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Saturday, December 13, 2008

IBD 100

IBD today mentioned the breakouts that have been failing recently. We still have no real leadership emerging yet, and the signals the market has been giving about it's direction are about as clear as mud. Howver, there still are quite a few stocks setting up nicely.

SXCI was last weeks biggest gainer. It broke out on Thursday, but pulled back on Friday to below it's breakout point, technically a failure. Volume was pretty high on Friday as well, relative strength is a bit weak, and CMF has been on the decline. It is still in decent shape. It is not heavily traded, so any volume spikes will make it move sharply in either direction.

`BKR was the second biggest gainer. It has been building the right side of a base, and appears to be topping out and getting ready to form a handle. It will probably be at least a couple of weeks before this attempts a breakout.

ISYS was the biuggest decliner. I don't know the catalyst for Thursday's move, but it didn't come with much warning. Fortunatley the chart as a whole is pretty ugly and should have kept you away, as the big bounce in November was on low volume.

LPHI was the second biggest decliner. This was in the process of building a base. Monday's drop came on high volume, which should have shaken you out. It bounced off a support level Friday, but I wouldn't bet on that holding for long.

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