JNPR 

I want to look at Juniper Networks ( NYSE: JNPR ). This is stock that we bought on the breakout a couple of weeks ago. We are not up a lot, but we are up nicely. And the reason we are not up a lot is that, (1) we haven’t held the stock for that long and if you want a big profit you have got to hold for a big move, you’ve got to hold for a while.

But then the other one is, this just isn’t really that volatile, it is just coming out of this symmetrical triangle. Really, really nice volume on the days; one of the big reasons why I wanted to take this stock. And now we’ve got another one, this was last Friday, which you would expect, options x, and this Friday is another nice volume day.

If we look at the weekly chart, this is one of the things that I really like to see because this stock now has broken out to a new high. I think it used to be higher years ago, yes definitely, I remember that. That’s when all the geniuses here were turned into all the dunces there. On the weekly chart, this is looking strong too. It is out of a nice base that has lasted about 4 months or so.

Here’s the thing, I wouldn’t buy this stock right now but I would absolutely watch it. This is probably even going a bit higher, with this kind of momentum. We could see it run up a bit more. I just think it’s risky to buy it there, though if you want to, hey man, we’re still going to be in it. But I would probably want to wait for a safer entry, which would be a little bit of a pullback.

Anyway, this is how we are trading stocks now. We have to adjust our entries, we have to adjust our trades according to what the market is giving us, as long as they are not too far off what our edge is.

AQUA 

This is Scott with your Chart of the Day. I want to take a look at Evoqua Water Technologies ( NYSE: AQUA ). As you can see, Evoqua ( NYSE: AQUA ) is in a nice uptrend. It is above all the major moving averages and within 9 percent of its all-time high.

Now, when the market is choppy and weird I like to pay attention to stocks that are near to their all-time highs. Because stocks that are near their all-time highs tend to make new highs. And so I think Evoqua ( NYSE: AQUA ) or AQUA, is in an interesting spot here because we are above all the major moving averages.

And as you can see we are finding support right around that 8-day exponential period moving average. I can draw a little bit of a downward sloping trendline and it gives us a little bit of a flag here. What we want to see from AQUA ( NYSE: AQUA ) is a strong move above that coming on higher than average volume.

Now, within t his consolidation it has been pretty healthy price action. Look at the volume here, it goes up on high volume, pulls back on low volume, and today, just a nice quiet inside day, kind of indecision. No one is really aggressive, buyers aren’t aggressive and the sellers aren’t aggressive, so I love this quiet consolidation day.

And so, at stockmarketmentor.com I suggest that our members take a look at this chart and watch it to hold above this low here at around 44.15. If it breaks below 44.15 it is not really making higher lows, it’s making lower lows. So if this stock does break out and then come back and breach that 44.15 level, that is probably something that you will not want to be in.

What I also like about this stock is the fundamentals. So let’s bring in the chart from MarketSmith. As you can see here on the Earnings and Sales they have had increasing positive earnings and sales over the last four quarters. They were down -7, down -5, and then positive +3, and this last round +100 percent, so increasing earnings and sales.

We like that, and as you can see, has a nice RS rating, a decent accumulation/distribution. And in terms of Fund Ownership, Lord Abbett has 1.75 percent of their fund in AQUA ( NYSE: AQUA ). I like that there is a big fund involved in one of the IBD Mutual Funds in this stock. Because we want to be in stocks that the big money is in.

I think that AQUA ( NYSE: AQUA ) is definitely a stock that we should keep an eye on. We will want to watch for a strong break above that downward sloping trendline coming on higher than average volume.