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Charts courtesy of stockcharts.com

Saturday, June 8, 2013

Leader Charts


After a rough start, the leadership list has another big week, with 13 gainer, 5 decliners, and 2 breaking even. SODA was the biggest gainer, after staging a breakout early in the week and continuing higher on a buyout rumor (which has been vigorously denied, so it's probably true). This hit the target I had projected for it on the day of the rumor, and pulled back pretty sharply, so it is in no man's land as far as a short term trade goes, however, if I had bought like I was supposed to, on the breakout, I would be hanging on to it.  Price relative has really gained a lot of strength recently, but CMF still looks weak, however that should improve when volume improves.


GMCR was the second biggest gainer. This is in the process of establishing a trading range, which is will probably stay in until it's next earnings, when it squeezes the shorts again and gaps up huge. Until then, his is good for sshort term trades when it gets near support or resistance.

CSTE was the biggest decliner. This has recently been the strongest stock on the leadership list, and iwas due for a drop. It got on starting last Friday (the blue arrows represent last Friday's candles), and looked like it was going to pull back to the 50dma. The rapid decline told me that the 50dma might not hold it: I was wrong, and it gave us a perfect entry point which I missed.


LYB was the second biggest decliner. This is now dropping in the face of a pretty strong bounce in the market, and long term price relative is pretty weak, so this one is just not ready for prime time, and doesn't look like it will be anytime soon.

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