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Saturday, May 10, 2008

IBD 100

The IBD 100 had a good week last week, climbing 2.5% overall, and last week's big gainer, SOL, bagged 22%. Last Friday it was pulling back right to support, giving a really nice buying opportunity, and took off from there.

GFA was the second biggest gainer, also pulling back to support. I'm not sure if the gap up on Monday was due to earnings, but judging from the volume I suspect it was.

EXLS was the biggest decliner last week, and looking at the chart, I'm not quite sure why it was on the 100. It looks like it had an earnings miss on Wednesday, but the action on Friday probably would have shaken me out of it.

GFA was the second biggest decliner and is a good example of a failed breakout. I normally use trailing stops when I buy breakouts, so I probably would have been stopped out on the reversal.
It may find support around where it is, and may attempt another breakout. Just before the breakout, there was an ugly bulge downward in CMF, most likely due to higher than average volume selling a few days before. I don't know if that would have been a red flag, to tell the truth I probably would not have paid attention to it.

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