"Overall, we are extremely impressed by DO's accumulation-distribution line, which is now pushing to a new high. That is good confirmation that the breakout has good chances to work.

"We expect the company to show an acceleration in quarterly earnings growth. That is often a powerful driver for a stock. We are targeting the stock for a move to 130 within the next few months. We rate DO an excellent intermediate-term play.

"Meanwhile, Suntech, based in China, makes photovoltaic solar cells (PV cells) and solar electric systems. It is the third largest solar cell maker, with annual revenues of $600 million. Technically, the stock has just broken above a 14-week cup and handle base.

"STP is poised to show an annual acceleration in earnings growth. That is very bullish. This year, analysts predict a 49% increase in profits and next year a 60% gain. The stock sells with a price-earnings ratio of 41, which is high, but reasonable given the profit growth.

"Meanwhile, sponsorship is very good. The largest fund holder is the giant Fidelity Magellan Fund, with a big 4.8% stake. It has held its position steady. The largest fund buyer lately was Fidelity Growth & Income Fund, which purchased 2.5 million shares. Also the 5-star rated Fidelity International Discovery Fund bought 809,000 shares."

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