$SWI Breakout

Today was really fun! Everything opened way up and kept climbing all day! My $PCLN position is up almost 29%. All three stocks on my watchlist were up on volume including a breakout from $SWI on 134% better volume! The only negative is that $BEAV is up from where I sold it, however it was lacking volume today.

As long as nothing crazy happens before the market opens tomorrow morning, I am going to be buying $SWI. I have been talking a lot lately about how I need to be looking for opportunities to get into the BIG NAME stocks that are the BIG movers. Seeing as $SWI is the number 10 ranked stock on the IBD 50 and it’s in the number 1 ranked industry group I think this is a great chance for me to put my money where my mouth is and jump in.

$SWI broke out of a square base with a 39.85 Buy Point on 134% greater than average volume. It has a 99 Composite Rating, a 97 EPS Rating, a 97 Relative Strength Rating, an A SMR rating and a B+ Acc./Dist. rating. The only red lights on the Stock Checkup are EPS % Chg, Last 3 Qtrs Avg EPS Growth, # Qtrs of EPS Acceleration and EPS Est % Chg. I’ve come to the conclusion that I’m never going to find a stock that is all green, so in this market and this Industry Group this is acceptable risk for me. $SWI doesn’t report earnings again until 4/30/12, so I will have plenty of time to evaluate this position before that.

My general practice lately has been to put about half my account into a purchase, so I’ll be buying about $1,250 worth of $SWI. As soon as the purchase price is confirmed I will set a Stop/Loss Order at 7% below the purchase price. If the position reaches a paper profit of 10-15% I will begin to watch very defensively holding tight to all of the sell rules I have described on here before.