Ask Vendit Off Topic Questions

[Walkingshadow]

Hi freeus,

RE SKX, CP, AREM, SCOT, DFXI, and SFA.

The last month and a half has seen a dramatic increase in SKX's volume---3 month average daily volume only about 290,000 but 10 day average daily volume 737,000. For whatever reason, SKX seems to be in the hands of momentum players. It is in a strong uptrend now, but technicals are weakening markedly:

http://www.askresearch.com/cgi-bin/chart?symbol=skx&exchange=USA&size=800x600&months=6+m...

I would not buy it now partly for that reason, but also partly because I'm bothered by what looks to be the beginnings of a topping formation. Note that the most recent peak really didn't convincingly take out the previous peak. The hourly chart looks somewhat more hopeful, and shows a test of support at the rising 200 min ema is imminent. Resistance is at 31.

http://www.askresearch.com/cgi-bin/intraday?index=%24COMPX&intraday=symbol&symbol=SKX&ex...

CP is similar, in that there has been a sudden surge of interest in the stock recently, but before that it was comparatively thinly traded. It has also gotten ahead of itself, and shows signs of running out of technical steam. It looks a little better in that regard than SKX. I don't like the way the short term moving averages have exploded, which is very uncharacteristic for this stock.

http://www.askresearch.com/cgi-bin/chart?symbol=cp&exchange=USA&size=800x600&months=6+mo...


Hourly chart continues to look strong, but I'd say a cosolidation/correction is likely here. A stock like this doesn't go through an explosive growth period without some digestion periodically.

AREM has been trading in a nice, orderly sawtooth uptrend for some time now. Currently, it is getting a bit overbought, and shows signs of technical slowing---OBV, Williams, and PROC all showing early sell signals, but not confirmed with stochastics yet. If it were me, I'd watch this one very carefully. It could well test overhead at 28, then correct. At that point, I'd be lying in wait for a short-term reversal from oversold conditions at previous support levels or thereabouts. If it fails to rise to test overhead, that could well be the start of a topping formation and reversal to the downside. If so, it might well make a good short.

http://www.askresearch.com/cgi-bin/chart?symbol=AREM&exchange=USA&size=800x600&months=6+...


SCOT is in an upside breakout, at a 52-week high. Technicals look good, but a bit overbought. SCOT looks fairly strong still, but daily volume is small, so I'm hesitant to ascribe much validity to TA here:

http://www.askresearch.com/cgi-bin/chart?symbol=SCOT&exchange=USA&size=800x600&months=6+...




DFXI continues in an uptrend, and has corrected back to a support area formed by the rising long-term moving averages:

http://www.askresearch.com/cgi-bin/chart?symbol=DFXI&exchange=USA&size=800x600&months=6+...

There are no technical buy signals yet, but this one should also be watched closely, since it is becoming rather oversold. However, like SCOT, DFXI trades light volume, so using TA here is dubious.

SFA looks to be a good short at the moment. There are technical sell signals present, and SFA is encountering resistance at the area of the downsloping long-term moving averages. SFA has reliably failed at this approximate level several previous times.

http://www.askresearch.com/cgi-bin/chart?symbol=sfa&exchange=USA&size=800x600&months=6+m...

Hope this helps. JMVHO....

WS