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American Superconductor and Brinks Are Worth a Shot


Overcoming aversion to technical breakouts.

Editor's Note: The following was posted in real time on our premium Buzz & Banter (click for a free trial).

After an excellent chat with Professor Smita Sadana at the Minyanville Festivus, I decided to revisit my nearly universal aversion toward buying technical breakouts, and to take closer looks at those patterns if other non-traditional indicators (DeMark) and/or fundamentals support the thesis.

Along these lines I've dipped into The Brinks Co. (BCO) and American Superconductor (AMSC).

American Superconductor shows a classic breakout and while the DeMark daily is close to registering a TD 9 Sell Setup, the weekly chart looks very constructive. After a small schnitzel this morning I'm going to "hope" for a pullback into the $36 to $37 range to add. Notable is that uber-Minyan and technician John Roque of WJB Securities is fawning over this name, and Raymond James has it as one of its faves on a fundies basis.

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Brinks Co. on the other hand looks very compelling any way you look at it, daily and weekly DeMark, as well as a clean breakout of the downtrend line. The fundies? Eh, not so much right now but the stock isn't overly expensive.

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No positions in stocks mentioned.
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