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Saturday, June 20, 2009

IBD 100

It appears that my data matches IBD's data this week. STEC is one we've been looking at for quite a while, and was the biggest gainer on last week's IBD 100. It has been in a hugely powerful uptrend, and Monday may have given us the last buying opportunity we will get in quite a while, as it pulled back to support on low volume. It then broke out on the biggest volume yet. This is way over extended and may be close to topping out.

CVGW is another one that has been catching my attention recently, and also got IBD's attention. Last week it was the second biggest gainer. on the first breakout in May, the price relative line was weak, indicating a possible breakout failure, but insteadd of failing, it formed a high handle, the price relative line strengthened, an this week it broke out again. This will probably form a second base soon, and according to IBD, second bases usually result in the biggest gains.

CSKI was last week's biggest decliner, and is a strange looking chart, in that it made a high volume breakout the week prior, got no follow through, the collapsed on high volume shortly thereafter, with very little warning. It is trying to find support at the 200dma, but it appears to have a lot of selling pressure right now.

CXG was last week's second biggest decliner, and appears to be pulling back with the rest of the energy sector. It has gone throught the 50dma, and volume is higher than I would like to see on a pullback, but it is at a support level and may get a bounce here, or it could be in the process of forming another base.

The IBD 100 outperformed the overall market this week, adding fuel to the bulls thesis that the market is still strong. There aren't a lot of industrial powerhouse names on the IBD 100, but new bull markets are not going to be lead by old leaders. If we indeed go into a long bull run, we'll be talking about leaders that two years ago we would have said "who are these guys?".

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