Leader Charts

As we all know by now, the market took a serious beating last week, and the leadership list was no exception. Out of 16 stocks on the list, there was one that had a positive week, BIP, which ewas up about 2%. This is one of the stocks reporting last week, and it tried to break out on the report, but it was unfortunately the day before the big market collapse. Despite the big move down on Thursday, the price relative line moved up, showing incredible strength. Yesterday it undercut the 50dma, but rallied and closed well above it. This is a classic example of a stock that refuses to go down with the market, and in O'Neil's studies, he found that those stocks are the strongest out of the gate when the market reverses.

CLH would have been the second highest gainer had it actually gained, but it had a small loss on the week. This is another one that reported on the day before the big collapse, also tried to break out, but has a harder pullback. It has so far found support at the 50dma. The price relative is not as strong as BIP but still looks pretty good. This should be watched to see if it can hold the 50dma, but I suspect it will be at least a couple of weeks, if not longer, before the market settles down enough to contemplate buying. 

GPOR was the biggest decliner. This one had gapped up last Friday (the blue arrows point to last Friday), and nearly got to a new high. Since then it has collapsed all the way to the 200dma. The price relative line here is not very impressive, and about all it has going for it is the 200dma, which may be the point of a bounce, but at this point I think that;'s the best you are going to get.

CYOU was the second biggest decliner. It's collapse began on Monday when it reported, and that came after a pre-earnings breakout. Thursday it broke the 50dma hard on volume, and yesterday it tried to get back above it and failed. You don't get a much more bearish situation than that.