Churning Near Resistance
A little bit of churning up near
resistance… but no big deal just yet. This is quite normal at this
juncture. This also fits in quite well with the fact that a couple of short-term sentiment numbers have become too
bullish. Both the VIX and VXN have reached short-term danger levels, with the VIX nearing a 25 reading and the VXN near 63.
But who cares? More stocks busting out today.
In the homebuilders:
(
BZH |
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PowerRating) and
(
RYL |
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PowerRating) move out of a cup and handle.
(
KREM |
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PowerRating) pops out above resistance.
Volume was heavy. Love the donuts and lots of short sellers in this one. Do I hear
squeeze? A little extended near-term.Â
(
DVA |
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PowerRating)‘s chart speaks for itself.
Moves out on over four times average volume.
(
SKX |
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PowerRating) looks to be following on its gap.
(
TOY |
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PowerRating) — yes, TOY breaks out of a long tight base on almost triple volume.
(
ICOS |
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PowerRating) sloppily breaks above
resistance. (Is “sloppily” a word?)
The Short
Watch
(
CA |
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PowerRating) looks vulnerable. Possible short on any rally. Questionable accounting.
I wouldn’t let them handle my checkbook.
Another wonderful story is
(
DG |
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PowerRating). Potential short off of last
gap. More accounting irregularities. A nice way of saying “fraud.”
I leave now for my radio
show. Still very depressed about my beloved Knicks getting beat by Toronto.
Where are Walt Frazier and Willis Reed when you need them?
Lastly, I urge every one of you to read the May 14 issue of Fortune. The cover
is about Mary Meeker and her less-than-stellar performance. Her Internet picks
— down anywhere between 85% and 95% — have not changed her ratings. She blamed
investors for their losses and put no responsibility on herself. I agree with the first part somewhat but the second part….well, I will let you decide for
yourself. My opinion: Disgusting at best!