[isatrader]

A theme that's had a strong run over the last year is the US discount brokers, which with the return of more retail investors could still have further to go into 2014 and so a possible area to watch for a pullback. Attached is the long term monthly charts of ETFC, AMTD, SCHW and IBKR which show that relative performance has been very strong versus the S&P 500, but volume has not found the sector yet.

[Lplate]

A reemerging theme that I'm going to do some work on over Christmas is the Home Builders sector ($DJUSHB), which I think is at a crucial point on the monthly chart recovering above the 10 month MA from it's first significant pullback in the monthly Stage 2 run that made it a leading sector through 2012. The weekly is back into Stage 1 with lots of stocks attempting early breakouts http://stockcharts.com/freecharts/sector...TOR_DJUSHB so I think it's a theme that's worth researching again as the housing recovery has a long way to go yet imo.

Caterpillar now $90 http://scharts.co/1eA8rfu

[isatrader]

The Dow Jones US Building Materials & Fixtures sector ($DJUSBD) made a Stage 2 continuation breakout today to new highs, and over the last the six months or so the sector has had a nice contraction in volatility and traded sideways just below it's relative performance zero line.

The view all the stock charts in the sector and their performance go to: http://stockcharts.com/freecharts/sector...TOR_DJUSBD

A few stocks that caught my eye for potential Stage 2 continuation moves are: FBHS, AMWD, MAS, LPX, PGTI, HW, BLDR and TREX which has already broken out.

[isatrader]

MTOR made a Stage 2 continuation move on Monday on 5.87x the average daily volume and relative performance is strong and above it's rising zero line. So it's showing good volume on this breakout as it did on it's Stage 2A breakout at the end of April from where it advanced around 46% higher before consolidating under it's previous resistance from the 2012 highs. It's formed a large head and shoulders / cup and handle bottom over the last two years, but is now attempting to make a Stage 2 continuation move to new highs. Attached is the charts.

[isatrader]

DRYS made a Stage 2 continuation breakout from a two and half year head and shoulders base, which could be a longer term monthly Stage 2A breakout if it holds to the end of the month. Swing target from the long term base is 6.22

Attached is the long term weekly chart.

[isatrader]

Single digit midgets for the watchlist - COWN, BASI, IFON, NFEC, MBTF, ESEA, NED

[isatrader]

UK stocks for the watchlist - SPA.L, IAE.L, EME.L, EMR.L, LBB.L

[isatrader]

UK stock R4E.L is making a fresh attempt at a Stage 2A breakout this week after running into resistance and pulling back into a broader Stage 1 range in the summer. This time it's clearer of resistance and could complete a head and shoulders pattern.