The Stocks that Can Help Save the IBD Index...

Hey guys,

Once in a while, I take a peak at the IBD index, just to see which new or current stocks can help lift the index higher. As a measure of market and stock performance, the IBD 100 Index has been outperforming the general market indices for quite some time now.
I have been an avid fan of the IBD paper and the index since I began trading in 2005. There is only one problem. I feel as if the index has been lagging. In 2005 and upto May 2006, the IBD 100 index was doing great. Lately, I don't even know what the heck is the logic behind some of their stock selections. For instance, some of this weeks new entries have no business being placed in the index. Stocks such as DRYS, COH, HWCC and BCSI, while strong fundamentally, have no reason to be placed on. Is there some hidden political reasons for their inclusion or a glitch in the computer program that picks the stocks? Who knows. All I know is that charts on those stocks are flawed and not showing strong technicals. What is the reason for adding DRYS now after the stock doubled? Was it not good enough after it broke out at 20 back in February? Also, the charts on COH and HWCC look like a mess as well. Still, despite those lackluster inclusions, IBD has a shining ray of hope left. They also picked some decent stocks as new entries as well. Stocks such as TLVT, ELP, FCSX, and RRST are good stock picks and can definitly head higher. I know it seems like I'm coming off on a rant, but I really want IBD to shape up and put out some more promising stocks on their list if they hope to continue to outpace the major indices in the weeks and months to come. This of course is just my opinion. Some of you reading this may disagree with me about IBD's methods of the IBD 100 List selection or their performance in comparison to the S&P and its all good. I don't care. Your probably right. The only thing I care about is the fact that they are sometimes sloppy and careless about what stocks they place on the index (and when they choose to add them).

Here are some charts of this weeks top new entries....

APLX

APLX is a great long-term trade that continues to appreciate in value. I remember first spotting this stock when it was trading for no more than 8. Now the stock is at 16 and is begining to generate some more investor intrest, hence the healthy accumulation in volume on the right side of the chart...

ATHR

ATHR has been doing quite well since it came out of a strange double bottom (at 15) and base pattern a few months ago. ATHR is a rather new issue (just a few years old). I expect it to hop around 29-30 for a bit as it works on a handle. I would long it on a breakout that takes it above its level of resistance of 30 and into uncharted territoty. After that, its blue skies for ATHR...

ELP

ELP is one of the more attractive trades out there. The IBD inclusion will undoubtedly help it soar upward from here. Just becareful about some possible resistance just north of 20.

FCSX

If first recommended FCSX shortly after its IPO debut. Unfortunatly, I sold while it was still under 50. The good news is that FCSX looks ready for another crack at 50 and beyond. The technicals and chart action are definitly en feugo on this one. Yes, FCSX makes another good buy at this level.

RRST

Although I had just recently played RRST as a quick trade just a few days ago, I still think that RRST makes a good long at this point. The IBD list inclusion should help catapault it to new heights in the upcoming days and weeks.

SJR

If your looking for a great media/communications play, SJR is the hot ticket right now. It is a safe, CANSLIM quality stock that can definitly head higher.

SRSL

Although I played it as a quick trade back in Nov. of 2006, I believe that SRSL is setting up a nice chart that shows some upward potential in the weeks and months to come.

TLVT

TLVT is a rather new issue that has recently broken out of a cup with high handle pattern. The stock is showing great strength and can definitly move much higher. I like this one alot. It also still relatively low key, but watch out on Monday. I suspect that the IBD inclusion will fling this stock even higher.