Momentum Wrap – Expected Pullback
- Posted by Ivanhoff
- on February 4th, 2013
Over the weekend, we highlighted the relative weakness in momentum stocks, which typically lead on the way up and on the way down. $SPY followed on Monday, dropping 1.12% on heavy volume. There were very few breakouts and most of them failed. The market needs its time to consolidate recent gains. The overall uptrend is still intact and the dip will likely be shallow and welcomed as a buying opportunity.
10 new all-time highs among stocks that gained 1% or more: MWIV CACC TAX SBS NATH COR MN GEL LOCK SPB
25 stocks reached new 52-week highs while appreciating 1%+. Some of the notable movers include:
- $HRB is apparently everyone’s new favorite tax stock. Ever since it broke out in December, it has not looked back, leaving $INTU in the dust. A little extended at this point.
- $AMWD (home furnishing), which is an indirect U.S. housing recovery play, cleared new 3yr highs on heavy volume
- Other housing-related stocks also fared well: $AKR (property management), $RDN (property insurance), $COR (REIT), $CPSS (credit svs)
- Another staffing stock broke out to new multi-year high: $CTGX
StockTwits 50 Notables
- As risk appetite fades, momentum stocks continue to get hit. Nine St50 members declined 2% or more: $NXPI $PHM $CRAY $N $CDNS …
- Some are holding better than others. This is the time to pay attention to relative strength: $AKR cleared new multi-year highs. $SWI is holding impressively well above its rising 50dma. $QIHU is starting to find its footing and consolidate neat the $30 mark.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus