Trade Review:(FUQI)

(FUQI) might be the most difficult trade review I have to do, and it was a winner.

What makes it difficult is that strictly following CAN SLIM the stock didn't have a base and should not have been purchased - however, it's been one of the top performing stocks of this rally.

When I bought (FUQI) at the end of may, the chart really did look pretty ugly. The stock had formed a long cup that was far too deep, and it had formed this pattern under $10 making it effectively 'not count.'

What I saw, however, was massive volume on the right side of the chart as the stock climbed out of this deep base. Along with this the RS line was rocketing. I simply couldn't overlook these factors and bought the stock as it cleared a prior high point at $11.75.

I've seen some ugly charts turn in the best performances of this rally - (FUQI), (STEC), and (PWRD) are good examples - and I'd be willing to buy an ugly chart again IF it has the obvious signs of MASSIVE accumulation that these stocks demonstrated.

Of note also on (FUQI) is that I sold early. The stock was behaving very well and showing great strength, and I cashed in for a 20% gain. This stock had acted well enough that I should've allowed it more time to work, at least to let it test the 10 or 21 dma before selling.