Sales Acceleration: Reading the Revenue Sequence in CAN SLIM

Two growth companies report on the same evening. The first posts revenue up 38% from the year-ago quarter, and the headline reads well. The second posts revenue up 33%, which…

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IPO Base: Reading the First Consolidation in a New Stock

A company lists with an offer price of $22.00, opens at 31.50, trades as high as 38.20 in its first session and closes at 34.10. Six weeks later it's trading…

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New Product Catalyst: Judging the Story Behind a Leader

A mid-sized company issues a press release before the open. It describes a new product as "transformational" and "category-defining," names a large partner, and quotes a market-size estimate in the…

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Earnings Gap: Reading a Stock’s Reaction to Results

A growth company reports quarterly earnings per share up 41% on sales up 28%, both ahead of the published estimates. The stock opens 12.2% higher the next morning. By the…

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Leading Stocks: Reading a Leader Group Against the Index

Picture an index chart that looks healthy. It closed the week at a new high, its 50-day moving average is rising, and the heaviest volume sessions of the month were…

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Institutional Sponsorship: How to Read the I in CAN SLIM

Picture two growth companies that pass the same earnings screen in the same week. Both reported quarterly earnings per share up more than 40% for two straight quarters, both sit…

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Flat Base Pattern: How a Shallow Consolidation Forms

A growth stock has climbed from 42.00 to 68.50 in fourteen weeks, and then it stalls. For the next seven weeks the weekly bars drift sideways. Price never trades above…

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Fundamental Law of Active Management: Skill and Breadth

Two research decks land in the same week. The first belongs to a manager who called four big macro turns over three years and got every one of them right.…

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Prediction Intervals: Reading Forecast Uncertainty

The band around the forecast is a claim you can test A forecasting model hands you two things at once. There's the number everyone reads, say a projected close of…

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Read more about the article DQ +592%: base breakout to an eight-month run, June 2020
DQ on the 2020-06-23 breakout entry, from my chart archive

DQ +592%: base breakout to an eight-month run, June 2020

DQ is back on traders' screens this week, so it's worth pulling up the chart that mattered most. In the summer of 2020 the stock closed at 13.77 on 23…

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