Wednesday, December 12, 2012

Some interesting charts


A useful exercise for any technical analyst or asset manager is to peruse the list of actively traded NYSE stocks on a daily basis.  Looking through 100 or so charts a day will normally suffice to give you a good idea of what’s happening in the broad market.  A cursory examination of the daily charts is, in my experience, far superior to looking at the charts of the major indices like the S&P 500, Dow 30, etc.

My daily perusal of the NYSE stock list has taken me through the stocks beginning with the letters “H and “I” as of Wednesday.  Here are a few of the standouts that caught my attention from strictly a chart pattern perspective:

Huntington Ingalls Industries (HII, 42.07).  A strictly short-term speculative play, HII looks like it could carry as high as the 45.00 level or slightly higher.  There hasn’t been enough consolidation at the November-December base for a sustained rally, but immediate-term internal momentum on the NYSE could carry it higher in December.  HII may also play a game of “catch up” with the currently strong defense industry it trades within.


Hyatt Hotels (H, 37.08) looks like it’s ready to emerge from a near-term consolidation/basing pattern.  Watch for resistance between the 38.00-39.00 levels on any future rally attempt.


IHS Inc. (IHS, 95.07) is another stock looking to play catch-up with its publishing industry group leader.  IHS broke out decisively from a narrow, lateral consolidation pattern on Wednesday could rally up to gap resistance between the $100-$105 area.

ING Groep N.S. ADS (ING, 9.43) is one of the few momentum stocks on the NYSE right now.  Having just rallied to a fresh 9-month high, ING is in a technical position to move higher on any further broad market strength.  Volume for ING needs to pick up on the advances, however.

INVESCO Ltd. (IVZ, 25.41) appears to be on the way towards a test of its September high above the 26.00 level.  This asset manager stock is in a strong industry group and could continue feeding off sector strength.




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