Members have been wondering how i actually come up with this list of daily bullish
stocks such as what kind of filter do i run, what to look for in the stocks etc. I think its about time i tell everyone 
Its quite simple actually.
Well actually heres the only complicated part. I run my filters using Metastock charting software which you have to purchase for $449 from [url]http://metastock.ca/end-of-day.aspx[/url] . Although it seems like it would be cheaper to just have me to do it for you not to mention you have to pay $30/month in addition to download the charting data for every session.
In any regards, The filter concept is really easy and i wouldn’t be surprised if you could find some free online filter out there to do the same thing, i haven’t looked so if someone else knows of a great filtering website out there that lets you input precise criteria for the results let us in on the good news!
So….. For OTCBB stocks you can’t really get anymore simple than this. The filter only looks for stocks that have rallied 5% during the session and traded more than $500m. Thats not 500 millions shares but rather $500m dollars exchanged that day. We don’t want to be caught up in ill-liquid small caps that we can’t even sell when we want too…… cough cough IFSG.OB cough haha 
From there you can a list of stocks that are all potential candidates. From here you have you use charting science to decipher the ones that may be playable. Fortunately i found a perfect stock for this example of exactly what look for in both kind of breakouts that i like to play. Which is either the breakout to longer/shorter term new highs, or the bottom fishing consolidation to short term breakout. So lets look at RPTN.OB, which treated us very nicely here at TTT.net in 07′, for this example.
So for starters lets take a look at the breakout to new highs example. Also take note, the longer its taken for a stock to breakout from a resistance point the more significant the yield of potential returns is. So for example here with RPTN.OB. Looking at this chart we can see that price had bounced up near .90 - 1/share for around 2 years making this a very strong resistance point. Then notice in late 06′ there was a significant increase in volume and a rally up near $1. Volume surges like this suggest that there is the possibility in a strong new bullish trend in play. Which is why all of my technical filters are ultimately based on volume. So in early 07′, price broke out of above this 2 year long resistance level near $1 with huge volume to back up this breakout. We use volume as a measure of confidence as to whether this breakout will continue its run, Essentially you want volume to be above the 60Vema for breakout confirmation.
So lets take a look back to the message boards on March 8th 2006 when i first alerted RPTN. The pre-breakout volume surge forewarned us that this stock was likely to breakout to the upside of this resistance pattern as momentum was strong.
Following breakouts theres’ always the question of, where the hell do i buy this thing? Well, if the breakout is to be profitable the way we are hoping you could buy right at the open the next day and you should turn out profitable because we expect price to continue trending higher than the highest price of the breakout day right? Although what i have found a prime spot for entering into breakout plays is the midpoint of the breakout candle. Which can be found by :
[open + close / 2 = entry price] = .95 + 1.20 = 1.075 in this case to point a great point of entry. Now this spot doesn’t have to be exact for your entry but it gives you a general area of where you want to pick up some shares on the dip . For example quoting myself from the message board i gave a +/- .075 spread or so.
“Im looking to buy RPTN within the range of 1.00-1.15, anywhere between there and i’ll be happy.”
Also looking at this short term chart, this also in itself is a very attractive chart for a buy from a short term perspective (ascending triangle pattnern). It just so happened that this $1 area had been battled for 2 years making it a very significant breakout.
Now technicals are the foundation of all my trades. But by themself its just not enough reason for me to buy a stock. 1 of 2 situations must apply. Either the stock must have very strong forward earnings growth and deeply undervalued within its industry based on PE and forward PE (price/earnings ratio). Or the other situation which is product speculation, such as the case with RPTN.OB. RPTN.OB had crappy fundamentals, yet they had a innovative product, along with the bullish stock chart which gave us a great opportunity for momentum speculation trading i guess ill call it.
Lets take a look at my analysis from the message board on march 8th:
“At first glance i was astonished by the beauty of this chart. A perfect breakout of over 2 years of resistance at $1 with the highest volume since early in 2004 making this a breakout of huge significance. Just looking at the chart alone i think it could go up 100% from here easily. I started looking at the recent PR’s and didn’t see anything that was too exciting except for that the lead network guy from quest recently joined the team. So i decided to dig a little more and listen the interviews with wallst.net here : http://www.wallst.net/superstocks/superstocks_profile.asp?ticker=RPTN&id=3116&play=yes
which got me excited on there innovative new networking technology. I’m not even gonna try to explain in detail what it does because i honesty just cant 
but i will give you some of the highlights and then a link to the video where the CEO explains everything in detail its quite interesting actually.
- up to 100x faster than todays standard network speeds
- 1/2 the price of standard networks
- 20% better links connections
- Standard failover time = 45 seconds, loss of 1.5 trillion packets
Raptor failover time = 2 heart beats, 0 packet loss
Company case study:
LA Care(handles all of los angeles counties health care) needed to upgrade there network system, leading companies in the industry said it was $500k to upgrade with a 10gb backbone. Raptor ended up doing the job for $100k with a 30gb backbone 
According to the CEO: In the next 12-18 months, raptor expects to be certified by the federal government as an equipment provider for the US department of defense, the broader governmental community, and the commercial market.
VIDEO EXPLAINING THE INNOVATIONS OF RAPTOR NETWORK TECHNOLOGY:
http://www.raptor-networks.com/movie.htm
With innovation comes speculation, with explosive chart patterns comes momentum, and with all this combined comes easy money 
I think raptor network technology could make it big in the future. 1/2 the price and 100x as fast……. Seems too good to be true, lets hope not ”
So lets see if my analysis for this innovative product speculation/kick ass chart breakout did anything spectacular. Such as make a 100% run as i had presumed?
Yes, did make over 100% rally after this point. Yet did i make 100%?….. Nope. What i did do though was capitalize on this opportunity and made a short term 34% trade which is an awesome return. Price made a big run after our entry and rallied near 1.90. Whole #’s in stocks under $5 are huge points of support and resistance, I.e. buy/sell points. Although i was feeling good about this stock and continued to hold but eventually broke down the short term pennant formation which forced me to protect the profit and lock in my gain. Now if i felt like a had balls of steel i could have held and watched my profit turn back almost into nothing as price declined sharply from there. But balls of steal can get you into a lot of trouble. More often than not you will be happy that you took that profit. Yet in this case RPTN happened to make a strong rally again. But my point is. Protect the profit, at least sell portions of your gains while you still have them.
Another great product speculation play was SKNN.OB which went from this: Note the pre-warned surge in volume and rally.
TO THIS!
Thats all for now, but i will show another example of a fundamental backed trade and what i look for in stocks charts on the rebound soon.
