Wednesday, February 17, 2010

Stocks With Excellent Charts

As we await the breakout over S&P 1100 (if not today, then surely in premarket tomorrow or Friday, when all the important work is done) some chart review.

A lot of stocks have made a quite substantial turn for the better with yesterday's low volume surge.  I am seeing countless charts that look like this below - what is so interesting is how little "resistance" has meant when the computer go hardcore on the "inverse dollar" trade.  It is as if the pretty red line means nothing. [click to enlarge any chart]

I can find about 200 charts that look identical to the one above - and not just the commodities or "early cyclical" stocks - every sector there are many.  "Student body left" trading is alive and well.  If the market "melts up" I'd expect all of them to run en masse. 

I can find a smaller group of stocks similar to our TriQuint Semiconductor (TQNT) which have already rallied back to near mid January highs - these type of names are either about to make a "double top" (hence one would want to sell) or ready to make a new leg up, at which point they would be stocks to buy. 

... because if they make new highs, they would be poised to act like the stocks below, which I consider the strongest charts.  Many of these barely appear to have been hit by the correction ... here are some of the best of the best, from quite disparate sectors.  I have not listed most of them below but we have some of the best charts in consumer non discretionary - especially basic food stocks like Sara Lee (SLE) or Tyson Foods (TSN) of all things!  There are quite a few others - what that action is "telling us" is beyond me, other than Americans are hungry.

Star Stocks Outside of Food Group

Rockwell Automation (ROK) - defense

Brookfield Properties (BPO) - REITS, office

Dolby Labs (DLB) - home entertainment

Autozone (AZO) - car repair

Limited Brands (LTD) - retail

Southwest Air (LUV) - airline

Family Dollar (FDO) - retail

Perrigo (PRGO) - pharma / generic

Ashland (ASH) - chemicals

Chipotle Mexican Grill (CMG) - restaurant

Lennar (LEN) - homebuilder

Long TriQuint Semi in fund; no personal position

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