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Saturday, November 7, 2009

IBD 100

The IBD 100 overall had a pretty good week overall, with a 5.5% gain, but volume is decreasing.With the market in a correction, we hould be looking for stocks that are setting up possible bases. MELI was las week' s biggest gainer, and I had covered it n the breakout on Thursday. Thi i typical of a lotn of charts I have been seeing, with a break of the 50dma.This had a upport level just below, which it bounced off of last Friday. It reported earnings on Thursday, and since I don't buy just before earnings, I would have had to pass on that. It turns out that buying the breakout would have gotten a decent gain, but it i risky to buy before the market get a follow through day.

DDRX was the second biggest gainer, but that i now an acquisition, so I will go to the third bigget gainer, HMIN. Here is another one that had a nasty break of the 50dma, but recovered some of that, but still has a lot of resistance to get through. Buying on the plunge would have been pure luck, as there was no way to anticipate that it would come back up so quickly.

GOK was last week's bigget deciner, and this sure looks like an earnings miss. It was an already weakening stock, having broken the 50dma everal days before. It is probably headed for a date with the 200dma.

TRLG wa the second biggest decliner, and it also looks like an earning miss. Last friday it was sitting right above the 50dma and might have been a tempting entry point had it not been for the close proximity of it's reporting date. It got a nice bounce off the 200dma, but it's pretty much a crap shoot whether it goes up or down from here.

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