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Saturday, July 2, 2011

Leader Charts

 Last weekend I noted that, despite a relatively weak market, the leaders had had a very good week. That may have been an omen for what would happen this week, as both the market and the leaders overall had over a 5% gain. Leading the leaders was EGHT, with over 20% gained for the week.  Last Friday (the blue arrows are last Friday's candle) saw this retest a breakout point, and may have been the last decent entry point this is going to give. It is not at the point of a blow off top yet, but that could come at just about any time. 

LULU was the second biggest gainer at just over 10%. This has been in a very powerful up move after a scary drop in May. This is in a new trading range, so I basically have to guess where the pivot points are based on retracement levels. Here, too, last Friday gave us what will probably be the last decent entry point for a while, until we get an idea of where the new range will be.

ZAGG was the biggest decliner (and one of only two decliners on the list), and is pulling back after yet another breakout, but this time the pullback is on pretty high volume, so I would not be buying the dip here. This is probably going to form a short base here.

CF was the other deliner. This was forming a bullish consolidation late in may, but had a high volume breakdown that took it below the 50dma, and it has been struggling with it since, It;s inability to bounce back may be an indication of another drop coming, and the 200dma is getting closer, so at this point I wouldn't contemplate an entry here unless it does hit the 200 and bounces off, but even if it does, you have to be cautious here, because the volume pattern in the last month really looks lousy.

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