::: Today’s Market Action :::
A somewhat surprising move to start the week following a week which saw the major indices trip up a bit. In what is typically bullish action, the market accentuated the positive today focusing on a drop in oil prices, M&A activity and an absense of market moving economic reports instead of the company specific Pfizer disaster. On the surface today’s action looked a bit more bullish than it actually was. Price movement was excellent and the S&P moved to a new multi year high, but volume levels did not indicate a big institutional buying today. Clearly, there remains some hesitation ahead of economic reports in the coming days.
::: Major Indices Performance – The Numbers :::
(Note: volume averages are based on the average over the past 50 days)
Data as of 4:00EST – End of Day Dec 4th 2006
Nasdaq: UP 1.46% today with volume 3% ABOVE average
Nasdaq ETF (QQQQ) UP 1.37%, volume 19% BELOW average
Dow: UP .74%, volume 13% ABOVE the average
Dow ETF (DIA): UP .61%, volume 19% BELOW the average
S&P ETF (SPY): UP .76%, volume 23% ABOVE the average
Russell Small Cap ETF (IWM): UP 1.98%, volume 14% ABOVE the average
::: SelflInvestors Leading Stocks :::
The Self Investors Leading Stocks Index is comprised of stocks in the Breakout Tracker, which is a database of the fastest growing companies near a breakout or having already broken out of a base. Leading stocks did quite well today in terms of price action, but like the overall market there wasn’t much volume behind the move.
Summary:
* Advancers led Decliners 354 to 53.
* Advancers were up an average of 2.31% today, with volume 4% BELOW average
* Decliners were down an average of 1.03% with volume 30% ABOVE average
* The total SI Leading Stocks Index was UP 1.88% today with volume 1% ABOVE the average
* Where’s the Money Flowing *
Many investing websites provide leading industries based on price performance alone. However, without accompanying volume levels, this can sometimes be misleading. The only way that I know of to gauge industry/sector strength WITH volume levels is through the analysis of ETF’s. A couple years ago this was not possible, but as more traders/investors use ETF’s they become a much better tool for guaging the health of the market and seeing where the money is flowing (or not flowing). Using the proprietary SelfInvestors Demand Indicator score which measures price and volume movements, I’m able to quickly see which sectors/industries are seeing the greatest inflows of cash. For a detailed look at how I go about gauging sector/industry strength please see the following post: http://investing.typepad.com/tradingstocks/2006/09/wheres_the_big_.html
* Current Leading Sectors/Industries (over last 30 trading days):
Home Construction, HomeBuilders, Real Estate, Gold, Consumer Services
* Current Lagging Sectors/Industries (over last 30 trading days):
Broadband
* Today’s Market Moving Industries/Sectors (UP):
Internet Infrastructure, Retail, Semis, Technology, Biotech
* Today’s Market Moving Industries/Sectors (DOWN):
Pharma and Oil
** Stocks **
The stocks section will be an area where I highlight one stock selected from a group of stocks moving up with volume well above average and most likely breaking out of a base or consolidation. Oil stocks have begun to breakout and one highly rated SelfInvestors oil play was one of them today. The company is Omni Energy Services (OMNI).
ABOUT: OMNI Energy Services Corp. (OMNI) is a service company that provides a range of onshore seismic drilling, operational support, permitting, and survey services, and dock-side and offshore hazardous and non-hazardous oilfield waste management. Environmental cleaning services are also offered, including tank and vessel cleaning and safe vessel entry, for oil and gas companies operating in the Gulf of Mexico. At December 31, 2005, OMNI operated in two business divisions: Seismic Drilling and Environmental Services. In November 2006, the Company completed the acquisition of Rig Tools, Inc.
FUNDAMENTALS: With the exception of a bad year in ’04 in which the company lost money, it’s a company that has posted excellent growth over the last several years. Both margins & ROE are excellent and continue to get even better. Management owns 40% of the company.
TECHNICAL: Other than the fact the base is too deep, it’s a very good looking chart. The stock broke out of a fairly long handle formation today with good volume and looks poised to tackle the highs of the left side of the cup around 12.
SELFINVESTORS RATING: With a total score of 50/60 (26/30 for fundamentals, 24/30 for technical), OMIN is in the upper echelon of SelfInvestors oil plays.