Leader Charts

You could say it was a bad week on the leadership list, with only two gainers, but there really wasn't much movement, with none gaining or declining more than 5%. HITK was the biggest gainer. This has been one I have been watching for the phenomena I have seen numerous times in the market: a stock in an up trend that takes an earnings hit sells off for about 10 days, then resumes the up trend. This turned in 8 days, but really did not move up much after that, but that is probably due to the fact that the market has been weak.  If we get a rally early next month, this one will very likely lead it, I have mentioned several times that this one is on the list of Chinese reverse mergers, several of which have been accused (and in some cases it was true) of fraud. I have heard nothing about this one, but one accusation will likely send it crashing.

CMG was the second biggest gainer. A long term holder here would have made very little in the last 6 months, but a nimble trader would have made a bundle trading the various moves up and down.  Price relative is essentially flat for the last few months, so while it is not being sold off in droves, it isn't really leading anymore, either. It has been in a monster up trend for 3 years now, and is in the late stages of a bull move, so this may be very close to topping out.

PRGO was the biggest decliner. It appears to be setting itself up in a nice pullback, but the price relative line is going the wrong way. That volume spike a couple of weeks ago makes the volume pattern hard to read, but it is also what probably put this on the leadership list to begin with, and this will probably drop off as soon as we get 20 days away from it.

GPOR was the second biggest decliner. This has the same problem: a bullish looking pattern (a cup and badly flawed handle), but the price relative line is going the wrong way. This looks like it is going to have a lot of trouble with the 50dma and i wouldn't even entertain a position here unless it could get back above it.