Trending and Trading Markets - which is which and how do you deal with them?

We constantly talk about trends here at Trade Radar and now we have an excellent post from our affiliate friends at Market Club that digs into the subject: Trending And Trading Markets – Finding The Best Indicators For Each.

The post discusses the difference between trending markets and trading markets and looks at the different strategies that are required for each type of market. Different indicators may come into play and assume greater importance depending on which kind of market we are currently experiencing.

Investors should remember that individual stocks may be trending while the overall market is in a trading range and vice versa. It can get complicated but Trade-Radar can help.

Primary among the features offered in the Trade-Radar Stock Inspector software is automated trend identification. The software will take a chart and display the classic trend line that touches either the highs or the lows. In addition, the software plots the regression line that shows the slope of price action. Furthermore, the software calculates Arron, MACD and DMI which are classic trending indicators. The simple red-yellow-green lights easily display whether the trend is up, down or indeterminate.

For trading markets the software also provides preferred indicators like moving averages, Stochastics and Williams %R, all with the same simple red-yellow-green indicators.

I would encourage you to read the post at the Market Club blog and then download the Trade-Radar Stock Inspector software to try out some of their strategies. Both are free and they complement each other so well.

Weekend Winners and Losers for May 28, 2010

This post is a combination of our occasional Weekly Review and the Weekend Winners and Losers available at Alert HQ.

Today we have the following stock picks and signals:

• Reversals based on daily data, we have 20 Alert HQ BUY signals and 9 SELL signals
  
• Reversals based on weekly data, we have 2 Alert HQ BUY signal and 331 SELL signals
  
• We have 24 Bollinger Band Breakouts based on daily data and 170 Breakouts based on weekly data.
• We have 605 Cash Flow Kings
• 76 Swing Signals -- every one is a BUY signal
• 18 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have 4 stocks that are new additions to the list and 3 that fell off the previous list.
• 28 Trend Busters based on daily data of which 21 are BUY signals. We also have 183 Trend Busters based on weekly data (all are SELL signals!)
  
• 179 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed. We see 66 downside gaps and 113 upside gaps based on daily data. We also have 36 Gap Signals based on weekly data.

The view from Alert HQ --

This weekend shows some normalcy returning to the Alert HQ signals. There are some BUY signals on the Trend Busters list where it had been all SELL signals recently. The Trend Leaders list seems to have bottomed out. Upside gaps outnumber downside gaps by a reasonable number.The Reversals based on daily data have a modest number of BUY signals and a small number of SELL signals.

Where things are still a little wacky is on the Swing Signals list where we again have nothing but BUY signals. This is an unusual occurrence that has been happening only during the last week or so of this current downturn. Also unusual is the preponderance of SELL signals on the Reversals list based on weekly data.

What all this indicates is that things are settling down but we are not yet back to normal. A look at some of the numbers we track at Alert HQ may help put things in perspective.

In the chart below we count the number of stocks above various moving averages and count the number of moving average crossovers, as well. We scan roughly 6400 stocks and ETFs each weekend and plot the results against a chart of the SPDR S&P 500 ETF (SPY).

The yellow line showing the total number of stocks above their 50-day moving average has dipped down to levels last seen at the March 2009 lows. There is a bit of a rebound going on now and that is a hopeful sign. The magenta line showing how many stocks still have their 20-day MA above their 50-day MA has plunged straight down and no rebound has occurred yet. About the best that can be said of this chart is that maybe things won't get much worse. Thus far, there aren't many solid signs of recovery in evidence.

The next chart provides our trending analysis. It looks at the number of stocks in strong up-trends or down-trends based on Aroon analysis.

The yellow line showing total number of stocks in up-trends has fallen about as low as it can go. The red line showing number of stocks in down-trends is at an elevated level but not at a record high. Once again, there's not much good that's evident in this chart. It does make a case, however, for saying that we are due for a bounce.

The outlook --

Though the Dow and the S&P 500 are still struggling, the NASDAQ (and QQQQ), the Vanguard VTI Total Market VIPERS (VTI) have at least recovered above their 200-day moving averages and that's a good sign. It is often significant when an index or stock tests the 200-day MA and is able to close above that level. It is usually a sign that things will be getting better.

Yesterday I wrote a post detailing my arguments why stocks are not over-priced, especially considering how oversold we are. You can read it here.

Which leads me to say that from both a technical and a fundamental viewpoint, stocks should be ready for a bounce. Let's just hope the European situation doesn't derail what should be an imminent recovery.

Does the market deserve to be this over-sold? Value analysis might surprise you

Stocks just finished May with a fairly awful performance. As I looked through some of the data generated by my Alert HQ process I saw some of the indicators had actually gotten worse than during the period around March 2009 and others were getting close.

I had to ask myself the question that is the title of this post: Does the market deserve to be this over-sold?

Stocks can continue in an over-sold state until fear dissipates, values become compelling and buyers are motivated to return to the market. Are we at that point yet?

Fear is difficult to quantify but we can put a number on value. Common measures of value are Price-Earnings ratios (PE) and Enterprise Value-to-EBITDA ratios. EBITDA is earnings before interest expenses, taxes, depreciation and amortization. Many investors prefer to look at the EV-to-EBITDA ratio because it avoids some of the games that can be played when calculating the earnings component that goes into the PE ratio.

PE Ratio analysis --

The following table shows a breakdown of stocks into categories based on PE. Typically PE less than 16 implies that a stock is still a reasonable value, 16 to 30 means the stock may be getting a bit pricey but almost all growth stocks are in this range so it is not necessarily a bad thing. PE greater than 30 is definitely getting away from value.

Description	Count	% of total
No PE available or PE less than 0 (ie: not profitable)	1841	34%
PEs less than or equal to 16	1711	31%
PEs between 16 and 30	1065	20%
PEs greater than 30	822	15%
Count of all stocks	5439	100%

As this table shows, roughly one third of stocks are not profitable at all, roughly have of all stocks are reasonably priced and only 15% of stocks are over-priced. Indeed, almost one third of stocks are in the sweet spot where PE is less than 16.

PE analysis does not suggest to me that stocks are over-valued and deserve to fall further. There are always tons of companies that are unprofitable, even during the best of times. Most stocks seem to be fairly valued or are even somewhat cheap

EV-to-EBITDA analysis --

This next table takes the same approach as above while looking at the EV-to-EBITDA ratio.

Description	Count	% of total
No EV-to-EBITDA value available or EV-to-EBITDA ratio less than or equal to 0 (ie: not profitable)	2090	38%
EV-to-EBITDA ratio less than or equal to 6	718	13%
EV-to-EBITDA ratio between 6 and 12	1591	29%
EV-to-EBITDA ratio greater than 12	1042	19%
Count of all stocks	5439	100%

The results here are very similar to our PE analysis. Roughly a third of stocks are apparently unprofitable. Nearly half of all stocks are good values or decent values. Less than 20% are pricey.

Conclusion --

The market certainly does not appear to be over-valued here. Based on the analysis laid out above, it is hard to see why stocks should fall any further.

On the other hand, there is still fear of Europe, fear of financial reform, fear the job market is not improving fast enough, fear of Obama, fear of inflation, fear of deflation, etc. In other words, the usual litany of issues that the bears so delight in describing over and over.

There is always worry about the future. What's so different about this list of worries? Not all that much. Eventually, the fundamentals will win out and value will be recognized. It shouldn't be long now.

Durable Goods Report -- No disappointment for me

Well, I'm a few days late in providing my analysis of the most recent Durable Goods report but better late than never.

The headline number for April was strong (New Orders up 2.9%) but many analysts pointed out that ex-transportation, (transportation comprised mostly of contributions from Boeing) the overall number for new orders decreased.

Be that as it may, I mostly focus on tech and in that sector the news was much better as the following charts will show.

Today I will only be presenting the two charts that show Shipments and New Orders for the Computers and Electronic Products category which is a summary or aggregate of Computers and Related Products, Communications Equipment and Semiconductors. The folks who compile the numbers have decided that Semiconductors will no longer be tracked separately but will be included in the aggregate Computers and Related Products numbers.

Shipments --

So let's start with a little history. Shipments are a backward looking measure as they reflect new orders that have been confirmed, manufactured and shipped. The following chart shows how shipments look for the overall tech sector:

You can see that the monthly data series is volatile but that the trend is clearly upward. Indeed, we are reaching levels seen prior to the Great Recession.

New Orders --

The forward looking measure that Wall Street gives the most credence to is the New Orders number. The following chart shows New Orders for the tech sector:

The trend for New Orders remains unmistakably upward. This bodes well for the coming months and, given that the summer can sometimes exhibit a seasonable slowdown in the tech sector, this is an especially welcome sign.

Conclusion --

Tech stocks and tech ETFs may seem to be struggling in the stock market these days but the sector continues to operate from a position of strength. From a fundamental point of view, tech is moving conclusively off its lows and the upward trend remains intact. This would seem to be confirmed by the positive guidance tech company management provided during the Q1 earnings season (see post "So who do we listen to? Management or the stock market pundits?")

With the market well off its highs, this looks an awful lot like a buying opportunity for tech and the Durable Goods report, far from being a disappointment, only proves the point. I've made my move (see disclosure below). What about you?

Disclosure: recently re-entered positions in ROM and USD

Is the turn-around here? -- Alert HQ signals for Thursday, May 27, 2010

This post is announcing that Thursday's Swing Signals, Trend Leaders, Trend Busters and Gap Signals are now available at Alert HQ. All are based on daily data.

Today we have the following:

• 345 Swing Signals -- 344 BUY signals and 1 SELL signal.
  
• 17 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have 9 stocks that are new additions to the list and 2 that fell off the previous list.
  
• 44 Trend Busters, of which 35 are BUY signals and 9 are SELL signals.
• 187 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed. 70 are bearish gaps and 117 are bullish gaps.
  

The view from Alert HQ --

Stocks popped today and the Alert HQ signals have started to really turn around.

The Swing Signals are usually the most responsive indicators and today's list of 345 signals, all but one BUY signals, shows the early signs of  a turnaround. Similarly, the Gap Signals list shows upside gaps strongly outnumbering downside gaps. These are first signs of bullishness we've seen in a while and they shouldn't be ignored.

Another positive development is that the Trend Leaders list has started to improve. After hitting an all time low just two days ago, the list is starting to increase and fewer stocks are falling off the list. Likewise, the Trend Busters list has gone from nearly all SELL signals to mostly BUY signals.

Investors will certainly need to see some follow-through after today's big rally in order to declare the downturn over. For example, I'd like to see the S&P 500 move definitively above its 200-day moving average and the NASDAQ conclusively closing that downside gap from a week ago. 

In any case, I think it is at least possible to say that we have seen all the damage we are likely to see.So be sure to look to Alert HQ for the stocks that are making the early moves to the upside.

Really, really last chance for discount on Trade-Radar Software --

This weekend I will be sending a $10 discount coupon code out to members of the Trade-Radar Software Users Group. Not a member yet? Go to the Download page and click on the button for the 45-day free trial. A form will appear that allows you to sign up for the users group at that time.

Already downloaded the software? No problem. There's a link to the sign-up page on the Trade-Radar homepage.

All the new features in the new Trade-Radar Stock Inspector software will make it an indispensable tool for your investing. Try the 45-day free trial right away!

Using our signals --

If you're a momentum trader, the Trend Leaders list is a good place to go shopping. If you practice technical analysis, check out the Trend Busters. And if you are a short-term trader or even a day trader, our Swing Signals or Gap Signals may provide some good trading ideas.

Found a few stock picks you are interested in? If you are looking to refine your entry and exit points, you should take a look at what our friends at Hottinger's E-Zone Signals have to offer.

Alert HQ signals for Tuesday, May 25, 2010

This post is announcing that Tuesday's Swing Signals, Trend Leaders, Trend Busters and Gap Signals are now available at Alert HQ. All are based on daily data.

Today we have the following:

• 39 Swing Signals -- 38 BUY signals and 1 SELL signal.
  
• 10 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have 4 stocks that are new additions to the list and 2 that fell off the previous list.
  
• 125 Trend Busters, all of which are SELL signals.
• 159 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed. 125 are bearish gaps and 34 are bullish gaps.
  

The view from Alert HQ --

Stocks struggled back from deep losses today but it wasn't enough to shift our Alert HQ signals to full-fledged bullishness.

Though the Swing Signals list is bursting with BUY signals, the Trend Leaders list has fallen to an all-time low. The Trend Busters list has swelled but every single stock on the list is generating a SELL signal. The Gap Analysis has downside gaps a 4-to-1 majority over upside gaps.

This is all very distressing. Stocks are completely oversold yet the market seems unable to establish a definitive bottom.

Last chance for discount on Trade-Radar Software --

By the way, in a couple of days I will be sending a $10 discount coupon code out to members of the Trade-Radar Software Users Group. Not a member yet? Go to the Download page and click on the button for the 45-day free trial. A form will appear that allows you to sign up for the users group at that time.

All the new features in the new Trade-Radar Stock Inspector software will make it an indispensable tool for your investing. Try the 45-day free trial right away!

Using our signals --

If you're a momentum trader, the Trend Leaders list is a good place to go shopping. If you practice technical analysis, check out the Trend Busters. And if you are a short-term trader or even a day trader, our Swing Signals or Gap Signals may provide some good trading ideas.

Found a few stock picks you are interested in? If you are looking to refine your entry and exit points, you should take a look at what our friends at Hottinger's E-Zone Signals have to offer.

So who do we listen to? Management or the stock market pundits?

The first quarter earnings season is pretty much wrapped up and investors, with their short memories, consider it ancient history.

With markets in turmoil, the question is whether we are seeing a correction or something worse. As stocks struggle with their 200-day moving averages, it is clear that we don't quite have an answer yet. Certainly the blogosphere is lit up with bearish declarations while bulls, less exuberant than before, keep a worried eye on the charts.

Looking for guidance --

One clue left over from earnings season may help us get closer to determining the future state of the stock market. Whereas earnings are historical numbers, out of date the minute they are released, company guidance is forward looking and provides the best assessment management has of the coming months.

I have been collecting earnings, revenue and guidance data for this earnings season and have amassed a information on over 2000 companies. The following table provides the detail on guidance broken down by industry sector.

(Click table to view larger image)

Here are some takeaways from the data presented above:

• Technology companies were most willing to provide guidance. Hopefully, this means many of them had clear visibility.
• Technology companies also comprised one of the sectors that had the most instances of Upside guidance based on the percentage of companies in the sector that offered any guidance at all.
• The Capital Goods sector actually had the best result in terms of highest percentage of Upside guidance at 37% with a respectable total of 47% of sector participants offering guidance. This sector includes companies like the automakers (Ford, Honda, etc.), Lockheed Martin, McDermott International, Boeing, homebuilders (Beazer, Hovnanian), Alcoa, General Dynamics and many more.
• Looking at the consumer sector, there is a mixed picture. Though the Consumer Services sector has only a modest 14% of companies providing upside guidance, the Consumer Non-Durables sector is reporting 27% and the Consumer Durables sector is reporting 13%. This suggests the U.S. consumer is regaining some strength though he/she is still a bit wobbly.
• The Finance sector remains one of the least optimistic sectors with a relatively small percentage of companies providing upside guidance and the largest percentage of companies providing downside guidance.

Overall, 23% of companies offered Upside guidance based on the total number of companies that offered any guidance at all. A mere 9% of companies offered Downside guidance.

Conclusions --

All told, 40% or the companies in my database offered guidance.

In general, I find it hard to believe that we are headed for another bear market when nearly a quarter of those companies that offered guidance are saying the outlook appears to be better going forward. On the flip side, it is hard to be too negative when only 9% of them are expecting their businesses to get worse.

While it is true that some managements may sugar-coat guidance in order to give their stock a short-term boost, eventually analysts and investors will see the true outcome. A stock that falls short of elevated expectations tends to plunge further than a stock that merely meets low expectations.

So short of another black swan economic event (a new Korean war, perhaps? the U.K. defaults?) I tend to believe that it is reasonable to take the preponderance of positive guidance as a sign of better times to come.

Correction or bear market? So far I'm leaning toward correction and considering it a buying opportunity.

Trend leader or value stock? Family Dollar continues its climb

I have had a recurring set of posts where I look at stocks that are strong enough to be on the Trade-Radar Trend Leaders list yet remain reasonably priced.

After running this weekend's Alert HQ process there was only one stock that met this criteria: Family Dollar Stores (FDO).

Background --

The profile from Yahoo! Finance is concise and descriptive enough: "Family Dollar Stores, Inc. operates a chain of self-service retail discount stores for low to lower-middle income consumers in the United States. The company offers consumables, including household chemicals, paper products, candy, snacks and other food, health and beauty aids, hardware and automotive supplies, pet food, and supplies; and home products, which comprise domestics, housewares, giftware, and home decor. It also provides apparel and accessories, including men's and women's clothing, boys' and girls' clothing, infants' clothing, shoes, and fashion accessories; and seasonal and electronics, such as toys, stationery and school supplies, seasonal goods, and personal electronics. As of February 3, 2010, it operated approximately 6,600 stores in 44 states and the District of Columbia."

Family Dollar sells most of its merchandise for $10 and less and typically draws shoppers with household incomes of $40,000 or less.

Financials --

I mentioned above that the company is still reasonably priced despite the run-up in its stock.Some the measures that show the company is in value territory:

• Price-to-Sales ratio of 0.72 less than 1 is in value stock range
• Price-to-Book ratio less than 4 is in reasonable value range
• PEG ratio is 1.17 which is borderline
• Debt-to-Equity ratio is extremely low
• Enterprise multiple (Enterprise Value to EBITDA ratio) is less than 8 which is in value territory
• Return on Assets and Return on Equity are both strong and, taken together, show superior management effectiveness
• Year-over-Year Revenue growth is less that 5% which is nothing to write home about but Year-over-Year Earnings growth of 33.4% is excellent
• The Trade-Radar Annualized Cash Flow Yield calculation comes out to almost 20% which very good, indeed
• The company pays a dividend and, as a matter of act, just increased it.

Below we present the chart of Revenue, operating income and operating margin. Not only do we see increases in these financial measures year-over-year but on a quarterly sequential basis, as well.

Charts --

Since this stock is on the Trade-Radar Trend Leaders list, the following chart shows some of the trending indicators that we track: Aroon, DMI and MACD.

The trending indicators are all still positive though looking a bit tired. What is amazing, however, is that despite the general stock market dropping roughly 10%, this stock has just continued its march upward. So it hardly seems to be much of a negative to see the trending indicator loose a little a strength given how this stock has outperformed the market over the last few weeks.

The outlook --

JP Morgan upgraded Family Dollar to "overweight" from "neutral," saying the discount chain operator's efforts like longer store hours, space reallignment and more advertising are going to help it drive sales in the future.

With Walmart struggling to show earnings gains lately, there are those who expected Family Dollar to also show weakness. The opposite seems to be happening. As JP Mortgan says: ""Over the past few months, the 'stickiness' of dollar stores has been above our expectations as shoppers have elevated the importance of convenience to their retail destination decision."

As consumers who only discovered Family Dollar during the economic downturn realize that stores like this offer good prices, convenience and even preferred brands, they may have a hard time changing their new found habits of visiting the store even as the economy begins to improve. And given how slowly jobs seem to be coming back, there are plenty of customers who will continue to patronize the stores because a bargain is a  bargain and when money is tight, price counts.

Disclosure: no positions

36 Reasons to download the new Trade-Radar software

At long last the newest version of the Trade-Radar Stock Inspector software is available for download.

For those of you who have not tried the earlier versions of the software, it might be worth it to review the basics before we get into the new features. Basically, the primary function of the Trade-Radar system is to identify reversals in price movements. These reversals are translated into BUY signals or SELL signals. The trick, of course, is to determine if the reversal is significant enough to enter a trade with confidence. We've added a ton of new indicators to help you make that decision.

Furthermore, the Trade-Radar software makes it easy for you to assess the valuation and financial strength of any U.S. stock in which you might be interested. If you believe that risk is lower when you invest in stocks that are not over-valued, then these indicators are just what you've been looking for.

What's new in version 5.2 --

Now that we have the basics out of the way, we can start to describe all the new functionality that has been added.

First, the install process is greatly simplified and now works on more varieties of PCs.

The next thing you would notice is that we've added a toolbar. It is now much more obvious all the different pieces of functionality that the program offers. Included on the toolbar is an icon that links to a vastly improved help file in standard Windows format that is organized with a table of contents and is completely searchable.

Charts --

The chart screen has also been improved. In addition to previous functionality allowing you to automatically set the chart to identify trading signals, generate trend lines, moving averages, slope lines and Fibonacci retracement lines, you can now save settings, reset settings, change between candlesticks or open-high-low-close bars and, if you right-click on the top chart, you will find a whole bunch of options for changing chart attributes and looking at the data.

The Dashboard --

The Dashboard has been greatly expanded and now includes three tabs. Here's what the tabs offer:

The first one is the TradeRadar Technical Analysis tab. Here we describe all the proprietary TradeRadar indicators including signal strength, angle-of-attack, trend difference, the "In the Zone" indicator and the new statistical indicator that evaluates slope lines and standard deviation.

The next tab provides all the Standard Technical Analysis indicators. Included now are the following: Aroon, MACD, DMI, Chaiken Money Flow, Slow Stochastics, Williams %R, Bollinger Bands, 20-day moving average, 50-day moving average and moving average cross-over. Each indicator has a quick help button and is also explained in the help file.

The third tab is dedicated to Fundamental Analysis. Included are the following indicators: Annual Dividend Yield, Qtrly Revenue Growth, Qtrly Earnings Growth, Beta, Return on Equity, Enterprise Value/EBITDA, Debt to Equity, Market Capitalization, PE, Price-to-Sales, Price-to-Book, PEG, Annualized Cash Flow Yield, Debt-to-Equity Ratio, Cash flow to Debt Coverage Ratio, Survivability, Return on Assets, Dividend analysis including yield, forward dividend rate and dividend sustainability.

All told, we now have 36 separate indicators that are evaluated and results displayed with a simple red-yellow-green light  so you can tell at a glance how the stock is doing. Those 36 indicators are the 36 reasons you should download the software but, actually, we're not done yet.

Portfolio Management --

The old Portfolio system wasn't very robust. The new one provides everything you need. It now supports unlimited trades, scaling in or out of trades, long or short trades and a summary report on closed trades as well as status of open trades. For open trades, the summary pulls latest market data to show you whether the position is currently profitable or not.

Why it's shareware now --

In the past, all versions of the Trade-Radar software were completely free. With all the improvements that have been made, we felt we had no choice but to begin to charge a modest fee for it. As we worked on the software, we liked it so much that we came up with the following slogan: "So good we had to make it shareware!"

Note that after the 45-day free trial expires, the Dashboard will be disabled. You can re-enable the Dashboard by registering the software and obtaining a key. 

Join the Trade-Radar Software Users Group and receive a discount --

We have a redesigned Download page and I hope you'll check it out. If you opt for the 45-day Free Trial, you will have an opportunity to sign up to receive emails for the Trade-Radar Software Users Group. It a good idea to join the Users Group so you can keep up to date on new developments with the software. But next week I'll be emailing a coupon code out to all members of the Users Group that provides a $10 discount on purchase of the software. That's roughly a 25% discount. The coupon is only valid for the next four weeks so don't wait too long.

You can take a look at screen shots on the Features page. In the mean time, I encourage you to download the software right away and be sure to sign up for the Users Group.

Alert HQ signals for Tuesday, May 18, 2010

This post is announcing that Tuesday's Swing Signals, Trend Leaders, Trend Busters and Gap Signals are now available at Alert HQ. All are based on daily data.

Today we have the following:

• 20 Swing Signals -- 13 BUY signals and 7 SELL signals.
  
• 54 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have 24 stocks that are new additions to the list and 29 that fell off the previous list.
  
• 44 Trend Busters of which 3 are BUY signals and 41 are SELL signals.
• 145 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed. 92 are bearish gaps and 53 are bullish gaps.
  

The view from Alert HQ --

A decent day turned into a rout and our Alert HQ signals reflect the damage.

The Trend Busters list shows that more stocks continue to break down below their previously bullish trend lines. We are seeing more downside gaps than upside gaps. The Trend Leaders list can't seem to increase from all time low levels.

The only of bullishness is on our Swing Signals list where a number of beaten down stocks have managed to show enough of a rebound to generate a BUY signal.

My attitude thus far is that we shouldn't be shorting this market. The U.S. economy continues to show signs of recovery and I can't help but think that the current downturn is an overdue correction and a buying opportunity.

This is not to say that I can't change my mind if there is a change in circumstances. The folks at MarketClub have produced a video that examines the S&P 500 and suggests critical levels to watch. Click here to check out their free video. If the market breaks down below the levels they're looking at in this video it's "look out below!"

Using our signals --

If you're a momentum trader, the Trend Leaders list is a good place to go shopping. If you practice technical analysis, check out the Trend Busters. And if you are a short-term trader or even a day trader, our Swing Signals or Gap Signals may provide some good trading ideas.

Found a few stock picks you are interested in? If you are looking to refine your entry and exit points, you should take a look at what our friends at Hottinger's E-Zone Signals have to offer.

There's always a stock rising somewhere - USANA an unlikely candidate

Every week or so I profile a few stocks that fall into the category of "reasonable value" and are showing strong charts. Today I'll submit just one stock, mostly because the recent downturn has played havoc with so many companies charts.

The stock in question is USANA Health Sciences (USNA). According to Yahoo!, here is what the company does: "USANA Health Sciences, Inc. engages in the development, manufacture, and sale of nutritional and personal care products in North America and the Asia Pacific. The company offers two product lines, USANA Nutritionals and Sense. The USANA Nutritionals product line consists of essentials, which include vitamins and mineral supplements. The Sense product line includes personal care products that support healthy skin and hair."

So what we have is a very consumer-driven health care company. Not particularly unique in itself but the company seems to be doing very well. Even with the recent run-up in its stock, it doesn't seem to be over-priced. I'll illustrate what I mean by "reasonable value" by showing the Fundamental analysis tab from the new Trade-Radar Stock Inspector software.

Click graphic above to view larger image

Just check it out - almost every indicator is green.Valuation indicators, debt analysis indicators, revenue and earnings growth and management effectiveness. The company seems to be running on all cylinders.

I mentioned above that the stock had a strong chart so here it is:

You can see that the trending indicators, Aroon, MACD and DMI, are all reasonably bullish. You can also see that prices are bumping up against the topmost Fibonacci line. Could this indicate a buying opportunity coming up?

Disclosure: no positions

If you're interested in seeing more about the Trade-Radar Stock Inspector software, visit the Features page.

Weekend Winners and Losers for May 14, 2010

This post is a combination of our Weekly Review (seldom seems to arrive on a weekly basis lately) and the Weekend Winners and Losers available at Alert HQ.

Today we have the following stock picks and signals:

• Reversals based on daily data, we have 11 Alert HQ BUY signals and 121 SELL signals
  
• Reversals based on weekly data, we have 1 Alert HQ BUY signal and 140 SELL signals
  
• We have 37 Bollinger Band Breakouts based on daily data and 212 Breakouts based on weekly data.
• We have 599 Cash Flow Kings
• 14 Swing Signals -- 9 BUY signals and 5 SELL Signals
• 59 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have 11 stocks that are new additions to the list and 17 that fell off the previous list.
• 30 Trend Busters based on daily data of which 3 are BUY signals. We also have 50 Trend Busters based on weekly data.
  
• 283 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed. We see 105 downside gaps and 178 upside gaps based on daily data. We also have 42 Gap Signals based on weekly data.

The view from Alert HQ --

This weekend's Alert HQ signals start out with some pretty strong negativity with bearish reversals swamping bullish reversals. The Trend Busters look equally weak while the Trend Leaders continue to tread water at all time lows, the list being only 10% of what it was a month ago.

Glimmers of hope appear, however, in the Swing Signals where BUY signals again outnumber SELL signals and in the Gap Analysis list where upside gaps dominate.

With so many reversal SELL signals being registered, it's hard to say that the market has reached a bottom. Let's see if  looking at some of the numbers we track at Alert HQ will shed any light on the question.

In the chart below we count the number of stocks above various moving averages and count the number of moving average crossovers, as well. We scan roughly 6500 stocks and ETFs each weekend and plot the results against a chart of the SPDR S&P 500 ETF (SPY).

Despite what seemed like yet another meltdown on Friday, stocks seem to be bouncing back according to this chart. The number of stocks above their 50-day moving average (yellow line) went from less than 1500 last week up to almost 2800 this week. Not great but an improvement nonetheless. And it has been enough to nearly halt the drop in the number of stocks whose 20-day MA is above their 50-day MA (magenta line).

Though not shown on the above chart, the number of stocks above their 20-day moving average has gone from a deeply over-sold level of 658 last week up to 2048 this week. At least things are moving in the right direction.

The next chart provides our trending analysis. It looks at the number of stocks in strong up-trends or down-trends based on Aroon analysis.

Here, the phrase that comes to mind is "less bad". The number of stocks in strong up-trends has dwindled to levels last seen in November 2009. The "less bad" aspect is that the number of stocks in down-trends spiked last week but us considerably lower this week. That often seems to happen during a bottoming process as down-trends give way to neutral action which is followed by up-trends.

Looking at SPY in a little more detail, the next chart applies Fibonacci Retracement lines.

This chart shows a few things, none of them particularly encouraging. One thing is that Friday gapped lower and the gap was not closed. That is generally a bearish development. There is a  former support line right around the Fibonacci 61.8% line that could soon act as resistance. And then there's Fibonacci. SPY fell almost to 0% line the day of the "flash crash", quickly rebounded all the way to a level above the 61.8% line and then on Friday, SPY traded across the full range between the 50% and 61.8% lines.

To sum up, we have a gap down which is bad, glimmers of hope in the Alert HQ signals, Alert HQ charts suggesting potential bottoming and Fibonacci showing we've bounced off almost every line possible.

Bottom line is that the charts have turned into a mess of volatility. I lean toward thinking the bottom is in but I wouldn't blame anyone for standing back and keeping this market at arms length.

On the economic front, retail sales this week were reasonably strong though not every retailer enjoyed equally good results. Bellwether Cisco reported excellent earnings and the usually cautious outlook served to sink the stock. I would rather see the Cisco glass as half full, not half empty, and that is a good sign for tech overall.

Coming up in the week ahead we will have reports on housing starts and building permits, PPI and CPI, the Conference Board's leading indicators and the Philadelphia Fed's manufacturing index. None of these is hugely market moving so I suspect the market will spend some time licking its wounds and keeping a wary eye on Europe.

Alert HQ signals for Thursday, May 13, 2010

This post is announcing that Thursday's Swing Signals, Trend Leaders, Trend Busters and Gap Signals are now available at Alert HQ. All are based on daily data.

Today we have the following:

• 74 Swing Signals -- 74 BUY signals and absolutely no SELL Signals!
• 65 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have 43 stocks that are new additions to the list and 9 that fell off the previous list.
  
• 30 Trend Busters of which 22 are BUY signals and 8 are SELL signals.
• 277 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed. 68 are bearish gaps and 209 are bullish gaps.
  

The view from Alert HQ --

Despite the late day sell-off, Alert HQ signals look pretty darn bullish. Though numbers are within more normal ranges, it is significant that for the second time ever we see all BUY signals and no SELL signals on the Swing Trading Signals list. BUY signals outnumber SELL signals on the Trend Busters and Gap Analysis lists. The only negative sign is that the Trend Leaders list, though almost double what we had earlier in the week, is still at an extreme low.

What we seem to be seeing is a wave of stocks rebounding from last week's sudden plunge and attaining more reasonable levels. What we are also seeing is that the broad market has yet to truly repair the damage that was sustained last week.

It would be nice to be unabashedly bullish right now but the slowness with which the Trend Leaders list is recovering, combined with stocks being pummeled in Asia as I write this post, leads me to continue to counsel caution.

Though I still believe this downturn is a buying opportunity, I also feel that stocks will need to take a little time to pull themselves out the funk that seems to have seized investors suddenly. Keep looking to Alert HQ for the early signs that stocks are recovering. Confirmation from the Trend Leaders list will be an important "tell".

Using our signals --

If you're a momentum trader, the Trend Leaders list is a good place to go shopping. If you practice technical analysis, check out the Trend Busters. And if you are a short-term trader or even a day trader, our Swing Signals or Gap Signals may provide some good trading ideas.

Found a few stock picks you are interested in? If you are looking to refine your entry and exit points, you should take a look at what our friends at Hottinger's E-Zone Signals have to offer.

Tug of war at Alert HQ - signals for Tuesday, May 11, 2010

This post is announcing that Tuesday's Swing Signals, Trend Leaders, Trend Busters and Gap Signals are now available at Alert HQ. All are based on daily data.

Today we have the following:

• 256 Swing Signals -- 254 BUY signals, no SELL signals and 2 Strong BUYs. A record!
  
• 31 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have 14 stocks that are new additions to the list and 14 that fell off the previous list.
  
• 31 Trend Busters of which 12 are BUY signals and 19 are SELL signals.
• 282 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed. 88 are bearish gaps and 194 are bullish gaps.
  

The view from Alert HQ --

This post evokes a tug of war because of the divergent results we're getting today at Alert HQ.

I've never had a list of Swing Trading Signals that was so large and had absolutely no SELL signals. This should be a hugely bullish sign but Alert HQ is also handing us some warning signals. The Trend Busters list has more SELL signals than BUY signals, the Trend Leaders list is still knocking around at all-time lows while there are a ton more upside gaps than downside gaps.

So my feeling is that the long-term trend remains up while the short-term trend is shaky at best. In this kind of situation, some stocks will pop while others with flounder. Look to Alert HQ to pick up on some of the quick moves while waiting for the trends to resolve themselves.

Using our signals --

If you're a momentum trader, the Trend Leaders list is a good place to go shopping. If you practice technical analysis, check out the Trend Busters. And if you are a short-term trader or even a day trader, our Swing Signals or Gap Signals may provide some good trading ideas.

Found a few stock picks you are interested in? If you are looking to refine your entry and exit points, you should take a look at what our friends at Hottinger's E-Zone Signals have to offer.

Market still in no man's land -- or why I haven't bought any double short ETFs

Markets had pulled back to the point where they were flirting with a "correction" - a decline of 10% or more. The NASDAQ had already achieved that dubious distinction.

I have written a good number of posts defending the use of ProShares leveraged ETFs including the inverse or short variety. And I put my money where my mouth is - I almost always have one or two ProShares ETFs in my portfolio.  This time, however, is different.

As stocks dropped, the double long Ultra ProShares ETFs in my portfolio hit stops and were sold. But I could not immediately switch over to the double short ETFs. The reason why can be summed up in one word: trend.

Look as this weekly chart of the NASDAQ 100. I have drawn two trend lines on it and both lines reflect the bullish trend that has been in place for the last year.

The green trend line starts at the March 2009 low and touches the early February 2010 low. According to this trend line, the NAZ has broken to the downside but has nearly recovered. So it is unclear if this is a true change in trend, from bull to bear.

The March 2009 low was a really extreme point so it's validity in trend analysis may be questionable. The blue line, therefore, identifies an alternate trend line, one that starts at the mid-July 2009 low and touches the same early February 2010 low. According to this analysis, the NASDAQ 100 touched the trend line last week and, after Monday's powerful rally, is now comfortably above it again. Note that the index is now between the two trend lines and also above the support line at 1900.

My personal investing style, as you may have guessed, requires being comfortable that a definite trend is in place. I'm not particularly enthusiastic about very short-term trades, even with leveraged ETFs.

As I look at a chart like that above, I am not confident that the bullish trend has given way and that a new bearish trend has been established. The result is that, while I wait for confirmation on the direction of the latest trend, I can't yet commit to the ultra short ETFs.

Dislcosure: no positions

Eight stocks bucking the down-trend --- some even have good financials!

Instead of doing our usual quick post announcing that the weekend's free stock signals are now available at Alert HQ, I'd like to just focus on a few stocks that are standing out from the crowd.

Since almost all the signals at Alert HQ are SELL signals, why dwell on the negative? Instead, I'd like to present eight stocks that are still looking good despite the current pull-back.

The following stocks are the only ones that were added to the Trend Leaders list this week. Usually, there are over a hundred stocks that come onto the list in any given week. This time - just eight. What this means is that these eight stocks are exhibiting strong up-trends as measured by Aroon, MACD and DMI analysis.

Symbol	Name	Price
DPS	Dr Pepper Snapple Group, Inc	$35.72
IDSA	Industrial Services of America, Inc.	$19.62
CPEX	CPEX Pharmaceuticals, Inc.	$25.25
CBAN	Colony Bankcorp, Inc.	$8.62
CLW	Clearwater Paper Corporation	$60.01
FFFD	North Central Bancshares, Inc.	$19.27
SRLS	SeraCare Life Sciences Inc	$5.09
ABCO	The Advisory Board Company	$38.09

So from a technical analysis point of view, all of these stocks are relatively strong. From a fundamental point of view it's more of a mixed bag. Still, there are a few that stand out for have strong financials as well as attractive charts. In particular, Dr Pepper Snapple and Clearwater Paper Corporation are exceptional while Industrial Services of America and SeraCare Life Sciences look pretty good, too.

As evidenced by these stocks, there's still life in this market and I wouldn't be too quick to throw in the towel.

Disclosure: no positions

Who are the Earnings Season Leaders?

While the market gyrates, earnings season proceeds apace. This post looks at what I think of as the Earnings Season Leaders. These are the stocks that have shown  all of the following three characteristics:

• Year-over-year Revenues up 20% or more
• Actual Earnings beat First Call estimates by 20% or more
• Actual Earnings up 20% or more year-over-year

From a fundamental point of view, these are the stocks at the top of the heap. Given how crazy the market has been lately, there's no guarantee that these stocks are outperforming in terms of stock price.

The last time I sliced and diced earnings season data, I had some requests to list the companies within the sectors that were outperforming. So today I provide a detailed list of the companies and what sector and industry they are in.

Sector	Industry	Symbol	Name
Basic Industries	Agricultural Chemicals	SMG	Scotts Miracle-Gro Company (The)
Basic Industries	Forest Products	WY	Weyerhaeuser Company
Basic Industries	Home Furnishings	FUL	H. B. Fuller Company
Basic Industries	Major Chemicals	LZ	Lubrizol Corporation (The)
Basic Industries	Major Chemicals	CYT	Cytec Industries Inc.
Basic Industries	Major Chemicals	DOW	Dow Chemical Company (The)
Basic Industries	Major Chemicals	ADES	ADA-ES, Inc.
Basic Industries	Major Chemicals	ROC	Rockwood Holdings, Inc.
Basic Industries	Major Chemicals	ATMI	ATMI Inc.
Basic Industries	Major Chemicals	PPO	Polypore International Inc
Basic Industries	Major Chemicals	NLC	Nalco Holding Company
Basic Industries	Major Chemicals	ARJ	Arch Chemicals, Inc.
Basic Industries	Major Chemicals	CBT	Cabot Corporation
Basic Industries	Major Chemicals	WDFC	WD-40 Company
Basic Industries	Major Chemicals	POL	PolyOne Corporation
Basic Industries	Metal Fabrications	NPO	Enpro Industries
Basic Industries	Mining & Quarrying of Nonmetallic Minerals (No Fuels)	HL	Hecla Mining Company
Basic Industries	Paints/Coatings	RPM	RPM, Inc.
Basic Industries	Paper	MWV	Meadwestvaco Corporation
Basic Industries	Precious Metals	CLF	Cliffs Natural Resources Inc.
Basic Industries	Specialty Chemicals	CSL	Carlisle Companies Incorporated
Basic Industries	Steel/Iron Ore	GNA	Gerdau AmeriSteel
Basic Industries	Steel/Iron Ore	X	United States Steel Corporation
Basic Industries	Steel/Iron Ore	NUE	Nucor Corporation
Basic Industries	Telecommunications Equipment	FSIN	Fushi Copperweld, Inc.
Basic Industries	Telecommunications Equipment	GLW	Corning Incorporated
Basic Industries	Telecommunications Equipment	CCIX	Coleman Cable, Inc.
Capital Goods	Auto Manufacturing	WBC	Wabco Holdings Inc.
Capital Goods	Auto Manufacturing	F	Ford Motor Credit Company
Capital Goods	Auto Manufacturing	OSK	Oshkosh Truck Corporation
Capital Goods	Auto Manufacturing	PCAR	PACCAR Inc.
Capital Goods	Auto Parts:O.E.M.	TEN	Tenneco Automotive, Inc.
Capital Goods	Auto Parts:O.E.M.	FSYS	Fuel Systems Solutions, Inc.
Capital Goods	Auto Parts:O.E.M.	TRW	TRW Automotive Holdings Corporation
Capital Goods	Auto Parts:O.E.M.	CAAS	China Automotive Systems, Inc.
Capital Goods	Auto Parts:O.E.M.	SRI	Stoneridge, Inc.
Capital Goods	Auto Parts:O.E.M.	CAAS	China Automotive Systems, Inc.
Capital Goods	Auto Parts:O.E.M.	ARM	ArvinMeritor, Inc.
Capital Goods	Auto Parts:O.E.M.	BWA	BorgWarner Inc.
Capital Goods	Auto Parts:O.E.M.	MGA	Magna International, Inc.
Capital Goods	Biotechnology: Laboratory Analytical Instruments	BRKR	Bruker Corporation
Capital Goods	Biotechnology: Laboratory Analytical Instruments	AFFX	Affymetrix, Inc.
Capital Goods	Biotechnology: Laboratory Analytical Instruments	CALP	Caliper Life Sciences Inc
Capital Goods	Biotechnology: Laboratory Analytical Instruments	COHR	Coherent, Inc.
Capital Goods	Biotechnology: Laboratory Analytical Instruments	CPHD	CEPHEID
Capital Goods	Construction/Ag Equipment/Trucks	CNH	CNH Global N.V.
Capital Goods	Electrical Products	COHU	Cohu, Inc.
Capital Goods	Electrical Products	ENOC	EnerNOC, Inc.
Capital Goods	Electrical Products	ITRI	Itron, Inc.
Capital Goods	Electrical Products	COGO	Cogo Group, Inc.
Capital Goods	Fluid Controls	GGG	Graco Inc.
Capital Goods	Homebuilding	BZH	Beazer Homes USA, Inc.
Capital Goods	Homebuilding	DHI	D.R. Horton, Inc.
Capital Goods	Homebuilding	PHM	PulteGroup, Inc.
Capital Goods	Industrial Machinery/Components	MKSI	MKS Instruments, Inc.
Capital Goods	Industrial Machinery/Components	LII	Lennox International, Inc.
Capital Goods	Industrial Machinery/Components	RINO	RINO International Corporation
Capital Goods	Industrial Machinery/Components	KMT	Kennametal Inc.
Capital Goods	Industrial Machinery/Components	SSD	Simpson Manufacturing Company, Inc.
Capital Goods	Industrial Machinery/Components	CGNX	Cognex Corporation
Capital Goods	Industrial Machinery/Components	FARO	FARO Technologies, Inc.
Capital Goods	Industrial Machinery/Components	NANO	Nanometrics Incorporated
Capital Goods	Industrial Machinery/Components	BLT	Blount International, Inc.
Capital Goods	Industrial Machinery/Components	SQNM	Sequenom, Inc.
Capital Goods	Industrial Machinery/Components	OC	Owens Corning Inc
Capital Goods	Industrial Machinery/Components	ROK	Rockwell Automation Inc
Capital Goods	Industrial Specialties	FO	Fortune Brands, Inc.
Capital Goods	Industrial Specialties	PII	Polaris Industries Inc.
Capital Goods	Metal Fabrications	PH	Parker-Hannifin Corporation
Capital Goods	Metal Fabrications	RTI	RTI International Metals, Inc.
Capital Goods	Metal Fabrications	TKR	Timken Company (The)
Capital Goods	Military/Government/Technical	HWK	Hawk Corporation
Consumer Durables	Automotive Aftermarket	ABG	Asbury Automotive Group Inc
Consumer Durables	Automotive Aftermarket	KAR	KAR Auction Services, Inc
Consumer Durables	Automotive Aftermarket	CTB	Cooper Tire & Rubber Company
Consumer Durables	Automotive Aftermarket	LAD	Lithia Motors, Inc.
Consumer Durables	Automotive Aftermarket	KMX	CarMax Inc
Consumer Durables	Consumer Electronics/Appliances	IRBT	iRobot Corporation
Consumer Durables	Consumer Electronics/Appliances	WHR	Whirlpool Corporation
Consumer Durables	Containers/Packaging	INWK	InnerWorkings, Inc.
Consumer Durables	Containers/Packaging	AVY	Avery Dennison Corporation
Consumer Durables	Home Furnishings	LEG	Leggett & Platt, Incorporated
Consumer Durables	Home Furnishings	TPX	Tempur-pedic International Inc
Consumer Durables	Home Furnishings	IFSIA	Interface, Inc.
Consumer Durables	Industrial Specialties	AIT	Applied Industrial Technologies, Inc.
Consumer Durables	Industrial Specialties	SCHN	Schnitzer Steel Industries, Inc.
Consumer Durables	Major Pharmaceuticals	GERN	Geron Corporation
Consumer Durables	Major Pharmaceuticals	ARRY	Array BioPharma Inc.
Consumer Durables	Major Pharmaceuticals	MRX	Medicis Pharmaceutical Corporation
Consumer Durables	Major Pharmaceuticals	ELN	Elan Corporation, plc
Consumer Durables	Major Pharmaceuticals	AZN	Astrazeneca PLC
Consumer Durables	Major Pharmaceuticals	PPCO	Penwest Pharmaceuticals Co.
Consumer Durables	Major Pharmaceuticals	DEPO	DepoMed, Inc.
Consumer Durables	Major Pharmaceuticals	PRGO	Perrigo Company
Consumer Durables	Major Pharmaceuticals	BMRN	BioMarin Pharmaceutical Inc.
Consumer Durables	Major Pharmaceuticals	ARQL	ArQule, Inc.
Consumer Durables	Major Pharmaceuticals	CEPH	Cephalon, Inc.
Consumer Durables	Major Pharmaceuticals	QLTI	QLT Inc.
Consumer Durables	Major Pharmaceuticals	ISPH	Inspire Pharmaceuticals, Inc.
Consumer Durables	Major Pharmaceuticals	AUXL	Auxilium Pharmaceuticals, Inc.
Consumer Durables	Major Pharmaceuticals	ADLR	Adolor Corporation
Consumer Durables	Major Pharmaceuticals	HSP	Hospira Inc
Consumer Durables	Miscellaneous manufacturing industries	BTH	Blyth, Inc.
Consumer Durables	Specialty Chemicals	SVNT	Savient Pharmaceuticals Inc
Consumer Durables	Specialty Chemicals	USNA	USANA Health Sciences Inc.
Consumer Durables	Telecommunications Equipment	NVTL	Novatel Wireless, Inc.
Consumer Non-Durables	Apparel	CRI	Carter's, Inc.
Consumer Non-Durables	Apparel	UA	Under Armour, Inc.
Consumer Non-Durables	Apparel	VFC	V.F. Corporation
Consumer Non-Durables	Apparel	COLM	Columbia Sportswear Company
Consumer Non-Durables	Apparel	VLCM	Volcom, Inc.
Consumer Non-Durables	Apparel	LULU	lululemon athletica inc.
Consumer Non-Durables	Apparel	GIII	G-III Apparel Group, LTD.
Consumer Non-Durables	Beverages (Production/Distribution)	SAM	Boston Beer Company, Inc. (The)
Consumer Non-Durables	Electronic Components	TEL	Tyco Electronics Ltd.
Consumer Non-Durables	Electronic Components	CELL	Brightpoint, Inc.
Consumer Non-Durables	Electronic Components	AVT	Avnet, Inc.
Consumer Non-Durables	Electronic Components	ARW	Arrow Electronics, Inc.
Consumer Non-Durables	Farming/Seeds/Milling	LO	Lorillard, Inc
Consumer Non-Durables	Package Goods/Cosmetics	RDEN	Elizabeth Arden, Inc.
Consumer Non-Durables	Packaged Foods	MED	MEDIFAST INC
Consumer Non-Durables	Packaged Foods	CPO	Corn Products International, Inc.
Consumer Non-Durables	Packaged Foods	SMBL	Smart Balance Inc
Consumer Non-Durables	Plastic Products	NWL	Newell Rubbermaid Inc.
Consumer Non-Durables	Plastic Products	TUP	Tupperware Corporation
Consumer Non-Durables	Plastic Products	ENTG	Entegris, Inc.
Consumer Non-Durables	Recreational Products/Toys	HAS	Hasbro, Inc.
Consumer Non-Durables	Recreational Products/Toys	MAT	Mattel, Inc.
Consumer Non-Durables	Shoe Manufacturing	CROX	Crocs, Inc.
Consumer Non-Durables	Shoe Manufacturing	RCKY	Rocky Brands, Inc.
Consumer Non-Durables	Shoe Manufacturing	DECK	Deckers Outdoor Corporation
Consumer Non-Durables	Shoe Manufacturing	TBL	Timberland Company (The)
Consumer Non-Durables	Shoe Manufacturing	KCP	Kenneth Cole Productions, Inc.
Consumer Non-Durables	Shoe Manufacturing	SHOO	Steven Madden, Ltd.
Consumer Non-Durables	Specialty Foods	HSY	Hershey Foods Corporation
Consumer Services	Books	MHP	McGraw-Hill Companies, Inc. (The)
Consumer Services	Broadcasting	BLC	Belo Corporation
Consumer Services	Broadcasting	SIRI	Sirius XM Radio Inc.
Consumer Services	Broadcasting	ETM	Entercom Communications Corporation
Consumer Services	Catalog/Specialty Distribution	STMP	Stamps.com Inc.
Consumer Services	Catalog/Specialty Distribution	OSTK	Overstock.com, Inc.
Consumer Services	Catalog/Specialty Distribution	NSIT	Insight Enterprises, Inc.
Consumer Services	Catalog/Specialty Distribution	GSIC	GSI Commerce, Inc.
Consumer Services	Catalog/Specialty Distribution	PCCC	PC Connection, Inc.
Consumer Services	Clothing/Shoe/Accessory Stores	FINL	The Finish Line, Inc.
Consumer Services	Clothing/Shoe/Accessory Stores	HBI	Hanesbrands Inc.
Consumer Services	Consumer: Greeting Cards	AM	American Greetings Corporation
Consumer Services	Department/Specialty Retail Stores	TUES	Tuesday Morning Corp.
Consumer Services	Farming/Seeds/Milling	ANDE	The Andersons, Inc.
Consumer Services	Hotels/Resorts	LVS	Las Vegas Sands Corp.
Consumer Services	Hotels/Resorts	MPEL	Melco Crown Entertainment Limited
Consumer Services	Marine Transportation	RCL	Royal Caribbean Cruises Ltd.
Consumer Services	Military/Government/Technical	APWR	A-Power Energy Generation Systems, Ltd.
Consumer Services	Motor Vehicles	LKQX	LKQ Corporation
Consumer Services	Motor Vehicles	MDS	Midas, Inc.
Consumer Services	Movies/Entertainment	TWX	Time Warner Inc.
Consumer Services	Movies/Entertainment	CNK	Cinemark Holdings Inc
Consumer Services	Newspapers/Magazines	MSO	Martha Stewart Living Omnimedia, Inc.
Consumer Services	Other Consumer Services	UTI	Universal Technical Institute Inc
Consumer Services	Other Consumer Services	CSTR	Coinstar, Inc.
Consumer Services	Other Consumer Services	KNOT	The Knot, Inc.
Consumer Services	Other Consumer Services	LOPE	Grand Canyon Education, Inc.
Consumer Services	Other Consumer Services	LINC	Lincoln Educational Services Corporation
Consumer Services	Other Specialty Stores	HVT	Haverty Furniture Companies, Inc.
Consumer Services	Other Specialty Stores	CAB	Cabela's Inc
Consumer Services	Other Specialty Stores	PRTS	U.S. Auto Parts Network, Inc.
Consumer Services	Paper	OMX	Officemax Incorporated
Consumer Services	Real Estate Investment Trusts	RYN	Rayonier Inc. REIT
Consumer Services	Recreational Products/Toys	BBW	Build-A-Bear Workshop, Inc.
Consumer Services	Rental/Leasing Companies	HTZ	Hertz Global Holdings, Inc
Consumer Services	Restaurants	CMG	Chipotle Mexican Grill, Inc.
Consumer Services	Restaurants	MRT	Morton's Restaurant Group, Inc.
Consumer Services	Restaurants	KONA	Kona Grill, Inc.
Consumer Services	Services-Misc. Amusement & Recreation	DVD	Dover Downs Entertainment, Inc.
Consumer Services	Services-Misc. Amusement & Recreation	FUN	Cedar Fair, L.P.
Consumer Services	Services-Misc. Amusement & Recreation	PNK	Pinnacle Entertainment, Inc.
Consumer Services	Services-Misc. Amusement & Recreation	WYNN	Wynn Resorts, Limited
Consumer Services	Services-Misc. Amusement & Recreation	MCRI	Monarch Casino & Resort, Inc.
Consumer Services	Telecommunications Equipment	AMT	American Tower Corporation
Consumer Services	Telecommunications Equipment	DTV	DIRECTV
Energy	Industrial Machinery/Components	BGG	Briggs & Stratton Corporation
Energy	Industrial Machinery/Components	CMI	Cummins Inc.
Energy	Industrial Machinery/Components	GTI	GrafTech International Ltd
Energy	Industrial Machinery/Components	BC	Brunswick Corporation
Energy	Industrial Machinery/Components	MXWL	Maxwell Technologies, Inc.
Energy	Integrated oil Companies	HES	Hess Corporation
Energy	Integrated oil Companies	MRO	Marathon Oil Corporation
Energy	Oil & Gas Production	CXG	CNX Gas Corporation
Energy	Oil & Gas Production	WTI	W&T Offshore, Inc.
Energy	Oil & Gas Production	SM	St. Mary Land
Energy	Oil & Gas Production	BEXP	Brigham Exploration Company
Energy	Oil & Gas Production	CLR	Continental Resources, Inc.
Energy	Oil & Gas Production	DVN	Devon Energy Corporation
Energy	Oil & Gas Production	CRK	Comstock Resources, Inc.
Energy	Oil & Gas Production	CWEI	Clayton Williams Energy, Inc.
Energy	Oil & Gas Production	APC	Anadarko Petroleum Corporation
Energy	Oil & Gas Production	CXO	Concho Resources Inc.
Energy	Oilfield Services/Equipment	RES	RPC, Inc.
Energy	Oilfield Services/Equipment	SWSI	Superior Well Services, Inc.
Finance	Investment Bankers/Brokers/Service	MS	Morgan Stanley
Finance	Investment Bankers/Brokers/Service	BGCP	BGC Partners, Inc.
Finance	Investment Bankers/Brokers/Service	JMP	JMP Group Inc
Finance	Investment Bankers/Brokers/Service	KBW	KBW Inc
Finance	Investment Bankers/Brokers/Service	GS	Goldman Sachs Group, Inc. (The)
Finance	Investment Managers	BX	The Blackstone Group L.P.
Finance	Investment Managers	AB	Alliance Capital Management Holding L.P.
Finance	Investment Managers	LAZ	Lazard LTD.
Finance	Major Banks	SBCF	Seacoast Banking Corporation of Florida
Finance	Major Banks	COF	Capital One Financial Corporation
Finance	Major Banks	TCB	TCF Financial Corporation
Finance	Property-Casualty Insurers	HMN	Horace Mann Educators Corporation
Finance	Property-Casualty Insurers	STFC	State Auto Financial Corporation
Finance	Property-Casualty Insurers	SIGI	Selective Insurance Group, Inc.
Finance	Property-Casualty Insurers	MRH	Montpelier RE Holdings Ltd
Finance	Property-Casualty Insurers	RNR	RenaissanceRe Holdings Ltd.
Finance	Real Estate	JLL	Jones Lang LaSalle Incorporated
Finance	Savings Institutions	ETFC	E*TRADE Financial Corporation
Health Care	Biotechnology: Biological Products (No Diagnostic Substances)	BCRX	BioCryst Pharmaceuticals, Inc.
Health Care	Biotechnology: Biological Products (No Diagnostic Substances)	CYPB	Cypress Bioscience, Inc.
Health Care	Biotechnology: Biological Products (No Diagnostic Substances)	NPSP	NPS Pharmaceuticals, Inc.
Health Care	Biotechnology: Biological Products (No Diagnostic Substances)	NBIX	Neurocrine Biosciences, Inc.
Health Care	Biotechnology: Biological Products (No Diagnostic Substances)	ZGEN	ZymoGenetics, Inc.
Health Care	Biotechnology: Biological Products (No Diagnostic Substances)	ACOR	Acorda Therapeutics, Inc.
Health Care	Biotechnology: Commercial Physical & Biological Resarch	INCY	Incyte Corporation
Health Care	Biotechnology: Electromedical & Electrotherapeutic Apparatus	ZOLL	Zoll Medical Corporation
Health Care	Biotechnology: Electromedical & Electrotherapeutic Apparatus	THOR	Thoratec Corporation
Health Care	Biotechnology: Electromedical & Electrotherapeutic Apparatus	SPNC	The Spectranetics Corporation
Health Care	Biotechnology: In Vitro & In Vivo Diagnostic Substances	OSIP	OSI Pharmaceuticals Inc.
Health Care	Hospital/Nursing Management	THC	Tenet Healthcare Corporation
Health Care	Hospital/Nursing Management	RHB	Rehabcare Group, Inc.
Health Care	Hospital/Nursing Management	FVE	Five Star Quality Care, Inc.
Health Care	Hospital/Nursing Management	ODSY	Odyssey Healthcare, Inc.
Health Care	Industrial Specialties	ALGN	Align Technology, Inc.
Health Care	Industrial Specialties	IVC	Invacare Corporation
Health Care	Medical Specialities	HUM	Humana Inc.
Health Care	Medical Specialities	UAM	Universal American Financial Corp.
Health Care	Medical Specialities	HS	Healthspring, Inc.
Health Care	Medical Specialities	MWIV	MWI Veterinary Supply, Inc.
Health Care	Medical Specialities	UNH	UnitedHealth Group Incorporated
Health Care	Medical/Dental Instruments	MMM	3M Company
Health Care	Medical/Dental Instruments	OFIX	Orthofix International N.V.
Health Care	Medical/Dental Instruments	PODD	Insulet Corporation
Health Care	Medical/Dental Instruments	VITA	Orthovita, Inc.
Health Care	Medical/Dental Instruments	EVVV	ev3 Inc.
Health Care	Medical/Nursing Services	PRSC	The Providence Service Corporation
Health Care	Other Pharmaceuticals	HLF	Herbalife LTD.
Miscellaneous	Business Services	CATM	Cardtronics, Inc.
Miscellaneous	Business Services	LOCM	Local.com Corporation
Miscellaneous	Business Services	EXLS	ExlService Holdings, Inc.
Miscellaneous	Business Services	BID	Sotheby's Holdings, Inc.
Miscellaneous	Business Services	DGIT	DG FastChannel, Inc.
Miscellaneous	Business Services	SNWL	SonicWALL, Inc.
Miscellaneous	Business Services	LLNW	Limelight Networks, Inc.
Miscellaneous	Multi-Sector Companies	SRSL	SRS Labs, Inc.
Miscellaneous	Other Consumer Services	SFLY	Shutterfly, Inc.
Public Utilities	Electric Utilities: Central	SO	Southern Company (The)
Public Utilities	Electric Utilities: Central	PNW	Pinnacle West Capital Corporation
Public Utilities	Electric Utilities: Central	GXP	Great Plains Energy Inc
Public Utilities	Environmental Services	WSII	Waste Services, Inc.
Public Utilities	Power Generation	WR	Westar Energy, Inc.
Public Utilities	Telecommunications Equipment	NTGR	NETGEAR, Inc.
Public Utilities	Telecommunications Equipment	AUDC	AudioCodes Ltd.
Public Utilities	Telecommunications Equipment	PLT	Plantronics, Inc.
Public Utilities	Telecommunications Equipment	INFN	Infinera Corporation
Public Utilities	Telecommunications Equipment	IKAN	Ikanos Communications, Inc.
Public Utilities	Telecommunications Equipment	TLAB	Tellabs, Inc.
Technology	Advertising	IPG	Interpublic Group of Companies, Inc. (The)
Technology	Computer Communications Equipment	APKT	Acme Packet, Inc.
Technology	Computer Communications Equipment	EXTR	Extreme Networks, Inc.
Technology	Computer Communications Equipment	ELX	Emulex Corporation
Technology	Computer Communications Equipment	EFII	Electronics for Imaging, Inc.
Technology	Computer Manufacturing	AAPL	Apple Inc.
Technology	Computer Manufacturing	TDC	Teradata Corporation
Technology	Computer Manufacturing	LXK	Lexmark International, Inc.
Technology	Computer peripheral equipment	XRX	Xerox Corporation
Technology	Computer peripheral equipment	LOGI	Logitech International S.A.
Technology	Computer Software: Prepackaged Software	GUID	Guidance Software, Inc.
Technology	Computer Software: Prepackaged Software	CCOI	Cogent Communications Group, Inc.
Technology	Computer Software: Prepackaged Software	MANH	Manhattan Associates, Inc.
Technology	Computer Software: Prepackaged Software	NENG	Network Engines, Inc
Technology	Computer Software: Prepackaged Software	CDNS	Cadence Design Systems, Inc.
Technology	Computer Software: Prepackaged Software	THQI	THQ Inc.
Technology	Computer Software: Prepackaged Software	UNCA	Unica Corporation
Technology	Computer Software: Prepackaged Software	SMSI	Smith Micro Software, Inc.
Technology	Computer Software: Prepackaged Software	TIBX	TIBCO Software, Inc.
Technology	Computer Software: Prepackaged Software	RST	Rosetta Stone
Technology	Computer Software: Programming, Data Processing	BIDU	Baidu, Inc.
Technology	EDP Services	DIVX	DivX, Inc.
Technology	EDP Services	DST	DST Systems, Inc.
Technology	EDP Services	PTI	Patni Computer Systems Limited
Technology	EDP Services	TZOO	Travelzoo Inc
Technology	EDP Services	YHOO	Yahoo! Inc.
Technology	Electronic Components	PAR	3PAR Inc
Technology	Electronic Components	XRTX	Xyratex Ltd.
Technology	Electronic Components	SNDK	SanDisk Corporation
Technology	Industrial Machinery/Components	IVAC	Intevac, Inc.
Technology	Industrial Machinery/Components	BTUI	BTU International, Inc.
Technology	Industrial Machinery/Components	UTEK	Ultratech, Inc.
Technology	Industrial Machinery/Components	ZBRA	Zebra Technologies Corporation
Technology	Industrial Machinery/Components	DOV	Dover Corporation
Technology	Industrial Machinery/Components	VSEA	Varian Semiconductor Equipment Associates, Inc.
Technology	Industrial Machinery/Components	ETN	Eaton Corporation
Technology	Professional Services	TBI	Trueblue Inc
Technology	Professional Services	SFN	SFN Group, Inc
Technology	Radio And Television Broadcasting And Communications Equipment	ARRS	Arris Group Inc
Technology	Radio And Television Broadcasting And Communications Equipment	CRNT	Ceragon Networks Ltd.
Technology	Radio And Television Broadcasting And Communications Equipment	KVHI	KVH Industries, Inc.
Technology	Semiconductors	AMCC	Applied Micro Circuits Corporation
Technology	Semiconductors	MCRL	Micrel, Incorporated
Technology	Semiconductors	MSPD	Mindspeed Technologies, Inc.
Technology	Semiconductors	OIIM	O2Micro International Limited
Technology	Semiconductors	PLXT	PLX Technology, Inc.
Technology	Semiconductors	PSEM	Pericom Semiconductor Corporation
Technology	Semiconductors	RBCN	Rubicon Technology, Inc.
Technology	Semiconductors	ATML	Atmel Corporation
Technology	Semiconductors	RFMD	RF Micro Devices, Inc.
Technology	Semiconductors	MLNX	Mellanox Technologies, Ltd.
Technology	Semiconductors	RMBS	Rambus, Inc.
Technology	Semiconductors	ALTR	Altera Corporation
Technology	Semiconductors	SIMO	Silicon Motion Technology Corporation
Technology	Semiconductors	SMSC	Standard Microsystems Corporation
Technology	Semiconductors	VIRL	Virage Logic Corporation
Technology	Semiconductors	VLTR	Volterra Semiconductor Corporation
Technology	Semiconductors	AATI	Advanced Analogic Technologies, Inc.
Technology	Semiconductors	ANAD	ANADIGICS, Inc.
Technology	Semiconductors	FORM	FormFactor, Inc.
Technology	Semiconductors	CAVM	Cavium Networks, Inc.
Technology	Semiconductors	CSUN	China Sunergy Co., Ltd.
Technology	Semiconductors	CY	Cypress Semiconductor Corporation
Technology	Semiconductors	DIOD	Diodes Incorporated
Technology	Semiconductors	MU	Micron Technology, Inc.
Technology	Semiconductors	ENTR	Entropic Communications, Inc.
Technology	Semiconductors	LSCC	Lattice Semiconductor Corporation
Technology	Semiconductors	IPGP	IPG Photonics Corporation
Technology	Semiconductors	IRF	International Rectifier Corporation
Technology	Semiconductors	AUO	AU Optronics Corp
Technology	Semiconductors	ZRAN	Zoran Corporation
Technology	Semiconductors	AXTI	AXT Inc
Technology	Semiconductors	DSPG	DSP Group, Inc.
Technology	Semiconductors	LLTC	Linear Technology Corporation
Transportation	Air Freight/Delivery Services	CAL	Continental Airlines, Inc.
Transportation	Air Freight/Delivery Services	LCC	US Airways Group, Inc. New
Transportation	Air Freight/Delivery Services	DAL	Delta Air Lines Inc. (New)
Transportation	Air Freight/Delivery Services	UAUA	UAL Corporation
Transportation	Oil Refining/Marketing	PACR	Pacer International, Inc.
Transportation	Oil Refining/Marketing	VTNC	Vitran Corporation, Inc.
Transportation	Railroads	KSU	Kansas City Southern
Transportation	Trucking Freight/Courier Services	CNW	CNF, Inc.
Transportation	Trucking Freight/Courier Services	UPS	United Parcel Service, Inc.
Transportation	Trucking Freight/Courier Services	SAIA	Saia, Inc.
Transportation	Trucking Freight/Courier Services	ODFL	Old Dominion Freight Line, Inc.
Transportation	Trucking Freight/Courier Services	QLTY	Quality Distribution, Inc.
Transportation	Trucking Freight/Courier Services	CVTI	Covenant Transportation Group, Inc.

Out of all the stocks that have reported so far, and we are over 80% complete in this quarter's earnings season, only 353 stocks have done well enough to make it on to this list.

If you are interested in looking for investment ideas among those stocks showing earnings and revenue momentum, this list is a good place to start. And with the market sliding lately, I suspect you can pick up some great stocks for much cheaper prices.