You are on page 1of 6

December 10rd, 2012 at 3:00 PM EST

First, lets briefly review last weeks analysis:

We are quite pleased with the results of stocks that had overbought conditions.

Stocktwits 50 Overview:
Currently, the ST50 is bullish, as a majority of the stocks on a DAILY timeframe are in uptrends, showing a series of higher lows and higher highs. 50 Stocks in Universe 27/50, or 54% of the Universe, is in an Uptrend (12% lower than last week) 3/50, or 6% of the Universe, is in a Downtrend (2% higher than last week)

When we zoom in to just today, momentum stocks are doing well (not exceptionally strong but not weak at all either). 18/50, or 36%, are experiencing a trend day higher 10/50, or 20%, are experiencing a trend day lower

Looking below, we have a daily chart of the ST50 index. The SC Trend color for the composite index is GRAY, indicating an overall neutral trend in the ST50 Index, or no definable series of higher hows and lows. . The 50-day moving average of the index is sloping smoothly up, showing at least for now continued demand for top momentum stocks. Also, in the top pane you can compare this to the SPY on the same timeframe. The correlation between the ST50 and the SPY is sloping down, showing how well the ST50 stood up during the recent market correction.

When we look at the same data under a weekly timeframe, we can see that the data is more bullish than on the daily timeframe, as currently 80% of stocks are trending up. Although there is no rote magic threshold, generally when more than 65-70% of stocks in this index are trending up, we tend to see trending bullish conditions in the index.

December 10rd, 2012 at 3:45 PM EST


Breaking down the universe into more specifics, on a daily timeframe:

2 stocks, or 4% - today is the first day of their respective Downtrend Want to see downside followthrough from here: Ordered by volume EXPE KORS 2 stocks, or 4% - today is an UNconfirmed bear to bull reversal Confirmation of a reversal is a higher close over todays high in coming sessions: Ordered by volume ISRG NTSP LNN 4 stocks, or 8% - are EXTENDED. Extended means price is more than 2x the average range away from the 21 period moving average. These stocks lend towards mean-reversion, our preference is to wait for the actual reversal before front running the expected snap-back: Ordered by volume POL EME TRS MIC

31 stocks are simply in bullish trends. Unlike the above lists, these stocks dont have a new event today, but rather, are continuing uptrends they may have already been in, whether it be for two days, or two weeks, or more. Ordered by volume SBUX AMGN V CRM STZ ARMH QIHU URI DDD SIRO CERN SSYS IFF POL CVLT DPZ CONN AZPN EME TRS CYBX DK CRAY FNGN RDEN XXIA ABAX INXN MIC These stocks are simply in bearish trends. Unlike the above lists, these stocks dont have a new event today, but rather, are continuing downtrends they may have already been in, whether it be for two days, or two weeks, or more. Ordered by volume EXPE 5

KORS LEN