We advised on clients early Friday last week, to book all profits from MAPI as we recommended back to April 7 for an average 35% increase. MAPI was detected under Fidelity 52 week high breakout play, and as we are approaching 3-4 months prior to religious festivity in August/September, we expect as chart season pattern tells that a decline in the range of 10-25% may soon take place with MAPI.
In addition, we recommended our clients to replace MAPI with SGRO under the same play of Fidelity 52 week-high. Taking advantage over SGRO's pull back after breaking out its significant 52 week high and all supported trading criteria on last May 02, SGRO would be most probable following the step of MAPI as you all may see from both charts. In addition, we see a prospective volatility in soft commodities, specifically, CPO to run a bump toward the end of this May. We adjust breaking out with market average environment before declaring a 520 week high breakout rule. '+' On Thu, Apr 7, 2011 at 8:30 AM, positif01 <[email protected]> wrote: > Below: > > On Wed, Apr 6, 2011 at 3:51 PM, positif01 <[email protected]> wrote: > >> big play code: >> >> 52 / ath / lv mh / 4k >> >> '+' >> > > 1) 52-week high > close (April 06, 2011) > 52-week high close (October 21, 2010) for a period > of 6 months breakout; > how signficant is the breakout? > > 2) close (April 06, 2011) = all time high = no long-term overhead > resistance > > relevant trading/investing rule: > > a) The 52-Week High Breakout Strategy attempts to buy a stock when the > current day’s closing price reaches a 52-week high. (Fidelity Investments); > > b) William O'Neil: > "Once a general market decline is definitely over, *the first stocks that > bounce back to new price highs* [*for significant period of breakout*, +] > *are almost always your authentic leaders*. *These chart breakouts > continue week by week for about 13 weeks*. *The best ones usually come out > in the first three or four weeks*. This is the ideal period to buy > stocks...you absolutely don't want to miss it." (Finding New Leaders during > Market Corrections in "How to Make Money in Stocks", 4th ed., p. 190) > > 3) valuation - lv mh > expensive?...only if none or very few are left to buy. In MAPI case, check > recent foreign net buying and accumulation activities. Who knows what? > Sophisticated buyer? > > 4) target price > pause looking at all ratios generated based on the past, start gazing into > the going concern and the future. check all planned capex to justify > projected earnings of all key future ratios. not clear enough, find out why > there are still sophisticated buyers outside waiting for the ride, see > number 3) > > '+' > >
