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Charts courtesy of stockcharts.com

Saturday, May 19, 2012

Leader Charts

It was a very tough week on the leadership liest, and it will be a challenge finding stocks for the week this week. Not one of the 11 stocks on the list had a gain for the week. DSW was the stock dropping the least, which gives it the title of biggest "gainer". This broke the 50dma and is still under it, but does seem to have a support level just below it.  This had a high volume down day on Thursday, but also got pretty good volume on yesterday's bounce. The price relative is rising, and indication that the big holders here are reluctant to sell. This should go on a list of stocks top keep an eye on when the market turns.
 SWI had the second smallest decline. Even under normal bull market condition this would be a bullich chart, but under bearish conditions it is even more so, This has held up quite well, but I don't know how much longer it will continue to if we really go into a bear market, and it can collapse pretty quickly. I wouldn't go anywhere near it until the market goes back to a confirmed rally.

GRA was the biggest decliner, and is an example if a stock that collapsed basically for no reason other than a weak market. Other than a break of the 50dma, there was no warning of the drop to come, which came very quickly.Not long ago it had a very high price relative score, but, strangely enough, after the January rally did not seem to be undergoing a lot of accumulation. Whoever was holding it decided to bail out this week, and this may not be able to stay much higher than the 200dma. That is a lot of carnage for a stock where nothing other than the market outlook has changed,

POZN was the second biggest decliner. This one bounced off the 50dma on a previous collapse, filled the gap, and is now coming back down to the 50dma. It might hold here, but I sure would not count on it. I have been expecting it to come back down to the March breakout point, and it might be in the process of doing that now. Long term I think this might be a good stock, but short term I don;t have much confidence in it.

It is going to be quite a chore to find leading stocks this week. I will have the new leadership scan later today.
   

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