Leader Charts

If the leaders are any indication, then this week's follow through day was a valid one, as overall the leadership list was up almost 6%, with every stock but one making gains on the week.  RGR was the biggest gainer at about 10%. Last Friday (the blue arrow represents last Friday's candle), it was at the end of a very short consolidation, and has gone pretty steadily up since then. This is a good example of a stock that holds up during a correction, then takes off when the correction ends. IBD has a rule of thumb when selling a stock: if price is double the 200dma, it's time to sell. This has quite a ways to go to get there, and the pivot point projection also gives this a big upside target of 37.

 

CF was th second biggest gainer, but i have looked at that chart several times and have not looked at MA, which came in #3. This had a very nice gain this week after a bounce off the 50dma, but really isn't outperforming the market right now as the price relative line has been moving sideways for several weeks. Watch for that to start moving up, otherwise I would not bother with this one.  

AAPL came in at #5, and would probably would have been #1 had it not been for the Steve Jobs news. Being the contrarian that I am, and not wishing to buy into the Apple hype, I have not been paying very close attention to this chart. Big mistake. Look at how the price relative line kept rising after price peaked out in July. When you see a stock going into a base wth a rising price relative line, that is about the mst bullish scenario you can have. This hit a 20 day high in price relative yesterday, so this will most probably be moving up.

DGSE was the only stock to register a decline, and that was just barely. This is riding along the 50dma, and volume has dried up to the point it where it will probably not make the list due to volume. Price relative is going sideways, so it is neither outperforming or under performing the market. This is highly unlikely to go anywhere unless it gets another volume boost.