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Saturday, August 13, 2011

Leader Charts

The leadership list, as small as it was this week, reflected the overall market, with about the equivalent number of gainers and decliners, and overall slightly down on the week. ZAGG was the biggest gainer, coming after a nasty drop the week before. Last Friday (the blue arrow) this dropped right down to the 50dma, but on high volume and in a weak market probably not a good time to buy. It has since had a weak bounce (although strong enough to make it this week's biggest gainer), and volume has dropped off, a classic bearish setup.

RGR was the second biggest gainer, and has the best chart of the bunch. It also had a farly big drop, but has gotten a stronger bounce on better volume. The volume is still declining as it goes up, so this is probably not ready for a buy now, but with the price relative line rising the way it is, this one is not likely to collapse anytime soon.  This i a good example of what i am looking for: those stocks that, when the rest of the market is selling off, do not.
 CHRM was the biggest decliner. This is one that ordinarily would not make the list because of the low volume, but last week I had so few stocks make the cut that I left out the volume cuts. It has a very strong support level right about 13.30, which it is fairly close to now, and a strong price relative line, but down volume has been higher than average the last few days. It is too thinly traded for me to consider now, but if it starts increasing in volume it is probably worth looking into.
DGSE was the second biggest decliner. This originally made the list because of the burst of volume it got in the last 2 months (along with a pretty good move up), but has had an awful lot of high volume down days recently, and like several other stocks, is getting a low volume bounce now. The price relative line is fairly strong, and the 50dma has so far been support, but unless volume on the upside picks up, this is just not ready for prime time.

I am starting a project which calculates price relative and enable me to scan for rising price relative lines. I found an extension to the open office spreadsheet that automatically gets data from Yahoo finance so I won't have to get all the data myself, which takes hours. The good news is that once the spreadsheet is set up, it will take only a few minutes to scan the market. The bad news is it is going to take a lot of time to get the spreadsheet set up. I am going to do some trial runs with a few stocks this weekend, and if it goes well, I will start setting up the spreadsheet and hopefully have something done by next weekend. 

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