Leader Charts

While the leadership overall was down only slightly, it really wasn’t much of a week, since most of the “leaders” are stocks that ordinarily would not be leaders: the usual suspects have mostly fallen off the list. LPH was the biggest gainer, and also the lowest price stock. It never occurred to me to have a price standard on the leader list (the IBD 50 does), and it is rarely an issue. This one hit the list due to a recent surge in both price and volume, and now looks like it is hitting resistance.  This one is highly speculative, and is probably good only for very short term trades, if you are really inclined to trade a stock like this. Otherwise, I won’t be going near it.

BYI was the second biggest gainer. all of it coming yesterday. This has the fact that it os one of few that have not dropped on earnings going for it, but the breakout attempt is a little weak, and the price relative line is also somewhat weak. If we were in a stronger market I might be inclined to go after this one, but in this market this is going to really struggle for a while.

BRLI was the biggest decliner. It has been in a steady drop for a couple of weeks now, and volume is picking up. Yesterday it broke the 50dma, and is now starting to look like a falling knife. I will be watching the next up move in this, if it is weak this could be setting up a good shorting opportunity.

TDG was the second biggest decliner, although it does not llok like much here. This one gapped down earlier this week, but bounced off the 50dma and came back, if a little weakly. This one looks like another short candidate in the making, but the price relative line, which is very strong, might make this a bit difficult to short.

2012-10-27 11:45:38

Source: http://samuraitrader.blogspot.com/2012/10/leader-charts_27.html