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Saturday, September 10, 2011

Leader Charts

The leadership list just about broke even this week, with about an equal number of gainers and decliners, and nothing gaining or losing over 10%, although that could be partially due to a short week. PSMT was the biggest gainer. Last Friday (the blue arrows point to last Friday's candle) it took a small dip, then this week, came back up to where it was then went nowhere after that, but that was good enough for first place. This is technically consolidating after a previous breakout, or, as O'Neil would say, forming a high handle,  and the price relative line is moving up, so this looks like it is waiting for another rally in the market before doing anything. 

 LULU was the second biggest gainer, even though it got hot on earnings yesterday. Late buyers did come into this after it gapped down, but this has a lot of resistance to get through here. The price relative line has been staying pretty high during this pattern, and if that continue this is another one theat could take off if the market rallies.

AG was the biggest decliner, and it wasn't much of a decline. This is a long double bottom base with a handle, but the handle is poorly formed. However, the price relative line has been trending up, and broke out last week. This is near both the 50dma and the previous breakout point (in a double bottom the breakout point is the top of the middle peak), and volume is declining, nearly an ideal situation for a handle.

ZAGG was the second biggest decliner, and is also in a consolidation. Volume and volatility are both declining (which may knock it off the list), which is what you want to see during a consolidation. Price relative is not rising, but it is holding steady, so i would call that neutral. CMF went sharply negative, but that was due to the high volume black candle day on a breakout attempt last month. This could be setting up for another breakout, but there is no way of knowing when.

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