The 40 Hottest Stocks to Watch

by Darrin Donnelly on January 5, 2011

A new year is officially here and that means new market leaders are emerging.

Here’s a list of the 40 hottest, fastest-moving growth stocks on the market right now. 

As Darvas traders, our goal is to whittle down this list of 40 to the handful of stocks that make up the very best of the best.  We only want to be trading those ELITE market leaders. 

In Darvas Trader PRO, you’ll find the stocks that make that elite list.  But for a broader view of candidates you might want to consider trading, here’s a list of 40 stocks with tremendous Darvas potential.

AAPL – While I just don’t think AAPL has what it takes to be a true “Darvas stock” (with the potential to double in value over the next 6-12 months), you have to follow this stock as it has become a strong indicator of the market’s health.

ALTR – This stock hasn’t touched its 50-day moving average line since September and it’s currently finding support along the 10-day line.

AMZN – Here’s another leading indicator of the market’s health, which makes it a must-watch stock.

APKT – Just broke out of a Bull Flag pattern on Monday and surged into new-high territory on Wednesday.  This one has all the makings of being one of the leaders of 2011.

ARUN – After a rough December, this stock is getting some nice volume behind its rebound back above the 50-day and 10-day lines.

ASYS – A fast-mover and big-earner that needs to be watched closely.

BIDU – After falling apart in December, BIDU is perking up and making a run at climbing back above its 50-day moving average line.  Keep an eye on how this stock reacts to the 50-day line.

BTU – A strong earner with the potential to be a big winner, but so far this stock has had trouble around the $65 mark.

CCME – This stock is WAY off its highs, but it’s now getting support around the 50-day line. 

CIS – Erratic action the last few days has tainted this otherwise good-looking growth stock.

CMG – Something tells me this stock’s best days are behind it, but it’s proven many traders wrong before.

CRM – After a fast sell-off in December, it’s finding support at the 50-day line.

DECK – The price action isn’t too bad, but slower projected growth will make it hard for DECK to repeat its stellar 2010 performance.

EXPD – Still trending higher as it trades well above its 50-day line.

FFIV – Has the potential to repeat its awesome 2010 performance.

FN – This stock has doubled since its summer IPO and has strong earnings pushing it higher.

FOSL – Good-looking price action right now, but can it produce the kind of growth numbers needed to be a market leader in 2011?

GPOR – There’s good reason to expect energy stocks to shine in 2011 and GPOR is in a good position to be one of that sector’s hottest stocks.

GSIT – I don’t normally trade stocks that are this cheap, but this recent IPO’s price action and big earnings has my attention.

JOBS – This stock is hitting the 50-day line for the first time in six months and it looks to be finding buyers.

LULU – This stock has been on fire over the last few months and looks like it needs to form a new base here.

LVS – The gaming stocks have been hot and LVS is trying to regroup and join the fun.

MIPS – A smaller tech stock that is up 350% in six months!

MOS – Here’s a stock that just had an outstanding earnings announcement and could be a leader in the red-hot fertilizer sector.

NFLX – We had a great run with NFLX in 2010, but all signs point to the end of its trend.  Still, this stock doesn’t like to be counted out.

NTAP – This stock looks good technically, but growth is expected to slow.

OPEN – An outstanding surge off the 50-day line Wednesday tells me this stock is poised for a strong future.

PCLN – This huge earner had a nice, high-volume breakout of its Flat Base on Wednesday.

POT – This fertilizer stock that just recently surged out of a LONG base.  Could be just the beginning of a huge run in 2011.

REE – Not a stock that I’d trade (call me silly, but I only like to invest in companies that have actually earned money), but REE can’t be ignored as its price-volume action is phenomenal.

RVBD – This stock recently broke out of a three-week base, now we’ll see if it can extend its gains.

SAM – This stock is pulling back after a huge gap-up in mid-December.  We should see this stock find some support soon and then take another run at breaking through $100.

SLW – After a rough sell-off over the last few weeks, SLW found clear support at the 50-day line on Wednesday.

SVM – Here’s another hot silver stock that has just found support at the 50-day line.  But you should use extra caution when dealing with stocks under $15 like this one.

SWKS – Here’s a big winner with strong earnings.  The stock is very extended at this point, so we’ll have to wait for it to form a constructive base before buying.

TQNT – Here’s a cheaper stock that has big earnings and just broke out of a very nice-looking Rounded Base.

VMW – This stock recently broke into new-high territory and it’s now doing a nice job of extending its gains.

WGO – Maybe it has something to do with that cult movie about the “Winnebago Man,” but whatever it is, this stock’s action and earnings can’t be ignored right now.

WLT – This is the top-performing energy stock on the market right now.  I’d like to see it rest sometime soon, but it hasn’t shown any signs of slowing down so far.

WYNN – This is the top casino stock to own.  It once again broke into new highs earlier this week.

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* You can access the full portfolio of Darvas stocks – with EXACT buy points and sell points – in the latest issue of Darvas Trader PRO by clicking here.

{ 2 comments… read them below or add one }

Growth Stock Investor January 5, 2011 at 10:31 pm

Yes,we do have a similar trading style.I have many of these on my watch list too. I like MIPS. One like that I don’t see here is IEC, small circuit board maker. I am also considering 3D Systems (TDSC), but that’s Is not so much a Darvas Stock

Reply

Darrin Donnelly January 5, 2011 at 10:52 pm

Hi There,

IEC is a little too cheap for a Darvas stock, but it’s definitely moving and has solid earnings.

TDSC is an interesting one. After years of operating without a profit, they’re suddenly starting to show some strong earnings and the growth is expected to continue. Technically, it looks like it really woke up in October. I also really like its bounce off the 50-day line today. Definitely one to keep an eye on.

Thanks for joining the conversation!

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