11/04/2008

Airlines bounce back

  • A five day positive run on Market Monitor 4% breakouts after a long time.
  • It was a 327/168 day on Market Monitor. The frenzied bounce has slowed down. It needs to settle below 300 breakouts per day. That will signal low volatility.
  • Slowly new industry leadership is emerging.
  • The bounce from 52 week low is the primary trade working currently. Beaten down and oversold stocks are making big one day reversal moves.
  • We are expected to open strong today and the overseas markets were very good.
One way to look at emerging leadership in stocks is to look at stocks with sufficient liquidity which are up more than 25% plus in last one month. In Telechart this is easy to do with a simple scan:
C20 >= 5 AND 100 * (C - C20) / C20 >= 25 AND (AVGC20 * AVGV20) >= 2500

The scan also only looks at stocks which were above 5 a month ago because low priced stocks can make big moves, but those are not what most people are interested in.

87 stocks satisfy above scan condition:

AEPI,Aep Industries Inc (Google Yahoo Earnings Chart)
AFAM,Almost Family Inc (Google Yahoo Earnings Chart)
AHGP,Alliance Holdings GP LP (Google Yahoo Earnings Chart)
ALGT,Allegiant Travel Co (Google Yahoo Earnings Chart)
ALK,Alaska Air Group Inc (Google Yahoo Earnings Chart)
AMR,Amr Corporation (Google Yahoo Earnings Chart)
ANEN,Anaren Inc (Google Yahoo Earnings Chart)
ARLP,Alliance Resource Partners LP (Google Yahoo Earnings Chart)
ASIA,Asiainfo Holdings Inc (Google Yahoo Earnings Chart)
AXYS,Axsys Technologies (Google Yahoo Earnings Chart)
BGH,Buckeye Group Holdings LP (Google Yahoo Earnings Chart)
BOM,PowerShares DB Base Metals Double Short ETN (Google Yahoo Earnings Chart)
BPL,Buckeye Partners (L.P.) (Google Yahoo Earnings Chart)
BWP,Boardwalk Pipeline Partners LP (Google Yahoo Earnings Chart)
CAL,Continental Airlines B (Google Yahoo Earnings Chart)
CISG,Cninsure Inc (Google Yahoo Earnings Chart)
CLMT,Calumet Specialty Products Partners (Google Yahoo Earnings Chart)
CPLP,Capital Product Partners L.P. (Google Yahoo Earnings Chart)
CRI,Carter Holdings Inc (Google Yahoo Earnings Chart)
CSB,Colonial Bancgroup Inc (Google Yahoo Earnings Chart)
CTXS,Citrix Systems Inc (Google Yahoo Earnings Chart)
CXG,CNX Gas Corp (Google Yahoo Earnings Chart)
DAL,Delta Air Lines Inc (Google Yahoo Earnings Chart)
DEE,DB Commodity Double Short ETN (Google Yahoo Earnings Chart)
DIN,Dineequity Inc (Google Yahoo Earnings Chart)
DTO,PowerShares DB Crude Oil Double Short ETN (Google Yahoo Earnings Chart)
DZZ,DB Gold Double Short ETN (Google Yahoo Earnings Chart)
EBS,Emergent BioSolutions Inc (Google Yahoo Earnings Chart)
EPB,El Paso Pipeline Partners (Google Yahoo Earnings Chart)
EXLP,Exterran Partners Lp (Google Yahoo Earnings Chart)
EZCH,Ezchip Semiconductor Ltd Ordin (Google Yahoo Earnings Chart)
FED,Firstfed Financial Corp (Google Yahoo Earnings Chart)
GAJ,Gr Atl & Pac Tea (Google Yahoo Earnings Chart)
GEOI,Georesources Inc (Google Yahoo Earnings Chart)
GEOY,Geoeye Inc (Google Yahoo Earnings Chart)
GLP,Global Partners LP (Google Yahoo Earnings Chart)
GMA,Gmac Llc (Google Yahoo Earnings Chart)
GNI,Great Northern Iron Ore (Google Yahoo Earnings Chart)
HEI,Heico Corp (Google Yahoo Earnings Chart)
HPF,John Hancock Prf Income Fd Ii (Google Yahoo Earnings Chart)
HPS,John Hancock Pref Incm Fd Iii (Google Yahoo Earnings Chart)
HXL,Hexcel Corp (Google Yahoo Earnings Chart)
INFA,Informatica Corporation (Google Yahoo Earnings Chart)
IPHS,Innophos Hldngs Inc (Google Yahoo Earnings Chart)
ISYS,Integral Systems Inc (Google Yahoo Earnings Chart)
LCC,US Airways Group Inc (Google Yahoo Earnings Chart)
LHCG,LHC Group (Google Yahoo Earnings Chart)
MEDX,Medarex Inc (Google Yahoo Earnings Chart)
MGG,Magellan Midstream Holdings (Google Yahoo Earnings Chart)
MMLP,Martin Midstream Partners Lp (Google Yahoo Earnings Chart)
MMP,Magellan Midstreams Ptnrs Lp (Google Yahoo Earnings Chart)
MSZ,Morgan Stanley Fin Plc (Google Yahoo Earnings Chart)
MTP,MLP & Strategic Equity Fund Inc. (Google Yahoo Earnings Chart)
MWG,Morgan Stanley Cap Trust Iv (Google Yahoo Earnings Chart)
NL,Nl Industries Inc (Google Yahoo Earnings Chart)
NRGP,Inergy Holdings LP (Google Yahoo Earnings Chart)
NRGY,Inergy L.P. (Google Yahoo Earnings Chart)
NRT,North European Oil Rl Tr (Google Yahoo Earnings Chart)
NVEC,Nve Corp (Google Yahoo Earnings Chart)
OKS,Oneok Partners LP (Google Yahoo Earnings Chart)
PEGA,Pegasystems Inc (Google Yahoo Earnings Chart)
PETS,PetMed Express Inc (Google Yahoo Earnings Chart)
PHX,Panhandle Oil and Gas Inc (Google Yahoo Earnings Chart)
PRD,Primus Guaranty Ltd (Google Yahoo Earnings Chart)
PVR,Penn Va Resource Partners Lp (Google Yahoo Earnings Chart)
QELP,Quest Energy Partners (Google Yahoo Earnings Chart)
RJET,Republic Airways (Google Yahoo Earnings Chart)
RLRN,Renaissance Learning Inc (Google Yahoo Earnings Chart)
RRC,Range Resources Corp (Google Yahoo Earnings Chart)
RYAAY,Ryanair Hldgs Plc Adr (Google Yahoo Earnings Chart)
SCMP,Sucampo Pharmaceuticals Inc (Google Yahoo Earnings Chart)
SEP,Spectra Energy Prtn Lp (Google Yahoo Earnings Chart)
SGMO,Sangamo Biosciences Inc (Google Yahoo Earnings Chart)
SHEN,Shenandoah Telecomm (Google Yahoo Earnings Chart)
SLXP,Salix Pharmaceuticals Ltd (Google Yahoo Earnings Chart)
SXL,Sunoco Logistics Ptnrs Lp (Google Yahoo Earnings Chart)
TGP,Teekay LNG Partners LP (Google Yahoo Earnings Chart)
TOO,Teekay Offshore Partners L.P (Google Yahoo Earnings Chart)
TPP,Teppco Partners LP (Google Yahoo Earnings Chart)
UAUA,UAL Corp (Google Yahoo Earnings Chart)
ULBI,Ultralife Batteries Corp (Google Yahoo Earnings Chart)
UTEK,Ultratech Inc (Google Yahoo Earnings Chart)
VASC,Vascular Solutions Inc (Google Yahoo Earnings Chart)
VDSI,Vasco Data Security Intl (Google Yahoo Earnings Chart)
VMW,Vmware Inc (Google Yahoo Earnings Chart)
VSEC,Vse Corp (Google Yahoo Earnings Chart)
ZEP,Zep Inc (Google Yahoo Earnings Chart)

The best performing sector is Airlines. Few months back the airlines were at levels below their 2003 level. The sector was in bottom 5 sectors ranked by relative strength. The high oil price was a significant drag on the sector and sentiments were very negative about this sector. Companies in this sector are highly leveraged and so once oil prices dropped he sector has rebounded.



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