This morning I used Barchart to screen all the stocks with over 100K volume per day that were hitting the most frequent new highs and came up with a very interesting pick Exar Corp (EXAR). I found it because of its recent activity but on further review found another Seeking Alpha article saying it is an insider buying pick. I've invest long enough to know that when a stock starts being bought up during a recession it means one of 2 things: 1 - the stock has great unannounced prospects for the future or 2 there might be an unannounced merger in the near future. Before you all jump on me saying there are insider trading rules, all you have to do is look at any merger and then look at the activity in the acquired company in the month before the acquisition. Please look at this article: "4 Semiconductor Stock Being Bought up by Insiders" .
Barchart technical indicators:
- 80% Barchart technical buy signal
- Trend Spotter buy signal
- Above its 20, 50 and 100 day moving averages
- 13 new highs and up 19.79% in just the last month
- Barchart computes a technical support level at 6.725
- Relative Strength Index 67.26%
- Recently traded at 6.76 with a 50 day moving average of 6.09
Summary: If you like speculative plays this has a lot in your favor. EXAR is expected to have increased revenue and earnings and insiders are buying it up. The recent price movement as evidenced by this 14 day turtle channel provided by Barchart shows you can't wait for a dip
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