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Saturday, July 30, 2011

Leader Charts

 It was another tough week on the leadership list, with only 6 stocks advancing this week, but we did have 3 gain over 10%, thanks to earnings reports. QCOR was the biggest gainer at almot 14%, but it all came on the gap up on earnings, so if you waited until after it reported to bu, you missed most of that gain. Last Friday (blue arrow) it was in a bullish consolidation, but again, you really don't want to buy right before it reports. This has a history of making pretty big one day moves, then going nowhere for a few weeks, then doing it again, and so far, it is following that pattern.

CYOU was the second biggest gainer. It broke out of a bullish cup and handle on Monday, and has been moving up since, although on lower volume. It has bucked the market trend as evidenced buy the price relative line. The only problem here is that is is getting a little extended and might pull in to give another buy point. Of course, it doesn't have to, but I wouldn't try to chase it.

AGP was the biggest decliner, and had an apocalyptic drop on earnings yesterday. This on is don fo probably a long time as a leader, but still presents some trading possibilities for the more risk loving traders. I noticed, after drawing the 2 pivot points I have here, that yesterday's low looked like it was equal distance away, and after putting up the fibonacci grid, it was exactly in the right spot. Had you been watching this, and new where that point was, you could have put in a limit order and waited to see if it hit it. In this case, you would have had one hell of a nice day trade.
VHC was the second biggest decliner, and in keeping with tradition, may be the most bullish chart of the bunch. It just pulled back to nearly exactly the 50dma and is now sitting above it. the drop from the high to here was pretty large, but when it was at the high it was more than double the 200dma, so it was due for a pullback. I have August 10 for an earnings date here, so it's probably safe for a short term trade. The only real problem here is that there 3 relatively high volume down days in the last couple of weeks, and a high ATR line, indicating high volatility.

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