The 40 Hottest Stocks to Watch

by Darrin Donnelly on February 9, 2011

Each month at DarvasTrader.com, I publish a list of the hottest, fastest-moving growth stocks on the market right now.  These are the stocks Darvas traders should be watching for new breakouts, bounces off of key support levels, and as indicators of industry and market strength.

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 AAPL is acting its size and moving slower than the typical Darvas stocks we like to trade, having a slow and steady grower in the portfolio isn’t always such a bad thing.  Plus, AAPL continues to be a major indicator of the market’s strength.

AIMC – This company has very high growth expectations and the stock has been on a strong run since dipping below the 50-day moving average line around $19. 

APKT – After a harsh sell-off at the end of January, big earnings helped APKT rebound quickly and climb back into new-high territory.

ARUN – This stock is working on a nice Rounded Base that might be turning into a classic Cup With Handle Base.

ASYS – This stock experienced an ugly reversal after its earnings report Tuesday.  Still, keep an eye on it in the days ahead as it could end up reversing higher or building a new base.

BIDU – At times, this stock has looked as though it has run out of gas.  However, after breaking into new highs at the start of February, BIDU has regrouped and looks ready to continue its rise. 

BRKS – Here’s a stock that looks like it wants to keep moving higher and is finding support along the 10-day moving average line.

CLF – Look for this big-time earner to consolidate prior to its earnings announcement next week and then be ready for a big move one way or the other.

CLFD – I barely ever trade stocks that are priced this low, but CLFD’s earnings and technical action can’t be ignored.  This stock has the potential to form a classic Bull Flag/Darvas Box right here.

CMG – This hot stock spent some time below the 50-day moving average line last month, but is now climbing up the right side of its base.  It’s definitely one to keep an eye on when it reports earnings Thursday.

CRUS – Here’s another top-earning stock that could be trying to form a classic Bull Flag pattern here.

DE – This stock isn’t one you’d normally associate with high-beta growth stocks, but DE just keeps on racing higher and producing strong earnings. 

DECK – After spending a little time below the 50-day moving average line, DECK has regrouped and looks ready for a run at new highs.

DHX – Big earnings are expected from this company in 2011 and right now, it looks to be working on a potentially powerful Bull Flag pattern.

FFIV – While still trading a good 15% below its highs after the company’s recent earnings report completely crushed the stock, FFIV’s price-volume action these last two weeks is looking very constructive.

GPOR – This energy stock recently gave us a picture-perfect breakout and has raced to new highs.  Just this week, it’s finally pulling back.  GPOR is currently testing the 10-day moving average line around $24.00 and finding support here would be a very good sign for this stock.

HAL – Here’s another hot energy stock that has the potential for a big run in 2011.  It could be in the beginning stages of a new base.

ININ – This stock broke out of a good-looking Rounded Base on Tuesday.  Now we’ll see if it can maintain that breakout level.

IPGP – Sky-high earnings expectations are driving this stock higher, but these types of “priced to perfection” stocks can get pummeled by a mediocre earnings report.

JOBS – This stock has put together a nice little base with resistance around the $60 level.  It reports earning during the first week in March and that could give this stock the fuel it needs to break out.

LCRY – Strong earnings and high expectations have investors taking notice of LCRY.  This stock may be consolidating just under the $15.00 mark and preparing for a big run.

LULU – This stock gave us an ideal breakout on February 4th and it continues to act like a true market champion.

MGIC – This stock has had an amazing run over the last six months and it continues to trend higher with support at the 10-day moving average line.  Look for it to possibly run into resistance at $10.00 and build a new base at that point.

MOS – This company was punished back in January on news that Cargill would be selling its huge investment in it.  Since that time, MOS – still a company with great earnings and big expectations – has rebounded nicely and it is flirting with new highs.

NFLX – Like BIDU, NFLX often looks like its running out of gas and lulling traders to sleep.  It’s at those times when the stock suddenly perks up and surges higher.  Strong earnings and high growth expectations continue to drive this stock.

OPEN – After reporting earnings Tuesday, this stock is trading erratically.  And actually, OPEN’s price-volume action has been a bit odd for the last two weeks.  I’d like to see this stock settle into a sound base.

OPNT – This stock got a huge bounce two weeks ago thanks to its earnings announcement.  It now looks to be testing the 10-day moving average line.

PCLN – Here’s a stock that likes to make big moves on earnings announcements.  That’s something to be aware of as the company reports earnings in two weeks.

POT – This stock continues to trade well, but look for some consolidation soon.

RAX – This stock found support at the 50-day moving average line after a brutal gap-down back in January.  Since that time, it’s been on a very nice run.  It’s too extended to trade right here, especially right before the company reports earnings on Thursday.

RVBD – This stock was rocked during the market’s “cloud company” sell-off in late January.  RVBD has since quietly rebounded and is nearing new highs.

SINA – A recent “weak” breakout hasn’t slowed down this stock as it continues to notch new highs.  I’d like to see it do some resting and form a proper base soon.

SOLR – The solar stocks are all over the place, but if we see this industry stabilize in the coming weeks, I really like SOLR’s potential.

SWKS – Strong earnings continue to power this stock higher, but I expect to see it form a new base soon.

TTMI – This big-time earner has formed a nice Rounded Base that could lead to a breakout when the company reports earnings after the bell on Thursday.

UA – This is one stock that big funds simply want to own.  It’s had a fast and strong run since its February 4th breakout and will likely need to consolidate a bit soon.

WGO – After a breakout failure at the end of January, this “recession recovery” play is once again trading within a top Darvas Box.

WLT – This energy stock has been consolidating for the past five weeks.  Next week’s earnings announcement should move this stock aggressively one way or the other.

WYNN – The gaming industry’s leading stock has had a great run that will most likely either be abruptly ended or aggressively extended when it reports earnings after the bell on Thursday.

XOM – Energy is likely to be a leading group in 2011 and you can’t talk about energy stocks without including XOM.  This blue-chip company is not your typical fast-moving growth play, but – like AAPL – it needs to be watched as an excellent indicator for its industry.
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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.

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