Follow the Leaders

Watch the action among these leaders to truly gauge where the market is headed. Step back and view their long term charts so you don’t get caught up in the day to day MINOR movements!

Seriously, step back and throw the charts on the floor or hang them on a wall across the room and you will clearly see the trends. These stocks have been leading the market higher and will give the FIRST clues of a market looking to go lower! We did have our second major distribution day last Friday and fourth overall but these stocks will tell the ultimate story!

The major Superstars include AAPL, GOOG, PTR & MDR
The minor or more recent Superstars include BIDU, FSLR, GRMN, EDU and others on the blog. See my stocks category to find the leaders of 2007.










  1. Chris,

    I am also thinking about the same thing since Friday. Last week I was expecting Apple to do just what it did and kind of push the Market up.

    Although I still would like your thoughts on something. Given the current situation of the Market and so much pessimism waiting on sidelines, do you think leaders will be able to hold it up and prevent a 10% or higher correction in the next 2-3 weeks? Two of the major superstars (and they are in Technology, which is the superstar sector) have come out with the earnings. No more major good news from them for quite some time now.

    I am fairly confident about my trades among these ‘leaders’ but not so sure about my other trades which are doing very good.
    I am beginning to think that leaders will be able to hold their own when the correction comes but they won’t be able to prevent it. Like on Friday, Googa and Apple did not go down 3.5% like everyone else.
    To give you an idea, I am sitting on a very handsome gain on LULU. There has been no exit warnings according to my system, but still I sold half of my positions yesterday.
    I would love to read your thoughts on this. Will the leaders be able to prevent a correction or just save themselves?

  2. johannesmagnus says


    I read all your posts and you have one of the
    best sites in the field. Please keep up the great
    work. I think the leaders will lead, but I am
    not sure if the pack will follow. At present,
    there are so many variables at work (what’s new?
    you say), with high oil, weak dollar, sub-prime, China bubble, FOMC decisions, Silicon Valley start-ups once again getting frothy just like the late 90’s. Big Tech is definitely leading, and I
    am normally a glass half-full guy, but I think
    many folks just like to ignore the darker side and
    party on. That’s where I (we) need you to help
    us make sense of all the market forces that keep
    tugging us in all directions. I, for one, read
    you because I like to surround myself with smart
    people. Keep it going.

  3. Amazing action in one of those recent leaders today, BIDU. BIDU was all over the presses during the intraday reversal a couple weeks ago and it was down hard for a few days, but just this quickly it is back within a few points of another 52 week high.

  4. Chris,

    Based on all the pessimism and gloomy talk, I’m going to throw it out there that the market will continue higher (just an opinion, of course) based on the premise that the headlines are usually wrong when making predictions. Using the headlines as an indicator, I guess.


  5. Abhi,
    Do I think? I have no idea. So far, so good for the leaders so this leads me to believe that things can go higher. That is still the direction!

    I missed LULU as a big winner and never bought it or even covered it. Tighten your stop but don’t sell for the sake of selling because you “feel” the leaders may falter. Many people, including me sold stock over the summer because we “felt” the market would go lower. It did but only for a couple of weeks and then new highs were made.

    Trade the stock, not your thoughts of what may happen.

    Hope this helps,

  6. johannesmagnus,
    Thank you for the kind words!

    You may be right about the pack as some of them have faltered but much of my concentration has been with the leaders. My cash is with the leaders so I don’t follow the “pack” as much.

    Don’t worry so much about the macro factors such as oil, the dollar and China bubble, etc… Keep trading the charts and ignore all talking heads (especially the mainstream news).

  7. Darin,
    I couldn’t agree more and this market has faked me out more than one time when I thought it was going to correct. Remember, we are heading into a presidential year so the market historically stays up. I always ignore talking heads from the media!

    Just as Aaron says, the leaders start to fall but are right back near or at new highs within a week.

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