Breakout!

Hey guys,

Today's action was simply awesome. But you didn't need me to tell you that. That's because most stocks were up today (except for a few bad apples). Many more have even begun to breakout or put the finishing touches on their cup w/ handle formations. There are several winners that stand in my mind including: INXI (I've been recommending this one since $8/9), SPAR, KHDH, MTOX, FTK, TONS...etc. Also keep an eye on TWI as it looks ready to breakout to new heights. Despite the fact that I already have plenty of stocks in the portfolio, I am tempted to pick up a few new names and take some profits on some older holdings.

Now onto bad news...

One of my fav plays, GRIL just got hit with a big sell off earlier this afternoon. The drop was 11% on huge volume. I am looking for a bounce off of the 50day MA. If the stock performs an encore tommorow, I am selling. It is a clear sell signal if the stock drops down a lot on big volume or if it closes below the 50day. There are so many other stocks that are performing well that it doesn't make sense to hold onto GRIL if it can't perform well. Remember, trading stocks is like a summer fling, never confuse it with a marriage or long term relationship....