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Saturday, November 9, 2013

Leader Charts

Overall the week on the leadership list was better than on the overall market, and thanks to the bounce we got yesterday, there were more gainers than decliners. UBNT was the biggest gainer, thanks to a gap up on earning yesterday. It id form the dreaded black candle, and worse yet, it never got to a new high, so despite being the biggest gainer, I would not be going near this one.

WLK was the second biggest gainer, also coming on earnings. This reported on the wrong day, trying to break out in the face of serious downward pressure in the market. Once that pressure stopped, this bounced back up and broke out. This is probably not a very good time o be buying breakouts, but if I had too, this one would be as good as any.

BIDU was the biggest decliner. After a failed breakout from a couple of weeks ago, this has pulled back to the 50dma and looks like it is going to try to get a bounce. Volume on the way down was not that high, and the two highest volume days had the long tails at the bottom of the candlestick, a sign of accumulation on the dip. Normally when the market is in a correction I start looking for leading stocks making bounces off the 50dma; we are no getting a few, and when we get a bunch of them, that usually means the correction has run it's course.

YNDX was the second biggest decliner. This has now broken the 50dma and is retesting it from below, which makes it a possible short. Chinese internet companies may be among the hardest hit if we go into a substantial correction, but if we don;t, they can also be the biggest bounces, so if you were inclined to take a position either way in this one, I would be ready to bail out quickly.

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