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Tuesday Swing Signals, Trend Leaders, Trend Busters and Gaps for Dec 15, 2009

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:
  • 29 Swing Signals -- 20 BUY signals and 7 SELL Signals plus 1 Strong BUY and 1 Strong SELL.
  • 308 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have 115 stocks that are new additions to the list and 61 that fell off the previous list.
  • 61 Trend Busters of which 54 are BUY signals and 7 are SELL signals.
  • 162 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed. 84 are bearish gaps and 78 are bullish gaps.
The view from Alert HQ --

 Stocks couldn't repeat Monday's winning ways today but neither did they erase all the upward momentum. Tonight's Alert HQ signals are actually rather positive and I'm pretty encouraged by this.

The number of stocks on the Trend Leaders list has finally managed to sneak above 300. And an encouraging sign that the move is becoming more broad-based is shown by the number of sector ETFs that are on the list of stocks and ETFs that are new additions to the list today. For example, now showing strong up-trends we see VANGUARD NATURAL RESOURCES (VNR), VANGUARD UTILITIES ETF (VPU), RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF (RYH) and, surprisingly, the ISHARES DJ US REAL ESTATE (IYR). ETFs already on the list include ISHARES DJ SELECT DIVIDEND (DVY), CLAYMORE/NYSE ARCA AIRLINE ETF (FAA) and some other real estate ETFs. A level of 300, however, is far from an indicator of a frothy market so, in my opinion, the market could easily accommodate a move to the upside before being considered overbought.

The other lists are clearly showing a big bias toward BUY signals.  BUY signals outnumber SELL signals more than 2 to 1 on the Swing Signals list. The situation is even more bullish on the Trend Busters list which is running nearly 8 to 1 in favor BUY signals. And there sure seems to be a lot of energy companies on the list today.


So my interpretation is that stocks are stubbornly resisting the bears. As those Bollinger Bands narrow and the doomsayers predict soaring inflation and falling stocks, these signals suggest to me an upside breakout is likely.  Browse the Alert HQ lists for stocks and ETFs with potential to lead the next rally.

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.

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