Market Talk with Piranha is currently moving to its new home at chrisperruna.com. The new site is up and running but many of the posts need editing as the images and stock charts did not transfer successfully (thanks blogger). I will post all new entries to both blogs – Thank you for your patience while I make this change!

Friday, October 20, 2006

Comeback Kids?

Due to last night’s loss by the Mets, I am going to call today’s screen the comeback kids. I am disappointed today as a baseball fan but I will get over it and look forward to next season with a young group of comeback kids (I also have my Giants playing the Cowboys this Monday night).

Are the stocks below a bunch of comeback kids?

Many of them are only a few years old and are gathering some support near their 200-d m.a. as the market looks to be forming its first pull-back or high handle. The market is overbought and extended so I am cautious with this type of a screen but it is important to look for stocks that can gain support above their 200-d moving average.

Many of these stocks are recovering or gaining price strength above their 200-d moving averages but their volume is not cooperating on the weekly chart which does raise a red flag. The stocks screened are ones that made positive gains yesterday, have respectable relative strength ratings and earnings ratings greater than 70% of their peers. Keep in mind that I may have left some solid candidates off of the list because the screen was only looking for stocks making gains during the day Thursday. All prices quoted are from the end of day Thursday.

Comeback Kids?
  • STLD – 58.69, nice support along the 200-d m.a. with increases in volume. The next short term buy is a move above $60
  • DRQ – 37.84, back above the 200-d m.a. as the stock is gaining some support with increased volume on the daily chart
  • FTI – 60.25, this chart is very similar to the first two stocks listed today as the 200-d m.a. recovery is underway but weekly volume is not above average
  • BRG – 65.84, after five months of consolidation back to the 200-d m.a., the stock is moving higher on increased volume. Could be a $60-$100 setup
  • GPI – 50.16, the stock corrected about 30% from its high and is now trending back above its long term moving average. Short term buy is a move above $52
  • BUCY – 49.40, the recent and former MSW Index stock is back above the 200-d m.a. but volume is lower than the distribution weeks.
  • ANDE – 38.30, the stock has corrected by 50% since its high above $62 and is now gaining support along the 200-d m.a. with a possible deep cup pattern forming
  • EXPD – 48.11, another one of those CANSLIM type stocks that corrected to the 200-d m.a. after a nice run and is now trending higher. The trend buy is along the moving averages
  • VMC – 84.20, building a five month cup shaped pattern with recent support at and above the 200-d m.a. Volume has been light so be skeptical.
  • AEM – 33.25, riding the 200-d m.a. with a short term entry on a move above $34. Once again, I would like to see volume increases to confirm the move
  • NTG – 32.72, the stock fell below the 200-d m.a. for the first time in years but is fighting to get back above (volume has been light)
  • OXPS – 30.19, the former MSW Index stock is back above both moving averages and is gaining volume strength on the daily chart but not the weekly chart.
    DB – 123.58, a cup with handle base above the 200-d m.a. with a pivot point of $125.42
  • MDR – 44.36, a long time superstar that has been riding above the 200-d m.a. for the past couple of years with its first challenge of support in September. The stock caught support and is looking to recover its 50-d m.a. but daily volume is low. I would wait for a new 52-week high before becoming interested.
  • DAKT – 22.42, the stock took a hard fall in August back down to the 200-d m.a. but has since caught its footing. The trend buy would be now with proper sell stops in place
  • TTI – 25.95, the stock has consolidated through out 2006 with recent support near the 200-d m.a. and is now attempting to stay above the long term average. Volume has dried up, so watch the RS line carefully
  • HSC – 82.20, a strong stock from 2005, Harsco has consolidated in 2006 and is looking to gain some strength here above the 200-d m.a.
  • ADM – 37.90, a great stock from late 2005 until mid-2006 with a recent correction back to the 200-d m.a. It seems to be getting some support at the long term support line but must recover back above the 50-d m.a.
  • TS – 37.71, one of the top performing stocks on the MSW Index in 2005 and early 2006 but was recently removed due to lack of strength and a declining RS line. It has since recovered the 200-d m.a. and will stay on my radar.


Piranha

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