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Saturday, March 5, 2011

Leader Charts

 Overall it was about an even week on the leadership list, with about an equal number of gainers and decliners, with no really big gainers, a couple of big decliners, and the rest bunched up right around even. VSH was the biggest gainer, at just over 6%, and caught me by surprise, as it was not one that cuaght my eye at all, mainly because volume was pretty lackluster. Most notable is the well established pivot points, the upper one being broken yesterday. It sis not get the volume to really all this a breakout, but I wuld definitely be paying attention to this on in the coming week. The price relative is showing a very strong stocks here.

 One of the stocks that did get my attention was ALTR, which was conspicously strong all week. Last Friday (the blue arrows represent last Friday's candle) this had just tested the 20dema and got a bounce. Since then it tested it again and got another bounce, but notice the 20dema is putting some distance between it and the 50dam. The only complaint I have here is low volume.

 NVLS was the other one that caught my attention. Last Friday it made a move right up to the upper pivot point, stalled for a couple of days, then broke out. The price relative line is somewhat stronger here than the other two we looked at so far. Volume is a little better here but not by much.

There were two solar stocks on last week's list, and both of them took it on the chin. TSL was fractionally the worst of the two, but also has the slightly better chart of the two (the other being FSLR). Yesterday it hit the 50dma and got a pretty good bounce up, and volume wasn't bad. This is all over the place, making big moves in both directions, so if you are determined to trade something like this, the best strategy is small positions, wide (or no) stops, and try to get as close to a support level as possible, and sell the pops quickly.

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