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Saturday, October 8, 2011

Leader Charts

It was a pretty good week on the leadership list, with about an equivalent number of gainers and decliners, but the gains far outweighed the declines. Unfortunately none of the charts are in very good shape, so leadership is still lacking. PSMT was the biggest gainer, coming after a very sharp pullback which undercut the 50 dma. In hindsight, that was a buy signal, but there was no way you could have known we would have had the sharo reversal we got on tuesday. this screamed higher ever since then, and will probably run into resistance as it gets to the previous high. Despite the big gain, this chart does not strike me as especially bullish. 
 QCOR was the second biggest gainer, and it also looks like it is going to run into resistance. I believe this is a valid double bottom base, which means it technically broke out on Thursday, but I think the big resistance is up at the previous high. The price relative line also pulled in after retesting the previous high, so I suspect this has some work to do before moving hgher.

HITK was the biggest decliner, after having been one of the last holdouts to drop. It took a terrible dive on Monday, then bounced back, but the bounce was quite weak. If you are the type who watches every tick during the trading day (I'm not) you might have been able to catch this at the 50dma, then bail out when it starts running out of gas (as  it appears to be doing now). Otherwise, there is nothing to do here.

AAPL was the second biggest decliner, no doubt influenced by the Steve Jobs news. This had already broken the 50dma last Friday (the blue arrows represent last Friday's candle). Here is another one where a nimble trader could have caught it at the 200dma, but I would have taken a small profit quickly, as this is looking pretty shaky right now.

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