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All,
Another great week for my portfolio as it continues to reach new all
time highs. The momentum stocks are still doing well except for AOL that
deserves a rest. It also looks like the January effect is starting to work
on some of the low priced fallen angels I picked up. I did close my EGGS
and IDTI position during the week, added to my MSFT position, and opened a
new position in HRC. I'm fully invested and don't have room for any more
positions until I close something. However, that could happen any day as my
AOL stop is rising rapidly while AOL has started to move sideways and BS and
SDTI are getting close to my targets for them.
If I do close something, I'd like to replace it with an airline stock as
that group is starting to show good momentum. I had a hard time choosing
between SouthWest Air (LUV) and SkyWest (SKYW). I was leaning towards LUV
since I have flown on them lots of times and am impressed with the way they
do business and I have never personally flown on SKYW. However, I finally
went with SKYW since I liked their chart and numbers a little better.
SKYW at 37 1/2 broke out to a new all time high Thursday and continued
up Friday. I constructed a MetaStock standard deviation Short Term Up Trend
Channel (STUTC) from the 10/07/98 low to Fridays close. The top of that
channel with the deviation at 2 is 42 7/8 and the bottom with the deviation
set at 1 is 30. It set it's previous all time high at 34 1/4 on 7/6/98 and
then went on to form a deep CANSLIM cup type formation with a low of 13 5/8
on 9/10/98. That low was just above the bottom of its Long Term Up Trend
Channel (LTUTC) and it bounced off the bottom of that LTUTC again on
10/07/98 when it started the current STUTC. The fundamentals are good with
price/sales at 2.5, Debt/Equity at 0.19, positive earnings surprises the
last four quarters, 34% annual sales growth, and 54% annual EPS growth. If
I do close another position, I'll open one in SKYW. Since this is a
breakout to new all tine highs I won't set an initial target. I will set a
stop just under the old high at 33 3/4 and leave it there until the bottom
of the STUTC moves above it.
JimG
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