[isatrader]

I went hunting for some quality Stage 1 or 2 setups today and landed in the Marine Transportation group which appears to have some life in it. I had recently bought BALT @ $4.74 so I knew that the Industrials sector was at least in a 2B and the Marine Transport group looked to be in a solid Stage 2.

My current favorite of those I found is PRGN as it rose about 40% since its breakout about 2 weeks ago on a great volume spike. PRGN was in a Stage 1 base for about a year prior to this. It’s above the MA, the MA is starting to rise, the relative performance is rising and just popped over the zero line, and finally cleared its overhead resistance. The current P&F price target is $17.75. EGLE and GNK also have a lot of potential.

Here is the list of others that I thought looked interesting from this segment:
ANW, DHT, EGLE, ESEA, GLBS, GNK, PRGN, SBLK, ULTR, VLCCF

I think it's a really interesting group, and I've highlighted a number of them over the last month when they appeared on my daily breakout scan. BALT, PRGN, and VLCCF on the 16th Aug here: http://stageanalysis.net/forum/showthrea...83#pid1283 and SBLK on the 27th August when it was breaking out into Stage 2A here: http://stageanalysis.net/forum/showthrea...46#pid1346, so it's interesting to see that there's other stocks in the same group moving strongly as well, and as you know this is a major part of Weinstein's method and makes up one third of the "Forest to the Trees" approach (read pages 75-91 in the book).

I see you mentioned the point and figure price target. This varies depending on the scale of the chart you are viewing, so don't rely on this until you have more experience with using point and figure charts, as for example if you used a percentage based chart based on it's recent average true range of roughly 6%, the point and figure price target would be 9.73, and if you used a 1% point and figure box size, the price target would be 10.05, as the traditional box size method is less useful when stocks get down into single digits, so I'd personally suggest using percentage based box sizes when looking at targets. And as I've said before you should use a logarithmic scale on your line charts to be able to see what is happening more clearly when a stock begins to base after a large decline.

For Weinstein's method the main way of calculating the price target is to use the "Swing Rule", where you measure the move from the size of the base. Which in the case of PRGN would give a swing target of 9.49 imo. See page 202 for a full explanation of this.