In the comments of the last post, Raj asked:
What do you think of CMI? It has pulled back well to previous support levels.
CMI is pulling back towards a strong area of support after a nice breakout. Where you enter depends on your strategy. If you are a stickler for entering as close to support as possible, you may want to wait to see if the stock can pullback $125-126 in low volume. An entry now, at the current levels would still give you a good reward to risk ratio, if using the recent high as your target. This allows you to enter with adequate risk parameters and without fear of missing the next leg up. This was my strategy with today's FWLT trade.
Technically, OBV and stochastics are both rising and forming higher lows, which is the sign of a strong, trending stock. My only concern is that accumulation is not as strong as some of the other momentum players. While OBV has been rising, up days have only slightly out-measured the volume on down days. Compare CMI to the chart of FWLT in the last post, and you'll notice the difference in accumulation. That's why I prefer FWLT to CMI, although I do think gains can be had from CMI.