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August 3, 2012 / redman59

Relative Strength Leaders

An interesting day today. Lately I find myself not able to monitor the markets as much as I wish due to intraday conflicts but all I can say is that I expect volatility to come.  I believe it is not so much about being bullish or bearish here but ask yourself “can I withstand the volatility or am I able to take profits quickly”.  There is a lot going on from cancelled trades; ie. the Knight Capital debacle highlighted many times by the iBankCoin Financial News @IBC_FN or the last 3 minutes of trading highlighted by @zerohedge on 8/1).  I personally believe that volatility is about to ramp up.

Aside from this news we have seen 4 down days in a row in an up trending market characterized by higher highs and higher lows and staying within a rising channel.  Also it it important to not that the SPX has lost the 10 EMA and it is trending down.  I like to use this EMA to characterize momentum.  But while the SPX ha slost the 10 EMA, it has tested the 20 EMA and is still above a rising 20, 50, 100, 200 EMA…so this may be a buy the dip scenario.  The only thing that I would emphasize is that if you are buying the dip, keep a tight stop as this market is becoming news driven yet again.

With that I ran a scan of stocks making yearly Relative Strength highs as measured by the last 252 days to the Russell 3000.  I have broken them down into all stocks and only optionable stocks.  Also all of these stocks trade  with an average volume above 300,000 on a 50 SMA volume average.  The charts have been uploaded to FINVIZ so that they can be filtered to your personal preference.  This list can be used in two ways.  If you believe this is a buy the dip scenario, then these are stocks that have held throughout these 4 down days.  Or, if you believe we have more down side, these are stocks that are holding but could accelerate to the downside because they haven’t been hit yet.  Either way, fit these stocks into your trading style keeping in mind they have displayed superior Relative Strength to the Russell 3000.

Like the ways of the @RaginCajun, all stocks are sorted by volume

All  stocks

Only optionable stocks

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