Range bound markets and opportunities

Range bound markets and opportunities

January 30, 2007

The market continues to be range bound. While the rally leaders pullback or breakdown, a broad based sector rotation is at play. The new sectors breaking out offer some very good low risk opportunities for entries.
Yesterday I had over 100 breakouts in my scans. Several of them have the right earnings catalyst and relative strength plus sector fuel to take them higher. If you see the following list, you should find ample opportunities on long side:
Selected breakouts with potential:
AOI,Alliance One International Inc (Google  Yahoo  Earnings  Chart) 
BMRN,Biomarin Pharmaceuticals (Google  Yahoo  Earnings  Chart) 
BPFH,Boston Private Fincl Hld (Google  Yahoo  Earnings  Chart) 
CSIQ,Canadian Solar Inc (Google  Yahoo  Earnings  Chart) 
ESLR,Evergreen Solar Inc (Google  Yahoo  Earnings  Chart) 
FBP,First Bancorp Holding Co (Google  Yahoo  Earnings  Chart) 
FCEL,Fuelcell Energy Inc (Google  Yahoo  Earnings  Chart) 
FLML,Flamel Technologies Sa (Google  Yahoo  Earnings  Chart) 
FSLR,First Solar Inc (Google  Yahoo  Earnings  Chart) 
FSYS,Fuel Systems Solutions Inc (Google  Yahoo  Earnings  Chart) 
GNTX,Gentex Corp (Google  Yahoo  Earnings  Chart) 
GYI,Getty Images Inc (Google  Yahoo  Earnings  Chart) 
HLS,Healthsouth Corp (Google  Yahoo  Earnings  Chart) 
IMCL,Imclone Systems Inc (Google  Yahoo  Earnings  Chart) 
IPSU,Imperial Sugar Company (Google  Yahoo  Earnings  Chart) 
IRM,Iron Mountain Inc (Google  Yahoo  Earnings  Chart) 
JST,Jinpan Internat Ltd (Google  Yahoo  Earnings  Chart) 
LYO,Lyondell Chemical Co (Google  Yahoo  Earnings  Chart) 
OFG,Oriental Financial Group (Google  Yahoo  Earnings  Chart) 
PERY,Perry Ellis Int'l (Google  Yahoo  Earnings  Chart) 
PFBC,Preferred Bank Los Angeles (Google  Yahoo  Earnings  Chart) 
POT,Potash Cp Saskatchewan (Google  Yahoo  Earnings  Chart) 
QLTI,Qlt Inc (Google  Yahoo  Earnings  Chart) 
RGR,Sturm Ruger & Co Inc (Google  Yahoo  Earnings  Chart) 
SBH,Sally Beauty Holdings Inc. (Google  Yahoo  Earnings  Chart) 
SBNY,Signature Bank (Google  Yahoo  Earnings  Chart) 
SIGM,Sigma Designs Inc (Google  Yahoo  Earnings  Chart) 
SILC,Silicom Ltd (Google  Yahoo  Earnings  Chart) 
SIRO,Sirona Dental Systems Inc (Google  Yahoo  Earnings  Chart) 
SOHU,Sohu.Com Inc (Google  Yahoo  Earnings  Chart) 
SPAR,Spartan Motors Inc (Google  Yahoo  Earnings  Chart) 
STLD,Steel Dynamics Inc (Google  Yahoo  Earnings  Chart) 
STP,Suntech Power Holdings Co Ltd (Google  Yahoo  Earnings  Chart) 
TDG,TransDigm Group Inc (Google  Yahoo  Earnings  Chart) 
TRCR,Transcend Services Inc (Google  Yahoo  Earnings  Chart) 
TRID,Trident Microsystems Inc (Google  Yahoo  Earnings  Chart) 
TSCM,Thestreet.Com (Google  Yahoo  Earnings  Chart) 
TSL,Trina Solar Ltd. (Google  Yahoo  Earnings  Chart) 
USAP,Universal Stain & Alloy (Google  Yahoo  Earnings  Chart) 
UTI,Universal Technical Institute (Google  Yahoo  Earnings  Chart) 
WWW,Wolverine World Wide (Google  Yahoo  Earnings  Chart) 
XIDE,Exide Tech (Google  Yahoo  Earnings  Chart) 

What are the sector themes emerging. Solar energy, every single stock related to solar energy is breaking out. Clearly the market seems to like the prospect for solar plays. Steel and metal is another sector witnessing breakouts in last couple of days. These sectors are breaking out after a few quarters of good earnings. Regional Banks are also breaking out. In last couple of weeks Regional Banks have seen large scale breakouts after many months of unerperformance. Other sectors where there are fresh breakouts is large cap biotechs, auto parts and aerospace.
So even though market is stuck in range there are lots of opportunities.