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Five Themes for 2010 Update


Which stocks have fallen off and which are okay and will outperform?


Editor's Note: The following was posted in real time on our premium Buzz & Banter (click for a free trial).

Back on January 8, in Five Themes for 2010, I ran through a list of stocks that at the time were showing market separation on long-term charts. That is, they didn't have qualified downside breaks of long-term DeMark TDST Down levels and their counts weren't moving in unison with the broad market or most economic sectors.

Now that we have some worrisome alignment across multiple time frames for the broad market, I wanted to update this list. As of now, only one stock on the list has fallen off, Tetra Tech (TTEK), which went on to fall apart shortly after I bought it... naturally. It's down 23% since January 8. It also looks like a short here with a qualified TDST Down break at 21.24 and bearish price flip this week.

The rest of the list remains technically "okay" via DeMark, with the exceptions noted below, so while I expect these stocks to come in if the broad market does as a whole, I also expect the majority of them to outperform on a relative basis on the downside as well.

Below are the others, DeMark technical comments, and their returns since January 8 close.

  • Corn Products Intl. (CPO) 26.2%: Monthly okay, TD Propulsion target on monthly is 36.99, currently on TD Sequential 12 of possible 13 on weekly.

  • Del Monte Foods (DLM) 21.3%: Monthly shows qualified break of TDST Up level and no exhaustion. Weekly TD Sequential 13 sell signal this week. Expectations are for this stock to come in to support levels over next few weeks to possibly 12.68, then 12.35 while remaining long-term technically sound.

  • Cal-Maine Foods (CALM) -0.1%: Monthly technically sound, TD Propulsion Up target 38.63. Weekly qualified break of TDST Up level and no signs of exhaustion.

  • J&J Snack Foods (JJSF) 16.3%: Monthly qualified break of TDST Up level remains intact. No signs of exhaustion. Weekly could potentially qualify break of TDST Up level resistance with a close above 44 this week and if open restriction is met next week.

  • Quest Diagnostics (DGX) -5.4%: Potential bearish price flips on both weekly and monthly. Could qualify TD Propulsion Down Momentum with close below 56.32 and open restriction next month. Target on downside would be 49.81 in that case. Shaky.

  • Badger Meter (BMI) -3%: Monthly fine. Weekly on bar 12 this week of potential TD Sequential sell signal. Support 33.61.

  • Cogent (COGT) -0.3%: Monthly fine. Weekly fine as well. Potential bullish price flip this week and qualified TDST Up level break remains intact.

  • Owens & Minor (OMI) 5.8%: TD Sequential sell signal two weeks ago and potential bearish price flip this week. Looking to sell this position.

  • Ford (F) 12.4%: Still looks okay monthly and weekly. Target on upside is TD Propulsion Exhaustion level at 14.96.
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