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Charts courtesy of stockcharts.com

Saturday, February 23, 2013

Leader Charts

It was a tough week in the market, and as usually happens, and even worse week on the leadership list, with 4 stocks gaining, 2 breaking even, and 13 declining, and the level of declines was much bigger than the gains. ROC was the biggest gainer on the week, and while out of context it is not impressive, looking a the price relative line and realizing the market got pretty well cheesed this week makes this look quite good.  It might be at a good buy point now, although with the market in a correction I would keep it to a small position. This is one we should keep a close eye on in the event of a market reversal.


SYMC was tthe second biggest gainer, and again, out of context, is a very unimpressive chart, but the price relative line is rising. This has a very stiff resistance level a about 23, just above where it is now, and if it can break out here, it might be buyable. I know O'Neil advises against buying in corrections, bu even in the worst corrections you can get very sharp rallies. Just be prepared to be wrong.

It had to happen: CIMT, the biggest gainer for the last 2 weeks, was the biggest decliner this week. This is now a falling knife, but if it gets a bounce off the 50dma, that is going to be a very attractive buy point. It might not get that far, and it is hard to say if this recent move up was part of a longer term trend or just a flash in the pan (right now I am leaning toward the former), bu this is probably going to be making wild swings up and down for the next couple of weeks.

CPSS was the second biggest decliner, the decline being larger than it looks on a log chart. This had just broken out last Friday (I remembered this was a 4 day week, so the blue arrows are in the right place). Technically this is a breakout failure, but again, in context, it still looks pretty good. It will look even better if it goes sideways o meet the ascending 50dma, which has a recent history of support. Keep an eye on this one.

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