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Saturday, September 26, 2009

IBD 100

For the first time in quite a while, my data completely agrees with IBD's data on this week's biggeset gainers and losers. CHBT was last week's biggest decliner. It is a very thinly traded stock, and has not formed a coherent chart pattern. It must have a small float, because any decent increase in volume sends this rocketing in one direction or another. Since there really isn't a pattern, it's hard to spot a buy point, although the previous high at 15.04 looks as good as any, and that is where it was last Friday. Apparently a lot of traders thought so too, as passing that point brought in an increase in volume.

RAX was the second biggest gainer, and is a fairly recent IPO. It has been in a steady uptrend for over 6 months now, with lots of accumulation, forming an odd shaped base starting in June. Last Friday it, too, was just below the breakout point, and got the volume it needed to break out this past week.

I think last week AMSC was one of the big gainers, but this week it's the biggest decliner. This suffered some high volume selling during the week, and broke the 50dma. It migh find support at the gap, but even if it does, it will probably be ding some more base building here.

RIMM was he second biggest decliner, and it came on earnings. Normally the second biggest decliner is the most bullish looking chart, but not this week. The good news is it stopped at a support level; the bad news is it might not hold for long. The 200dma is not far below, which should be a stronger support level. It looks like a lot of traders made lucky guesses the day before earnings came out. I wish I was that lucky.

Unlike previous sell-offs in this rally, IBD has not pushed the panic button yet. They still have the market pulse at "confirmed uptrend", probably because the distribution day count is low (3 on the Dow, 2 on SPX and NYSE, 1 on the Nasdaq).

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