Pre-open 02-07-2006...

I think this is my first official watch list in a long time. Recently, I've been hiding candidates in other posts (not too worried about positions as I was fully invested). But now that I've left the poor SBIB and HOTT trades, I am ready to find the next winner.

Five nice charts to present, a couple are real beauties: HHS, MRX, MMM, PTV, and SSP

As always, I'll be watching the stocks, their sectors, and the market to see if my criteria are met.

Also, I am considering a new trailing stop method for my first targets. It seem ad hoc and slightly fortuitous to 'predict' targets based on support and resistence. Instead, I maybe should consider a target/stop loss system similar to the one I use once I've reached my first target. The problem is using a standard % does not work for all stocks. I could use an 'average true range'/historical volatility measure instead, but I may be introducing unknown downside risk. I may need to consider the initial stop loss as a mix of both support and % changes. I don't know, it is something to consider. I can demonstrate the problem with my current method. Look at TYC, I bought after the engulfing on the 23rd and got stopped out the next day. Had my stop been a little less tight--ring the register!!! So, there needs to be a compromise somewhere, I just don't know how to do it yet without introducing too much risk.

Anyways, for now,
Masterjaz out