[mesa613]

PNRA looks real tempting to me right now, but I'm not quite sure whether to jump in tommorrow morning.

On one hand, PNRA seems to have formed a kicker signal that went past both what appears to be some resistance at $70 and flew past the 100 day MA. One the cautious side of things, it's still under the 50 day MA and the company is making their earnings announcement on Tuesday and that type of thing can always a wildcard in my book no matter how rosy the picture.

Any thoughts?

[Bluto]

That's a powerful looking Kicker there on Wednesday. Fast Stochastics shows it as comfortably oversold, and volatility looks ok. It's been in a trading range since around December 05. Bollinger Bands look like it could run up all the way to the $75.50 - $76.00 range. Specialty Eateries group has above average performance. However, considering the high share price of Panera and how hot the market is right now, you could buy two shares of a high momentum stock with room to run in the $35/share range and double your profit. I'd look at the Basic Materials sector (Mining, Aluminum, Precious Metals, etc.), the Energy Sector, or the Industry Sector (Heavy Machinery, Agricultural Equip., Small Tools, etc.) for some great picks right now. Panera doesn't look like it has much mojo to run anywhere.

[mesa613]

So you're saying I should eat CAKE then? It is at about $35 right now afterall and the chart doesn't look half bad in my humble opinion.

Actually CAKE is also on my watch list for tommorrow, but between the two the signal on CAKE just doesn't look as "clean" as PNRA's signal to me for some reason. Oh well, only time will tell.

You really think the basic mineral sector is at a good entry point at this stage?

[Bluto]

[S2]

Hmmm, it's interesting to hear other peoples opinions and see what they find attractive; here's my 2¢. ROCK, ZOLT and NPO all have their stochastics in the overbought area and have good long run ups; how much longer will their runs go? I think they may be about ready to take a respit.

PNRA has a nice chart, yes has a kicker, however, it touched the 50 and backed off, have to see what tomorrow brings. Also it has a 10-day ATR of $1.69

CAKE came up on my scans and made it to my list of possibles; assuming the same dollar amounts spent on either PNRA or CAKE you would obviously get twice as many shares of CAKE as PNRA. The ATR of CAKE is $0.96, so for the price it is covering more ground than PNRA. Both of them have stochs just coming out of OS. CAKE has possible resistance in the 35.41 area and the 50dMA to contend with just under 36.

Interesting interesting.

[Bluto]

Yes, some of those high momentum stocks like ZOLT are definitely in an overbought status and are no doubt due for a pullback "breather". However, even though Stochastics shows overbought, that indicator becomes completely useless with strongly trending stocks. I find that it works best with low volatility and trading range bound stocks. With strongly trending stocks, MACD is probably the better bet, although my personal favorites are RSI, ADX, DMI, MSI and Bollinger Bands. As for these momentum stocks, the best thing to do is try to buy in after a pullback and let it ride, waiting for intermediate/long-term reversal signs like lower highs, etc.

[russjackel]

sorry for asking a stupid question but what is ATR ? not familiar with the term. thanks

[mesa613]

ATR is a volatility indicator, I think. I imagine Investopedia probably has a more exact definition on their site.

Cheers.

[S2]

ATR is Average True Rang, High to Low. A higher priced stock licke PNRA, AAPL, SNDK has an ATR in dollars; a $5 stock typically has an ATR measured in cents.

One evalutaion you can make if you have two similar priced stocks to choose from and both of them look equally appealing to you the one with the higher 5 or 10 ATR may sway you to go with it due to the larger spread. It's just another tool to consider.