Dash For Trash:

It is one thing when we hear a rising tide lifts all boats (stocks), but it is yet another when we see heavy laggards start to exhibit strong PRICE action. There is nothing wrong with being inclusive, but demand that each name deserves its lofty status. In my opinion when this occurs, it signifies frothy behavior, which could be a toppy or dangerous situation. Of course PRICE trumps all other indicators, combined in my book, so it would be prudent to wait for a negative catalyst, for me a bearish candlestick before one starts to short some of these weaklings. A good example of what I am talking about could be the action in KSS, up better than 20% this week alone already, yet is still 51% off most recent 52 week highs. FOSL is looking to put up back to back 30% plus WEEKLY gainers. PRTY has jumped 26% this week. Below is the chart of PLCE, which has been a serial under performer, but this chart looks like it may have made a positive trend change. It took its time grinding higher, and finally pushed above a stubborn area of resistance.

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