Last week, I noted that the IBD 100 had several large gainers and very few large losers. This week, it's the opposite, as there were several big losers and only a handful of large gainers. JOBS was last week's biggest gainer, and is a stock that, despite a reent increase in average volume, still is running on vapors. A stock that trades this thinly rarely develops really good chart patterns, and this is no exception. Had you bought it last Friday (blue arrow) you would be sitting on a decent gain right now, but there was nothing in the chart indicating that this was a buy. It was really just a crap shoot. And you didn't get a good looking waitress bringing you free drinks.
KWR was the second biggest gainer, and is building the right side of a pretty well formed base. Volume increased as price climbed up, which is a classic bullish sign. This will probably start forming a handle soon, and if it does on light volume, with a declining ATR and rising price relative line, then this will probably have a pretty strong breakout.
VLTR was last week's biggest decliner, and got hit on earnings, which is too bad because it was in the process of forming a very nice base. Here is another example of why O'Neil never tries to anticipate breakouts. This bounce right off the 200dma, which is a tempting entry point, but a little too obvious. I wiould wait a few days to see if this settles down and holds the 200 before even contemplating an entry, as this is still a falling knife.
AKAM was the second biggest decliner, and also got hit on earnings, but the pattern here wasn't especially bullish. Even though it was holding the 50dma, the price relative line was weakening and CMF had one quite negative, indicating some big money boys were getting out before earnings.
Here is the current distribution day count in IBD: SPX and DOW 3, Nasdaq 2, NYSE composite 1.
I am not a financial professional, just a guy that trades my own account.
I am also not a musical professional, just a guy that makes music on the computer. Thus, two blogs, one trading and on musical.
And, no, the picture is not me, it is the late, great John Belushi, one of the inspirations for these blogs.
This blog is focused on technical analysis of stocks and markets, putting heavy emphasis on chart analysis. My trading style is derived primarily from my mentor, William "Yoda" O'Neil, and the focus here is on leading and breakout stocks, but all forms of trading are covered to some extent. Economic and political news that effects the market are also topics here, and the blog may occasionally become a platform for my political and philosophical ranting. I keep several spreadsheets on Google docs which track various aspects of the market and readers are welcome to vies and comment on them.
Google Docs Spreadsheets
There are several spreadsheet that I maintain on Google docs to track various watchlists and trends in the market.
1. The earnings list - a group of small and micro cap, low float stocks that have exhibited recent rapid earnings growth. They are modeled along the lines of William O'Neil's CAN SLIM system, but limited to small cap, highly volatile stocks.
2. The relative strength list - a group of stocks which are near 52 week highs and have shown an increase in average daily volume. The list is limited to the top 200 stocks according to my methodology, which will be detailed on one of the pages of the spreadsheet.
It can be accessed here, and is also updates weekly.
3. Relative strength by industry - Uses industry data from Finviz.com to track the percentage of stocks within each industry that are in the top 25% of the 52 week price range, looking for trends.