[isatrader]

Attached are a couple of today's breakouts and breakdowns from my daily scan of the US market.

KONG is making a Stage 2 continuation move to new highs and has had heavy volume the last few months since the initial Stage 2 breakout, and TOL, which is in Stage 3B attempting to make a Stage 4A breakdown.

To see today's complete list of Daily Breakouts and Breakdowns in the US Market that I post each day in the Elite section of the site, then you need to become an elite member. Details can be found on the front page of the forum here: http://stageanalysis.net/forum/index.php#anchor

[goodtyneguy]

For anyone that's interested I posted the Chartmill sectors relative strength list in the main thread last weekend here: http://stageanalysis.net/forum/showthrea...40#pid1440 of which it has 212 sectors and ordered them by the strongest to the weakest.

You can do this yourself on chartmills site at: http://www.chartmill.com/sectorrankings....1&t=C2&s=0 if you want to check if the stock you are looking at is in a strong or weak group, but the chartmill makes up it's own sectors and has almost double the amount than the Dow Jones Indexes, so it can be hard to find them sometimes I've found, and there are no sector charts to view. But it is a useful free tool none the less.

To order the list by the Average Relative Strength of each sector you need to select the drop down menu on the top right called "Order by" and select Average Relative Strength (DESC), or click on the ARS column in the table. 100 is the strongest and 0 is the weakest.

I would hazard guess that their sector groupings are better than the DJ Indices from a like for like perspective. I get the feeling they are a very small outfit, traders themselves and very amenable to requests for improving their product. Perhaps a polite suggestion or two about introducing sector charts would be fruitful. The valid argument would be not only would this benefit stage analysis investors but other top down investors who want to diversify too?

[isatrader]

I would hazard guess that their sector groupings are better than the DJ Indices from a like for like perspective. I get the feeling they are a very small outfit, traders themselves and very amenable to requests for improving their product. Perhaps a polite suggestion or two about introducing sector charts would be fruitful. The valid argument would be not only would this benefit stage analysis investors but other top down investors who want to diversify too?

It's worth asking, but I imagine that it's not an easy thing to do, otherwise they already would considering all of the other charts and scans they have on there. But never hurts to ask.

[anupam384]

Did you like RMTI? If not, could you explain why. I know, it did not form a base for long.

It had a very big volume move from it's lows (possible short squeeze) and has formed a new swing high near 6, so that would be the Stage 2A breakout point to watch imo. But currently the 30 week MA is strongly declining and relative performance is still well below the zero line, as well as being under a fair amount of resistance from the 2012 price action. So I only rate it as Stage 1A personally.

*** Here's the 2nd comment I was trying to post last night.

RMTI's big volume move was b/c they received Stage 1 FDA approval on one of their new dialysis drugs. I was actually long in it at the time and turned a nice little profit. That being said, I agree that it's still in a Stage 1, however look for another pop if the Stage 2 FDA approval comes thru in the near future.

RTMI is up 30% this week as we speak as the 2nd study on their new kidney failure drug came back positive yesterday (it wasn't an FDA approval like I had originally thought). IMO RMTI has moved from a Stage 1 to a Stage 2a/2. I will likely wait a month or so for a pullback and then will jump in on this one as the technicals continue to improve.

I got lucky with RMTI. I got in at 5. It could go as high as 20-25 based on their pipeline. I am staying put now that the stock has been de-risked to a certain extent.

I am still in MAKO, I believe it would need an analyst upgrade or another catalyst to move past 15.66. The last time it was at 15.70 ish was at super high volume and the current volume I think would not be sufficient.

As always thanks for your analysis

[isatrader]

The solar ETF TAN is attempting to make a Stage 2 continuation move today.

Another stock that makes up 3.48% of the TAN solar sector etf is Hanwha SolarOne (HSOL), which made an attempt at a Stage 2 continuation move yesterday, and has had heavy volume the last few days. To see the list of holdings in the TAN etf go to: http://guggenheiminvestments.com/product...n/holdings

[theory6453]

I went hunting for some quality Stage 1 or 2 setups today and landed in the Marine Transportation group which appears to have some life in it. I had recently bought BALT @ $4.74 so I knew that the Industrials sector was at least in a 2B and the Marine Transport group looked to be in a solid Stage 2.

My current favorite of those I found is PRGN as it rose about 40% since its breakout about 2 weeks ago on a great volume spike. PRGN was in a Stage 1 base for about a year prior to this. It’s above the MA, the MA is starting to rise, the relative performance is rising and just popped over the zero line, and finally cleared its overhead resistance. The current P&F price target is $17.75. EGLE and GNK also have a lot of potential.

   

Here is the list of others that I thought looked interesting from this segment:

ANW
DHT
EGLE
ESEA
GLBS
GNK
PRGN
SBLK
ULTR
VLCCF

Cheers,
theory6453

[isatrader]

I went hunting for some quality Stage 1 or 2 setups today and landed in the Marine Transportation group which appears to have some life in it. I had recently bought BALT @ $4.74 so I knew that the Industrials sector was at least in a 2B and the Marine Transport group looked to be in a solid Stage 2.

My current favorite of those I found is PRGN as it rose about 40% since its breakout about 2 weeks ago on a great volume spike. PRGN was in a Stage 1 base for about a year prior to this. It’s above the MA, the MA is starting to rise, the relative performance is rising and just popped over the zero line, and finally cleared its overhead resistance. The current P&F price target is $17.75. EGLE and GNK also have a lot of potential.

Here is the list of others that I thought looked interesting from this segment:
ANW, DHT, EGLE, ESEA, GLBS, GNK, PRGN, SBLK, ULTR, VLCCF

I think it's a really interesting group, and I've highlighted a number of them over the last month when they appeared on my daily breakout scan. BALT, PRGN, and VLCCF on the 16th Aug here: http://stageanalysis.net/forum/showthrea...83#pid1283 and SBLK on the 27th August when it was breaking out into Stage 2A here: http://stageanalysis.net/forum/showthrea...46#pid1346, so it's interesting to see that there's other stocks in the same group moving strongly as well, and as you know this is a major part of Weinstein's method and makes up one third of the "Forest to the Trees" approach (read pages 75-91 in the book).

I see you mentioned the point and figure price target. This varies depending on the scale of the chart you are viewing, so don't rely on this until you have more experience with using point and figure charts, as for example if you used a percentage based chart based on it's recent average true range of roughly 6%, the point and figure price target would be 9.73, and if you used a 1% point and figure box size, the price target would be 10.05, as the traditional box size method is less useful when stocks get down into single digits, so I'd personally suggest using percentage based box sizes when looking at targets. And as I've said before you should use a logarithmic scale on your line charts to be able to see what is happening more clearly when a stock begins to base after a large decline.

For Weinstein's method the main way of calculating the price target is to use the "Swing Rule", where you measure the move from the size of the base. Which in the case of PRGN would give a swing target of 9.49 imo. See page 202 for a full explanation of this.

[isatrader]

To carry on from the previous post attached are a number of other stocks in the Marine Transportation sector that are interesting for the method. I've included a few of the strongest stocks from the sector that are well into their Stage 2 advances DSX, NM, SB and STNG. DRYS is in Stage 2A and SHIP has a seen a big volume increase the last few weeks and is in Stage 1B imo.

Stage 2

               

Stage 2A

   

Stage 1B