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(Sorry, this post is not about GMCR)
Despite high momentum names that are susceptible to late-stage breakdowns lagging today, such as CMG DECK LULU, there are plenty of individual issues and areas of the market that have been hanging tough in the face of this morning’s gap down. In recent weeks, and essentially since the October 4th broad market low, the bears have had a difficult time of extending losses beyond a morning, or perhaps a day or two at most. The bulls, on the other hand, have been showing more and more resilience in buying these assorted dips. Unfortunately for them, though, it has amounted to taking mere baby steps as we are overall still muddling along and a sustained uptrend has yet to materialize.
With the aforementioned “leaders” displaying chinks in the amor, energy stocks appear to be leading the charge higher. My FIRE and SNDK continue to act very well. In addition, the oil service plays are extremely strong today in both absolute and relative terms. From a more intermediate-term perspective, you can see the OIH is breaking out from consolidation and has potential to test its 200-day moving average above. NOV looks to be one of the better prospects in that sector. I also detailed a certain other area of the market that is exceptionally strong today earlier for members inside 12631.
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chinks in the amor— I hate it when that happens.