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Saturday, November 2, 2013

Leader Charts

We had an up week in the market, but on the leadership list, you would swear we were in  a bear market.  Overall the leaders were down over 2% and there were only 3 gainers. EAT was the biggest gainer. This is in the midst of a big move after a drop and reversal on earnings last week. This looks like i is a valid double bottom base, and last Friday (blue arrow) it was just below the breakout point. It did break out on Monday, and is now near the top of it's projected range. This is a classic "wide and loose: trading pattern that O'Neil avoids like the plague, but if you can catch it right, you can catch big moves in both directions.

SAVE was the second highest gainer, coming off the botom of what looks like a flat base after a prior breakout. This is currently one of the strongest stocks in the market, and just now came on my radar. I have a pretty lofty target for this one, but the way this has been moving lately, it just might hi it, so I will be keeping an eye on this
QCOR was the biggest decliner. This had been on of the big leaders of 2012 and early 2013 but has had a tough time making headway in the last few months, and along with the rest of the biotechs, is starting to show some cracks. Price relative is no longer in an up trend, and I don;t think the big money is accumulating this: if anything, they are probably slowly bailing out.

CRME was the second biggest decliner. This is a low priced stock that has made a big move. This could be a high, tight fag pattern, but i don;t know if the flag is "tight" enough. It still looks pretty bullish to me, if speculative, but it does not get a lot ov volume and is not likely a target of the big money boys yet. If I was inclined to trade this, I would stick to a small position to minimize risk, because the potential gain is pretty high.

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