Monday, February 26, 2007


IBD, even for free, provides some information on their website about stocks that are moving for the day. You'll see a list of the top five stocks that have the most volume change (by % I think) and are moving up for the day.

On Feb. 20th SPAR was in the top 5 movers in the morning. IBD is kind enough to provide company evaluations on any stock in the top 5 movers. I looked up SPAR and it's fundamentals were OK, but the price was so far off it's 50 day, that it was too late to get in on that one. The group as a whole is rated pretty high, and the leader of the group was Cummins Inc. (CMI), so I checked out their chart. Whooo boy is that an expensive stock for only having $5k capital...wrong, you get what you pay for you know. Starting Oct 18th 2006 CMI headed into a cup pattern, pulling back to a drop of 19% on Jan. 10th 2007 (A base of more than 10 weeks). A high handle formed on Feb. 17th for only a week when it shot back up past $140.

I liked what I saw, but can't really buy into a stock very much with such a high price. So, I bought what I think is called an "odd lot" (not even multiple of 100) of 10 shares at a price it drifted along at for the rest of the day, $143.00 on Feb. 20th.

A "cup with high handle" isn't a great thing, but good fundamentals, a good group, and high price make me hopeful (I guess they call that bearish in the stock world).

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