More Strength
The market Wednesday
served up more breakouts among the high RS crowd as well as progress and
consolidation among the first out of the gate.
Buca
(
BUCA |
Quote |
Chart |
News |
PowerRating) shot out
of a 10-week base after reporting restaurant sales increased 47% in the first
quarter, generating an 86% gain in net income. The stock closed at the very
top of its range on nearly six times its usual trade.
Homebuilding stocks surged on a
Commerce Department report showing new U.S. home sales climbed at a record clip
in March. Pulte
(
PHM |
Quote |
Chart |
News |
PowerRating) followed through on Tuesday’s breakout.
Â
Fluor
(
FLR |
Quote |
Chart |
News |
PowerRating) and Loews
(
LTR |
Quote |
Chart |
News |
PowerRating)
added to prior-session gains.
Interesting basers: Career Education
Corporation
(
CECO |
Quote |
Chart |
News |
PowerRating), Skechers
(
SKX |
Quote |
Chart |
News |
PowerRating), Omnicare
(
OCR |
Quote |
Chart |
News |
PowerRating) and Vital Signs
(
VITL |
Quote |
Chart |
News |
PowerRating). Vital Signs is looking pretty Vish, though, and really needs to put
in a week or more of consolidation. Highly V-shaped correction-recovery patterns
are a provocation to the weak holders to exit and to the shorts to short.Â
Remember to limit your risk by using
stops and limiting your allocation in individual stocks. For an introduction to combining price stops
with position sizing, see my lesson,
Risky Business.