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When the broad market is trending higher, you often see example after example of a rising tide lifting all boats. Even the stock prices of poorly-run firms with seemingly no catalysts in sight laugh in the faces of rigorous bears, who can win an argument about the trade with everyone except Mr. Market. Almost by definition, life is much easier for bulls who do not put in as much work as they should in discerning the very best and highest probability trading setups.
In the current market, and for much of 2011, life is most certainly not easy for bulls. I frequently discuss the concept of relative strength in this tab, and I have been mentioning it now more than ever due to how selective the market has been with respect to declaring clear winners. Even the clear, high growth leaders in the Nasdaq since 2009 have been flashing ominous signs, forcing me to look elsewhere for a potential changing of the guard. Of course, all of this is predicated on the idea that we do not continue lower into an established bear market, in which case virtually all longs will feel the sharp claws come out.
Should the October lows hold, I am intrigued by the notable outperformance in a few specialty retailers. CRI and PLCE are geared towards children, and both are sporting impressive weekly charts, despite all of the turmoil in markets recently. Contrast these charts to the multitude of broken, sloppy charts out there, and you can see their absolute and relative strength. I also included a weekly chart of Macy’s as an example of another retailer with strong technicals.
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Great looks, thanks.
Those are FoxConn workers re-stocking the IPad shelves. Thank Chess
Still holding the rest of that AAPL short?
$BBW bro. another classic example of ‘ask your kid what the next Momo name is,they already know’
So tier-one Chess. Thanks.