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Saturday, September 28, 2013

Leader Charts

 We have another good week on the leadership list, with over a 2% overall gain and more gainer than losers. SBGI was the biggest gainer on the week. Last Friday (blue arrow). it was forming whagcould be called a handle of a cup and handle pattern, but it did not complete before the breakout, which came on a gap up on Monday. Despite the flaws this went on to make a big gain and hit a new high on Thursday. Thanks to weakness in the overall market, the price relative on this is going straight up. Volume has been increasing, and CMF is showing accumulation. Something is up here.


 RDA was the second biggest gainer, all of it coming yesterday. Unfortunately this is on a buyout offer, which makes target projection very difficult, and if i is a valid offer, this is not likely to go any higher. If it is not, it will come right back down, so as I see it, there isn't much up side to this one. Too bad, because it was showing signs of being a potential long term leader.

GMCR was the biggest decliner, breaking two support levels and the 50dma in one week, for seemingly no reason. This is pretty clearly under distribution right now, which may mean the market may be anticipating bad news here. Bargain hunters might be interested in it, but I would give it at least another week before looking at it.

LL was the second biggest decliner, this one coming in one day and on news (headquarters were raided by the Feds, who are looking for illegal wood imports). This was the second big drop on bad news in the last 6 months; the first truned into a buying opportunity, and so far this is looking like one as well. I don;t think I'm thrilled about messing with a stock that is under legal pressure, but so far this one has managed to survive it.




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