Saturday Rock Blogging: Run Like Hell

There are breakouts galore right now and many stocks look poised to run like hell. You know how I feel about this broad market breakout, and that it is basically creating many amazing selling opportunities. But some stocks are legitimately continuing long term uptrends, stocks that are really running like hell. I'll be adding what I think are bullish breakout charts to this post over the weekend so check back. To start with lets just take a look at this gorgeous pattern on DRYS:


Nice call btb, Dry Ships is really running now! It broke $90 in the after hours yesterday after a big run through Feb resistance during the day. I maintain my longer term target at $155 based on the symmetric triangle breakout and a conservative measure rule. There's a good chance of a throwback to the $88 level or maybe slightly lower in the next two weeks before it really rockets higher. So if you aren't in yet, I would watch for an entry near $88.

Here's another nice looking weekly chart on Chevron:


After consolidating for 9 months, CVX broke out to new all time highs last week despite the weakness in oil. I could talk about how CVX earnings were great and how they may be coming back into favor as the multinational oil company of choice over Exxon. Instead, I'd rather focus on the long term uptrend in that stock and how the recent breakout has a short term target of around $115. I especially like how the 50 dma crossed over the 200 dma recently (golden cross) and both are increasing. On a cautionary note, if oil weakens further, if the market tanks or if the tax-big-oil rhetoric intensifies, CVX may loose $95 in which case I would exit and try again at the 200 dma near $88. If it can hold $95 though, CVX should really run like hell.

Another beautiful uptrend on a weekly time frame is DECK, the makers of UGG, Teva and Simple shoes:


This one has been running like hell for years now and sadly I remember buying it sub $20 pre-split (but took quick profits). Earnings last week broke this stock out of a symetric triangle with a price target "way up there." Depending on how you want to define the pattern I get a first target around $170 but then that will be a break out to new highs which gives a measure rule target in the mid 200's. Any way you slice it, DECK appears to be continuing its long term uptrend and headed much higher.

Disclosure: I own DRYS calls.