Quality Systems (QSII) was one of two names we highlighted on our weekend summary ...
As for QSII strangely it has not participated in this rally - that is bearish. On the other hand it has become a coiled spring trading in a narrow range between $52 and $55 for a period of 12 days. The longer a spring is coiled, the harder it breaks. While it gives me great pause to watch a stock not participate in such a strong rally, I'll be looking to give this some extra exposure if it breaks upward, as it right at the top of its recent range. A relatively tight stop loss can protect us to the downside.
... following the game plan, the stock appears to be breaking out of its range (although volume is very low) so we'll go in for some more. I'm adding a 1% exposure to take this from a 1.5% stake to 2.5% just over $56. This is one of the few names we can actually buy who has a decent chart, and is not extremely overextended nor not near any support levels. Therefore if we are wrong we can escape with mild losses.
Long QSII in fund; no personal position