Here’s Why You Should Look For Relative Strength
Following the
disappointing job numbers, the market gapped down. It appeared
selling was the only solution to keep your sanity.
10:15:36
Alert
In spite of the weak market, Doral Financial
(DRL) is still holding above the 8-day EMA and forming a bull flag. DRL is
trading at 38.49, up 0.07.
When I posted it, the market was down nearly 110 points. But DRL was refusing to
go down. Look at volume when the stock was pulling back from the July 30 high.
It was decreasing. Nobody was selling seriously. As you can see below, DRL broke
out of a flag accompanied by strong volume. It is now trading at 39.47, up 1.05.
If a stock is refusing to go down in spite of the gloomy market, mark it and
watch it closely.