This week the major averages were down roughly 2%. Oil, AIG and the perennial party pooper Citigroup were the major drivers. As we wrote last week, the current rally was weakening and a potential new trading range might be developing. Against this backdrop it was hard to find too many stocks going up. As a result, our Alert HQ list of signals has shrunk this week to only 9 BUY signals. In addition, we have 4 SELL signals.
Looking back --
Here are a few examples of BUY signals from last week's TradeRadar Alert List and the gains they generated in just five days (and during a down market, too):
- A company providing business process outsourcing to the financial industry gained 19%
- A semiconductor designer and intellectual property provider gained 8%
- A marketer of a range of information technology products and services gained 7%
- A home-based health care provider gained 6%
- A pharmacy benefit manager has gained 22%
- A semiconductor manufacturer has gained 21%
- A diversified industrial and engineering company has gained 15%
- A provider of worker's compensation and liability insurance has gained 13%
As usual, later this weekend I will be writing another post to describe my analysis of the market statistics the Alert HQ software has generated. At first glance, it appears that market internals are weakening, as can be expected when the markets experience a down week. How bad is the damage? Stay tuned for the full analysis.