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As I have been discussing in my recent video market recaps, if the market is going to emerge from this choppy period and commence a fresh leg higher, it is bound to be much more of a stock picker’s market. As the bull matures, capital tends to rotate out of the previously obvious winners towards sectors that may have lagged heretofore. The coal sector is one area that I have been watching closely, as money may come out of some of the frothier oil services names.
Another group of stocks that are rather blatantly under accumulation (heavy buying by institutions) are communications equipment firms. Even during last week’s broad market volatility, especially on Friday, this sector displayed unbelievable relative strength. Below, I am going to present the leaders of the group first, followed by other firms setting up behind them.
See my notes on the charts.
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The pop might have been related to rumors that ALU might get bought out.
Maybe, but they were already set up to run and being accumulated before that. These charts are telling me it was a one-day wonder.
I think Cramer has been talking up the group lately, but nice list none the less.
Some great looking setups Chess. Thanks again!
cramer pumped OCLR, on a technical standpoint…
Thanks.
Crisco is noticeably absent:)
Been loving the communications equipment group and thanks for posting the charts and your thoughts. Have to say my favorite right now is OPLK, not a lot of attention and has popped up on intraday volume screen several times. This stock also has strong fundamental support as well. EXFO is a new one but definitely showing some nice strength, great job Chess
CIEN and ALU are bieng bought up too. INXN is a recent IPO I have been eyeballing too.. Looks very promising..
goddam. when agilent is hot, times be scary.
LoL