Thursday, August 11, 2011

Active Screen - CANSLIM: Top 8 for August 11th

Market selling shuffled the deck on top-8 qualifying stocks. Since the last update in July we have seen Cognizant Technology Solutions (CTSH) and Silver Wheaton Corporation (SLW) fall from the list and Priceline (PCLN) and FreeMcMoran (FCX) added, the latter making a return after its cut in May.

The CANSLIM stock screener settings employed were:

Top dog is still Apple (AAPL) and its market leading $338bn Market Cap. Shareholders have been reluctant to sell despite surrounding carnage. To the extent the stock only tested the February swing high at Monday's troubled close - a test which has so far held as support. However, a real bear market sinks all ships and while it may prove resistant to selling now, Apple is not immune too it. Apple does enjoy a thick band of support between $355 and $363. Should this give way, then the next area to watch for buying is $330.

Zignals Chart Image

Next on the list is Vale S.A. (VALE). The lack of buying interest around its 200-day MA quickly took its toll when sellers emerged in force. The stock cleanly sliced its 50-day MA, leaving it scrambling for support at the July reaction low. With a 'Death Cross' in play since May it's likely to encounter a glut of supply was it to challenge $30.

Zignals Chart Image

In third place is Baidu (BIDU). Like Apple it enjoys a well defined uptrend which has (so far) absorbed most of the selling thrown at it. June saw a successful test of its 200-day MA, and this swing low combined with the December low and April-July swing highs presents a solid bullish channel to guide traders. The presence of the 200-day MA nearby lends additional weight to channel support.

Zignals Chart Image

Fourth on the list is Barrick Gold (ABX). This is one of the few stocks to have changed little over the past couple of weeks. The stock remains stuck inside a broad $42-$55 range as it currently negotiates a flat-lined 200-day MA. A straightforward hold for now.

Zignals Chart Image

Next on the list is newly returned Free McMoran (FCX). However, it's return to the list may be brief. After a failed attempt to break from a consolidation in July it quickly undercut its 200-day MA and support of the prior consolidation. Next downside target is the September swing low at $33.

Zignals Chart Image

Priceline (PCLN) is the fresh face to the top-8. This is another steady performer along the lines of Baidu and Apple. Since the start of May its price has been 'coiling' in preperation of its next big move. This move should be higher based on the prior trend, but you wouldn't want to bank that in the current market environment. But a Zignals Stock Alert on a break of $550 will keep you informed when it does.

Zignals Chart Image

Netflix (NFLX) was one of the early channel breakers after its announced price hike. Therefore it's of no surprise it followed through to test its 200-day MA in the light of broader market action. Next question is whether it can bounce off it? So far, so good.

Zignals Chart Image

Finally, Agrium (AGU) has started to stir, although the omens are not good if you are bull. After a protracted sideways trading range dating back to last October, it rapidly sold off to $78 support. The Accumulation Swing Index shows a new low, which suggests $78 support won't hold for long. Next level of support is back at $50.

Zignals Chart Image


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