Markets finished off highs for the session with both the Nasdaq and S&P 500 lower after decent intra session gains. The Nasdaq was as high as .6% and the S&P 500 by .4% and CLOSED down by .1 and .2% respectively. Action such as todays must be construed as bearish, as bullish action takes on the look of beginning on their lows and going out on highs. Of course it is only one day and the trend remains intact. Groups I continue to monitor to keep an eye out for strengthening economic signs come from the homebuilder group. We know the pure play builders themselves have been appreciating, but it is good to make sure periphery plays are confirming the moves. There we can examine under followed names like and an LZB or USCR. LZB has been acting anything but lazy as it is on a current 5 week winning streak and has advanced 19 of the last 25 weeks. Today it completed a handle on a good looking cup base and look to enter through a 28.38 pivot point. Little known USCR is a concrete play which could tell us a bit about the direction of the economy. This name which traded as low as 1.90 the week ending 12/23/11 has made a significant comeback now trading in the mid 30’s. This week it is taking a hit, but the overall trend is higher as it has gained 8 of the last 9 weeks, with the vast majority of those weeks CLOSING in the upper half of their weekly ranges. Scour for names in the sector that are not closely watched and they can provide nice “shelter” in a portfolio.
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