Earnings Play, Strong Set-ups, etc....

Hey guys,



If there was one sure fire way to make substantial gains in the market it would definitely be by riding the coat-tails of strong CANSLIM quality stocks that post strong earnings or earnings surprises. Two stocks that you should keep an eye on include RBN and PENX.





PENX has already announced strong earnings and thus, its shares have soared today. Still, this doesn't mean that you are too late to the party. Low volume/float stocks such as these continue to experience high demand and therefore, continue to head higher in the days and weeks to come. It is important to establish a position in these highly volatile stocks as soon as possible in order to maximize your profit potential. Sure, the stock may come down a few points, form a pivot point and then head higher, but it may also continue to head higher without rest if demand far exceeds supply. Here is a chart of PENX


PENX

















































RBN has just recently released earnings after the market close. The stock has reacted favorably to the news and has jumped up quite a bit after hours. It is best to watch for a pre-market or intra-day low if you want to establish a position in RBN. Although you may not save much in percent wise, RBN is poised to head higher in the immediate future due to the positive earnings.


RBN

My next stock pick is not an earnings play. Instead, it is a small stock that is setting up a strong chart pattern that looks promising for the months ahead. The stock is SVLF. I have kept an eye on it for a while and I think that now is a good time to buy. The stock has recently bounced off of support at its 200 day MA and has recently reclaimed its 50 day MA. In addition to great technicals, the stock also boasts strong CANSLIM like qualities such as promising earnings growth and increasing sales.

SVLF