[isatrader]

SIMO looks to be making it's first Stage 2 continuation move attempt on strong volume and relative performance from an inverse head and shoulders pattern.

[isatrader]

Potential continuation moves for the watchlist - SIMO, SMED, XRS, ORBC, RCON, WAT

[isatrader]

A reemerging theme that I'm going to do some work on over Christmas is the Home Builders sector ($DJUSHB), which I think is at a crucial point on the monthly chart recovering above the 10 month MA from it's first significant pullback in the monthly Stage 2 run that made it a leading sector through 2012. The weekly is back into Stage 1 with lots of stocks attempting early breakouts http://stockcharts.com/freecharts/sector...TOR_DJUSHB so I think it's a theme that's worth researching again as the housing recovery has a long way to go yet imo.

I highlighted that the homebuilders were recovering back in December, and today DHI made a fresh Stage 2A breakout 10 months or so since it's previous Stage 2 climax. Relative performance versus the S&P 500 continues to improve and is close to a zero line cross, although the zero line is still declining currently, and volume is just under the weekly average after two days, so is on target to meet the two times requirement that we look for currently. And the monthly chart looks like it could close a second month back above the 10 month MA. Attached is the charts.

[isatrader]

VRNG gaped higher today on heavy volume - more than 16x times the average daily volume after only a few hours. It had a strong volume breakout last week that was more than 2x the weekly average and has already done more than that this week with only half the week traded. So this looks like it wants to attempt to breakout to new all time highs.

[isatrader]

I originally highlighted ASTC back in early December when it was setting up for it's first Stage 2 continuation move at 1.57 here: http://stageanalysis.net/forum/showthrea...01#pid2401

ASTC came up again in the scan tonight as it had a strong volume day, and is now close to a further continuation move after pulling back over the last week to the 10 week MA and rebounding strongly today.

I wanted to highlight it again today as the move since it's Stage 2A breakout in October has seen it advance over 200% on very heavy relative volume, and it's now challenging it's five year highs as can be seen on the attached monthly chart. Whether it makes a continuation move or needs a more significant pullback to digest the recent strong gains, it certainly has the characteristics we look for in an A+ candidate. So it is one to watch closely imo.

[isatrader]

Potential continuation moves - KUTV, PRTA, FSL and also HZNP which has moved to all time highs this week on strong relative volume.

[isatrader]

Single digit midgets for the watchlist - CORT, LTBR

[isatrader]

Potential continuation moves - ACXM, CSII, MEOH, PBI, HBI, JLL, MTOR, GDOT