It was a good week in the market, and for once the leadership list confirmed it, with 8 gainers and only 2 decliners.
NVLS was the biggest gainer, no surprise since this started running away ass soon as the week started. Last Friday (the blue candles show last Friday's candle) it had just pulled back slightly, which careful analysis would have shown was back to a pivot point and a perfect buy point. I have been thinking all week that this is horribly extended, but I have another pivot point projected right above where it is now, and if it breaks out there, that may be another buy point. That may be a case of "if you torture the pivot points enough, they will go anywhere", but the beauty of paper trading is, if I'm wrong, I don't lose real money.
Speaking of paper trading, I bought
ULTA, this week's second biggest gainer, when it gapped up a couple of weeks ago, one that I probably would not have done for real. A careful analysis of of the pivot points (and again, possibly a little torture), shows that the gap up was a correct buy point, and the is now right on another buy point, so I will be looking to add to this. The only real problem with this chart is the volume is awfully low.
BWLD was the biggest decliner. This is forming a handle to a long pattern, but the handle is dropping a little too far, and the price relative line is dropping with it, so this may end up being another base. This looks like it is going to test the 200dma, and that might be a decent trade there, but with the weakness it is showing now, the resik/reward ratio seems awfully high to me.
SAM is the second biggest decliner, and is also in a pullback which, last week, looked like it was going to bounce off the 50dma. This week it dropped below, so there really isn't much to do here. This one also has a declining price relative, but one thing it has going for it is a strongly positive CMF, indicating that there really hasn't been any huge selling during this pullback. If I really wanted to get into this I would wait for either a bounce off the bottom pivot or a move above the middle one.
