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Breakouts for Oct 27th: The first pick, AMX, benefited from very strong earnings, pushing the stock to new highs. In addition, the stock has moved above a cup-and-handle pattern as part of an 8-month base. On balance volume has moved to new highs as with price, although the MACD trigger line has yet to crossover it remains above the bullish zero line. GTC orders down to $40.50 can be used to add to a position, but today's closing price is a reasonable entry price. The price target is based on a likely overshoot of psychological resistance at $50. The second pick, GEG, also posted strong earnings. The stock has spent the best part of 7-months forming the bottom of a base, but today's move above near term resistance should be good for a test of $8.24 at minimum and should develop into the RHS of a cup-and-handle pattern off $11.50 highs. The stock has maintained good technical strength over the last 6 months; rising MACD trigger line, slow stochs over the bullish (50) mid-line, and rising on-balance-volume. The third pick, MTH, posted a record profit, pushing the stock to new highs. There is no overhead resistance so the psychological $100 mark is likely to be the next supply point. Excellent technical strength as marked by a MACD crossover over the bullish zero line, on-balance-volume at new highs, and a slow stochastic which bounced off support of the bullish mid-line all point to the completion of a consolidation. GTC buy orders around $80.00 can be used to take a position if looking to get in at a better price.

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"IBD" refers to Investors Business Daily