for market confirmation. The market is always right. 3/4 stocks follow the current market trend.

Intuitive Surgical (ISRG)

Reported Q4 earnings 1/31/08:

Net income rose to $49.2 million or $1.24 per share, compared with last year's Q4 income of $23.6 million or $0.62 per share.

Revenues rose 68% to $189.4 million.

Analysts were expecting earnings of $1.04 per share, on revenue of $176 million.

Expects 2008 total revenue to grow over 40% from last year's $600.8 million. Analysts are expecting revenue of $809.4 million for FY 2008.

Mastercard (MA)

On Thursday, January 31, 2008, Mastercard released Q4 results. Earnings nearly tripled as profit surged 187% to $0.89 cents per share. This excludes $1.37 per share on sales of shares of Brazilian credit firm Redecard. They beat Wall Street estimates by $0.17 cents a share. Revenues rose 28% to $1.07 billion, its best gain in years. The rise can be contributed to strong global growth in transactions and the total amount charged by customers. Transactions were up 17.2% in Q4 to 5.2 billion.

I'll be keeping my eye on this stock, as it could be a potential leader given the proper market conditions.