Expanding on Ugly's Wisdom

Ugly wrote an intriguing post last month in which he said the following:

Let's look at CMT and FORD to figure out what Ugly is talking about; here's CMT's chart:

CMT, Weekly Chart

Back in March, CMT moved to a new 52-week high on huge volume. Price had been stuck in a range between $2 and $4 for about a year and a half. CMT has a 5.2 million share float, so it's a super "tight" stock.

So I guess the lesson is: 1) do a scan on the weekend that finds all the stocks that are at new 52-week highs accompanied by unusually large volume; 2) scan through the selected charts to find the stocks that have been moving sideways for some time (the longer the better); 3) check the stock's float to see how tight it is.

Here's FORD's chart:

FORD, Weekly Chart

Last December FORD moved to a new 52-week high on huge volume. Price had been stuck in a range between $1.50 and $3.75 for nearly two years. FORD has a 6 million share float, so it's also a super "tight" stock. In January 2005, FORD made another explosive move that you should have noted at the time.

Let's review the steps to find these potential screamers: look at the new highs list, note the stocks making new highs accompanied by crazy volume, check to see if the stock has been moving sideways a good long while, and finally make sure the stock has a low float. By following these steps, you too can find these insane movers. This is apparently what Ugly does.

Maybe I'm mangling Ugly's methods, but that's what I see when I look at the weekly CMT and FORD charts. Did I leave anything out, Ugly?

Recapping Recent Chats

Here are the charts we discussed in recent chats:

Charts featured in the July 3, 2005 chat:

• Aetna (AET) - quarterly chart
• UnitedHealth Group (UNH) - monthly chart
• WellPoint (WLP) - weekly chart
• Community Health (CYH) - weekly chart
• Triad Hospitals (TRI) - weekly chart
• Japanese Yen - yearly chart since 1860
• Lionbridge Technologies (LIOX) - 15-minute chart
• streetTRACKS Gold Shares (GLD) - 60-minute chart

Charts featured in the June 26, 2005 chat:

• Crude Oil (Continuous Contract) - weekly chart
• Natural Gas (Continuous Contract) - weekly chart
• EOG Resources (EOG) - monthly chart
• Southwestern Energy (SWN) - monthly chart
• XTO Energy (XTO) - monthly chart

Charts featured in the June 19, 2005 chat:

• Panera Bread (PNRA) - monthly chart
• Darden Restaurants (DRI) - monthly chart
• Domino's Pizza (DPZ) - weekly chart
• California Pizza Kitchen (CPKI) - weekly chart
• Yum! Brands (YUM) - monthly chart
• Internet Initiative Japan (IIJI) - 15-minute chart
• Light Sweet Crude (CL) - 30-minute chart
• Dynamic Materials (BOOM) - 5-minute chart

Charts featured in the June 5, 2005 chat:

• Boeing (BA) - monthly chart
• Chicago Mercantile Exchange (CME) - weekly chart
• Google (GOOG) - daily chart
• KB Home (KBH) - monthly chart
• Toll Brothers (TOL) - monthly chart
• Sears Holdings (SHLD) - weekly chart
• Urban Outfitters (URBN) - monthly chart
• Internet Initiative Japan (IIJI) - 15-minute chart
• Google (GOOG) - 15-minute chart

Oopsie

Bad keystroke leads to $251M stock buy:

The software shouldn't allow this kind of thing to happen of course, and I'm surprised regulators didn't just break all the trades. The golden rule is always to reverse the mistaken trade instantly, but you can't do that with an error of this magnitude... as they say in the article, "there are no plans to sell the shares in the near term."