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Saturday, May 4, 2013

Leader Charts

We had 16 gainers, 3 decliners, and one stock flat for the week on the leadership list, but with a very large number of them reporting, there were some pretty monstrous gains. HCI was the biggest gainer, on which, I believe, was it's first appearance on the list. It did report yesterday, although it was not on my schedule, so I missed this, but there was never really and entry point unless you got it right on the breakout. This is a relatively new issue, having IPO'd in 2008, and was ignored until early 2012 when it began a monstrous rally. It's earnings numbers for the last 3 years are pretty impressive, and this rally will likely continue as long as the EPS numbers continue to grow. This might be a good candidate for a small position long term hold.

STX was he second biggest gainer. This also reported earnings and broke out of a fairly long base. Taken out of context, it is a pretty decent base, and the breakout came on decent volume, but putting it in context (which is what the price relative line does), it was building a base while the rest of he market was rallying. That is not necessarily the kiss of death, but if this struggled while the rest of the market rallied, I would hate to see what it does in weak market.

BYI was the biggest decliner. This spent he week pulling back after a big gap up the prior week, and again, out of context is doesn't look that bad: it is right near the support at the top of the gap and ordinarily might be a screaming buy. Witht he weak price relative line, I think it is a good possibility i will not hold this support here, and may end up going all the way down to fill in the gap, or at least come back to the 50dma. In a weak market that would be good, in a strong market it is suspect.

CSTE was the second biggest decliner. This is a very recent IPO, and this chart contains nearly all of it's trading history. I is in the process of building it's first base, and appears to be ready to build the right side. It;s probably at least a month away from a breakout attempt, so there isn't much to do here until then. This has very good EPS numbers and a small float, so it does have the potential to be a big mover. I do not have an earnings date for it.

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