Trader Mike

Public Storage, Inc. (PSA) is a perfect WallStrip stock — a boring story powering to new highs year after year…

You know I like to play IPOs just as they make new highs after building a base. Here are two that are making new all-time highs: Multi-Fineline Electronix Inc (MFLX) and Syneron Medical Ltd (ELOS).

Duru profiled MFLX while he was guest blogging for me last month and called it cheap based on the fundamentals. Fundamentals?!?!? The stock is too thinly traded for my liking so I never gave it any consideration. It jumped last night after reporting earnings. Hmm, maybe there’s something to those fundamentals after all.

ELOS never made a long enough base — it just keeps cruising higher. It looks …

A good day today (if you’re long) as the buyers stepped up right from the opening bell and pushed the market up nicely (2% on the Naz). Those shooting stars from yesterday were negated by today’s moves. I’ve still got my eyes on those long-term groups of MMAs. The S&P 500 has pushed about halfway through its long-term MMAs while the NASDAQ is still approaching its group. It’s interesting that the market has no risen above where the jobs news hit and is back in the vicinity of where the Yukos & oil news caused that slide back on the 5th. Things might really get interesting if oil ever breaks down.

The CANSLIM Investing Blog has a post today discussing overhead resistance and why you’d want to buy as a stock just as it’s breaking out to new all-time highs. Another reason I’ll add to the list is the potential for a short squeeze. Once a stock makes a new all-time high, not only are there no more ‘natural’ sellers (people who were long but were sitting on a loss and want to sell to beak even) but now everybody that’s short the stock is losing money and will have to buy to get out of their positions. That kind of panic buying can make for some incredible gains.