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Saturday, October 26, 2013

Leader Charts

 For once the leadership list took a break, down 1% overall and with more losers than gainers, and that was in the face of a good week in the overall market. NUS was the biggest gainer, with a gap up on earnings. This one will be a good test of my "pivot point projection" theory, a semi serious attempt to calculate targets based on prior pivot points. This had a target of  about 110, gapped over it, then came right back down to it before starting to move higher. 110 should now be support, and this is well withing buying range. It should be in the process of forming a new trading range. The price relative line is very strong and getting stronger, and right now this is screaming "buy".

HCI was the second biggest gainer. This one also gapped over a resistance point and came back to test it, but so far has not begun moving out from there. Price relative has yet to get to a new high, and this one may not be quite as strong as it looks, but target wise, it has a lot of room to move up. Volume is picking up a bit and this may be attracting some attention from the big money boys, so I will be watching it.

SYNA was the biggest decliner, and this one was on earnings. This had a big rune prior to the report, but did start dropping about a week before. Technically, this is still above the 50dma and may get a bounce, but i would not count on that. I would come back in about 10 trading days and take a look at this: it actually reported pretty good numbers. Stocks in long term up trends which get hit on earnings will often drop for 10 days, then reverse and resume their up trends. However, this one is not in a long term up trend, so I have no way of knowing what it will do.

INVN was the second biggest decliner. This is in a very strong 6 month up trend, and is making what looks like a perfect pullback to the 50dma, an ideal entry point. The timing is a bit of a concern, with the pullback happening in the midst of a strong market (as evidenced by the price relative line), but it is probably worth  the risk: it may be the last really good buy opportunity his give for a while.

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