4/20/2007

Weak action continues

The market recovered from the morning Shanghai market inspired drop, but there were no major gains. Dip buyers have been active in this market for sometime and yesterday the China inspired weakness was readily bought.

The action is currently dominated by a narrow group of mega-cap names. The bullish breakout levels has dropped below 100 for few days and stayed in that territory . Month 50% plus had a sharp drop to 4. Nasdaq shows weak action. Most Index corrections in recent years have been lead by Nasdaq diverging from other index.

Overall the market monitor has done a good job of identifying the risk area and I have large cash position. If this proves to be just a correction and once the 50% plus in month level starts accelerating, it will signal aggressiveness.

Market Monitor


Total 4% plus bullish breakouts = 79

Total 4% plus bearish breakouts = 77

65 day bullish/bearish ratio = 865/239

Stocks up 50% or more in a month = 4

Stocks up 25% or more in a month = 65

Number of stocks with 100% plus move = 413

Number of stocks up 200% or more = 87

4% plus signals for 100plus universe = 9

4% plus signals for 200plus universe = 4



Selected Stocks from 100% plus universe with 4% breakout

FARO,Faro Technologies Inc (Google  Yahoo  Earnings  Chart
VC,Visteon Corporation (Google  Yahoo  Earnings  Chart


Both the stock also have low 65 days growth.

Episodic Pivot

IFLO,I-Flow Corp (Google  Yahoo  Earnings  Chart
LRW,Labor Ready Inc (Google  Yahoo  Earnings  Chart
PYX,Playtex Products Inc (Google  Yahoo  Earnings  Chart
RS,Reliance Steel & Alum Co (Google  Yahoo  Earnings  Chart
VMI,Valmont Industries Inc (Google  Yahoo  Earnings  Chart
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