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Saturday, May 18, 2013

Leader Charts

It's getting to be a broken record: another  big week on the leadership list, with lots of gainers and few decliners. CSTE was the biggest gainer, building the right side of a base. This is very likely to form a handle here, which should last at least a week, before making a breakout attempt. Unile then, there really isn;t much to do with this one. Price relative is not terrible impressive, but it isn't weak, either. One thing to note, that is a little hard to see on this chart, is the increase in volume on the way up. Another is the dropping ATR. Both indicate this may well be under accumulation by the big boys.

SODA was the second biggest gainer. This was pretty range bound and bouncing around the 50dma until Monday, when it broke out. The sudden increase in volume in the few days before that was a flag that something was up: with the market the way it has been, that probability was a breakout, and that is what happened.  This one looks a little volatile, but might form a bullish flag here, if it doesn't keep going straight up.

PRLB was the biggest decliner, but that comes after a breakout last Friday (blue arrow). It gave back the breakout gaine this week, but held support and now looks like it may be ready to start moving up again. Where it is right now is about the best buy point you will ever get.

YHOO was the second biggest decliner. This is also a recent breakout that is pulling back and is probably going to offer a secondary buy point, something it has been doing with consistency for the past 6 months. ATR has aslo been rising steadily for 6 months, so this might start becoming a lot less predictable in the near future.

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