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Well, I do not frequently talk about specific stocks that may break out.   However, yesterday I wrote that ARMH looked like a possible cup-with-handle base. Go back to Monday’s post and look at the daily chart of ARMH.   Then look at Tuesday’s chart below. ARMH lost no time breaking above the handle high (horizontal red line).   Given the increased share volume on Monday, this may be the beginning of a nice rise.

The up-trend remains intact and the GMI and GMI-R are still at their maximum values.

ARMH may be forming a cup-with-handle base. ARMH is an RWB rocket stock.   The traditional IBD approach would be to buy it upon a high volume break out a little above the high of the handle, at about 19.06.   However, another way I like to to buy is after the stock bounces off   its rising 30 day average (red line).   After the purchase, I would place my   stop order to sell below Monday’s low, at about $18.19.   Buying off of the bounce of a proper moving average is a nice strategy because the stop loss can be placed based on the technicals   not far from the purchase price, thus producing a small loss if the trade does not work out. (However, the stock may never follow through with the break-out above the handle.) I have found that the most stress free way to trade is to place a proper stop loss order immediately after taking on a position, thereby defining the likely risk.   If the stock acts poorly I am likely to be sold out with a small loss and can later buy it back or move on to another stock.   Every small loss brings me to the next gain. Click on chart to enlarge.

On to end of year/quarter mutual fund window dressing. My next post will be Monday morning.

I bought some January deep in-the-money call options on ABV yesterday.   It may be breaking our of a multi-week consolidation. Yesterday, though, there was little increase in volume as it rose.   If it falls back, I will sell. Click on this daily chart to enlarge.