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Western Union Company (WU) breaking out

Yesterday for FusionIQ subscribers we published a full research report on Western Union Company (WU) highlighting how it broke out of a nice base and above a resistance zone in the $ 24.00 to $ 26.00 range on above average volume.  Western Union shares which rank a 97 out of a possible 100 in our FusionIQTM quantitative ranking system recently had a strong quarter besting estimates by 0.02 cents.  Additionally the company guided FY08 EPS above consensus and reaffirmed revenue growth targets in the 9.00 % to 11.00 % range. 



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Biotechs/Therapeutics still breaking out

Lately the biotech/gene and therapeutics issues have been all trading up on above average volume as money rotates into the group for the first time in a while.  This area looks to be establishing itself as an emerging leadership area.  Today two new issues, ILMN and NABI pop up on the FusionIQ Short Squeeze screen.  Both have sizeable float adjusted short interests (24 % and 11 % respectively) and higher point and figure price targets ($ 111 and $ 8.75 respectively). 


Given the rotation to biotech these two names look to offer solid near-term return potential.















FusionIQ Breakouts for July 10th

As we mentioned many times on this blog FusionIQ offers powerful short-term trading screens like the FusionIQ high volume breakouts seen in the table below .  This

screen looks to highlight stocks trading up on above average volume, typically a sign of strong institutional interest.

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Emergent BioSolutions, Inc. (EBS) breakouts
Emergent BioSolutions, Inc., (EBS) a biopharmaceutical company, that, develops, manufactures, and commercializes immunobiotics in the United States, the United Kingdom, and Vietnam broke out on 2.5x its 21-day average volume. The company operates in two segments, Biodefense and Commercial. The Biodefense segment offers products for use against biological agents that are potential weapons of bioterrorism and biowarfare; and BioThrax, a vaccine for the prevention of anthrax infection.
With new military budgets approved and terrorism a constant threat we believe EBS's point and figure target of 17.50 is very feasible.

Devry Inc (DV) - Higher Education Issue breaksout

Devry Inc (DV) which operates higher educational facilities across North America scored a FusionIQ short squeeze and breakout.  Typically higher education companies tend to do well when the economy weakens as enrollments spike as displaced workers seek to retrain or improve their skill sets. With a point and figure target of $ 74.00 DV shares offer good upside potential.

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Geomet Inc. (GMET) scores FusionIQ Price Breakout
Geomet, Inc. (GMET) which explores for, develops, and produces natural gas from coal seams (coalbed methane) scored a rare FusionIQ Daily Double landing on both the Fusion short squeeze screen as well as the breakout screen.  Yesterday shares exploded out of a base on above average volume and have an aggressive point and figure target of $ 13.50, offering ample upside potential for those looking for an oil and gas play.

BMC Software (BMC) breaks out
Shares of BMC Software (BMC) broke out on Friday after it beat analyst's expectations for the fourth quarter. Revenue rose 11.3% to $466.9 million, topping the Street's expectations of $460.3 million. Net income jumped 54.5% to $97 million. Excluding special items, EPS was 63 cents. Analysts were looking for EPS of 51 cents.

With a new FusionIQ timing BUY signal and a point and figure target of $ 62.00 BMC clearly offers good return potential.

Western Digital Corp. (WDC) - New Short Squeeze and Breakout

Yesterday WDC shares scored a new FusionIQ short squeeze as well as a break out.  The stock traded up on over 2.6 times its 21-day average volume as its near 11.00 percent short to float percentage caused a price squeeze.   The breakout comes on the heels of Western Digital presenting at the Robert W. Baird Growth Conference.  The short term point and figure target for WDC is $ 40.00, however we are more aligned with the notion that today’s significant price breakout more closely aligns with some of the higher fundamentally derived targets on the street such as $ 46.00 at Thomas Weisel Partners and $ 44.00 at Needham and Co.


Highlights from the conference include WDC management citing healthy overall trends in the HDD industry driven by competition and industry consolidation.   Additionally, WDC management outlined the success of the KOGM acquisition, which has transformed WDC into a fully integrated manufacturer.


Giving the extended price short-term pullbacks would offer better entry points.

Sell Signal: Bear Stearns (BSC)
Fusion IQ Rank has been consistently negative on Bear Stearns over the past 6 months.

The most recent sell signal was on Friday, and since then the stock has gotten whacked:

Three of the Nasdaq Four Horseman AAPL GOOG and BIDU Limping

and BIDU have been coming up gimpy since their FusionIQ timing sell signals which triggered at much higher levels several weeks ago (note the sell signals are noted with an S on the attached charts). Since these FusionIQ timing sell signals triggered these stocks have fallen precipitously.  Only RIMM, which gapped open yesterday, acts ok while the other stocks have clearly broken down.  We point this out because trading highly volatile names like the aforementioned can be dangerous particularly if one doesn’t have some disciplined unbiased indicator driven trading signals to help make better decisions.


Remember making sound decision sometimes requires introducing another layer to your trading plan.  Just one of these FusionIQ timing signals if followed in the last several weeks could not only have produced a windfall of profits (or helped one avoid losses) it would have also paid for the service for several years with just one trade.














































Commodites Continue to Surge: Powershares DB Fund Hits New High

Several weeks back we highlighted commodity stocks as showing strong technical strength within the context of an otherwise weak tape.  As seen in the chart below of the Powershares DB Silver Fund, scored new highs yesterday.  This is just one of many commodity based ETF’s scoring new highs.  This broad based participation shows good breadth and suggests the commodity advance can continue even if there are pullbacks along the way.

INCY Continued Breakout
INCY, a molecular and genomics company that we featured in our FusionIQ Investor Chart of the Week several weeks ago, continued to breakout to new price highs yesterday on above average volume.  Shares continue to look bullish with an $ 18.00 target and can be bought here and on pullbacks.

AIG: Don't Try and Catch a Falling Knife
Many investors think that large cap, world class global stocks like AIG can always be bought when they have an off day such as yesterday when AIG shares plummeted over 11.00 %.  The logic tends to go something like this, " Wow AIG got really pasted yesterday it has to be overdone and a god buy here, after all it is AIG."  But as the attached chart shows buying a falling stock can be akin to trying to catch a falling knife.  In other words it can get pretty dicey.  Even taking into account yesterday's decline we caution investors that with a FusionIQ technical rank of only 12 (out of a possible 100) AIG is likely to go lower still, even if a nominal bounce were to occur in the interim. That said we as the attached chart shows we think AIG now won't find support until it hits $ 32.00.  This support level ironically coincides with the downside unbiased, point and figure objective price target of $ 33.00.
American International Group (AIG) - Weekly Chart through yesterday's close

Metalico (MEA) High Ranked FusionIQ Breakout

Metalico Inc. - MEA, a company that treats and recycles industrial waste such as lead acid batteries, scrap lead, and tin/lead scraps broke out of a multi-month consolidation on Friday on expanding volume after setting a solid base support between 9.00 and 8.75.  Addtionally the company has bested earnings estimates by double digits in 2 of the last 3 quarters, and has a very bullish FusionIQ Master Technical Score of 92.  The upside point and figure derived price objective  of $ 18.00 is as bullish as the FusionIQ Master Technical Score implies.


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