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Saturday, August 23, 2008

IBD 100

Last week's IBD 100 reflected the bounce in commodities and oil that we got midweek. Overall, energy stocks did quite well, most everything else did mediocre to poorly. Oddly enough, CLR, last week's #1 and in the top tier for several weeks, has completely disappeared from this week's 100 with no explanation, despite a positive week. CF was last week's biggest gainer, as it bounced off the 200dma. It has some overhead resistance coming, first at the 50dma. CMF shows not a lot of distribution while it went down to the 200dma, but the increase during the bounce up has been mediocre, and relative strength is so-so. It seems the big money has not committed either to getting out or putting more in.

GMXR is one of the stronger energy stocks, and the second biggest gainer on the IBD 100. Lasr week it bounced off a support level and went through the 50dma, which appears to be supporting it now. CMF is starting to increase after several months of decreasing after the peak in April. Let's see if that continues. One thing I might look at when I get a chance is the relative strength of several energy stocks in relation to the energy sector. If oil is reversing (and that is a big if) then the strongest stocks will get the biggest bounces.

NDSN was the biggest decliner last week, all coming on an earnings disappointment. Oddly enough, CMF gave a warning sign a few days before when it went negative. you don't suppose somebody had inside information, do you? Nah. It may be tempting to try to catch a bounce here, but this is a broken chart. I wouldn't touch it now.

ISYS was the second biggest decliner, pulling back to the 50dma, which normally would be a good entry point, but the volume was awfully high. Other than that, this isn't a bad chart.

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