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Saturday, November 15, 2008

IBD 100

On Thursday, INT showed up on my breakout scan, and since it was an unknown I said i needed to do some research into it. It turns out not only was it on the IBD 100, it was last week's big gainer. This week it is #7, has a float of 26m shares, growing earnings, but in a long term (3 year) downtrend, which it may be in the process of reversing. The lesson here is I need to pay closer attention to the IBD 100.

NCIT was the second biggest gainer, thanks ton huge increases Thursday and Friday. When a stock gets stuck in a large trading range, it is difficult to pick out support and resistance levels. One thing of note here is the reverse head and shoulders pattern, with an ascending neckline. A break of that neckline is jsut about where the breakout point for the trading range is.

SYNA was the biggest decliner, and it just got hammered on high volume. Last Friday it looked like it was building a base, but selling picked up, and when it broke the 200dma, it was bombs away.

FELE was the second biggest decliner. It is not very heavily traded, that is, until last week when it was heavily sold off. This was in the process of building a base, but the heavy selling taints it badly.

IBD points out that despite last week's weakness, the iBD 100 for once outperformed the major indexes, which is a very positive development. Even though IBD has the market in a correction, there is a real good chance of seeing more strength this week.

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