Jim Van Meerten's  Instablog

The Chart of the Day is The Phoenix Companies (PNX). It seems on the surface to have some pretty good technical indicators buy I want you to read them all so you can see when a stock seems just too good to be true.

It is a provider of wealth management products and services offered through a variety of select advisors and financial services firms to serve the accumulation, preservation and transfer needs of the affluent and high net worth market, businesses and institutions. The company refers to its products and services together as its wealth management solutions. The company offers a broad range of life insurance, variable annuity and investment management solutions through a variety of distributors.

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Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Barchart technical indicators:

• 100% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 20 new highs and up 51.07% in the last month
• Relative Strength Index 89.87%
• Barchart computes a technical support level at 38.32
• Recently traded at 40.79 with a 50 day moving average of 30.12

Fundamental factors:

• Market Cap - $236.58 million
• P/E 6.68
• Revenue predicted to decrease 18.50% this year and decline another 6.00% next year
• Earnings are estimated to shrink 212.20% this year but turn around and increase 214.60% next year and continue to increase by 15.00% annually for the next 5 years
• Wall Street analysts issued 1 hold and 1 sell report
• Financial Strength C

Summary: Although the stock is on the new high you have to look beyond the chart and look for red flags. The stock shot up by 51.07% in the last month and has a Relative Strength Index approaching 90%. Too much, too fast. No analysts have a buy recommendation and the Financial Strength in only a C. Revenue has a negative trend. I hope you look at all the signals and decide this stock just has too much risk and probably not enough upside potential. Always look at all the numbers before you buy.

I've gotten some questions about using the Barchart New High List to find Exchange Traded Funds (ETFs) that have as good a momentum as stocks. Today I used the ETF column in the New High List and then sorted them for frequency. Then I used to Flipchart feature to go through the sorted list to find charts I think reflect consistent momentum. The list includes China Technology ETF (CQQQ), S & P Technology North America IShares (IGM), Fidelity NASDAQ Composite Tracking ETF (ONEQ), KLDS 400 Social Index IShares (DSI) and Vanguard Growth ETF(VUG):

China Technology ETF (CQQQ)

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Barchart technical indicators:

• 88% Barchart technical buy signals
• Trend Spotter buy signal
• Above it's 20, 50 and 100 day moving averages
• 20 new highs and up 19.48% in the last month
• Relative Strength Index 84.70%
• Barchart computes a technical support level at 26.01
• Recently traded at 26.93 with a 50 day moving average of 23.61

S & P Technology North American IShares (IGM)

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Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 19 new highs and up 11.11% in the last month
• Relative Strength Index 74.73%
• Barchart computes a technical support level at 76.15
• Recently traded at 77.11 with a 50 day moving average of 72.72

Fidelity NASDAQ Composite Tracking ETF (ONEQ)

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• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 19 new highs and up 9.51% in the last month
• Relative Strength Index 76.00%
• Barchart computes a technical support level at 136.78
• Recently traded at 137.99 with a 50 day moving average of 129.72

KLDS 400 Social Index IShares (DSI)

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Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 19 new highs and up 7.45% in the last month
• Relative Strength Index 79.08%
• Barchart computes a technical support level at 61.85
• Recently traded at 62.33 with a 50 day moving average of 58.86

Vanguard Growth ETF (VUG)

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Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 18 new highs and up 7.76% in the last month
• Relative Strength Index 70.46%
• Barchart computes a technical support level at 81.65
• Recently traded at 82.26 with a 50 day moving average of 78.23

The Chart of the Day is Legg Mason (LM). Lately the stock has terrific momentum and was up in all of the last 20 trading sessions. The stock gained 47.89% in the last 12 months and still has a P/E below the market average. We found the stock by sorting the New High list for frequency.

It is a holding company which, through its subsidiaries, is principally engaged in providing asset management, securities brokerage,investment banking and related financial services to individuals,institutions, corporations and municipalities.

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Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Barchart technical indicators:

• 100% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 540 and 100 day moving averages
• 20 new highs and up 20.11% in the last month
• Relative Strength Index 81.01%
• Barchart computes a technical support level at 35.22
• Recently traded at 36.13 with a 50 day moving average of 31.88

Fundamental factors:

• Market Cap $4.66 billion
• P/E 13.52
• Dividend yield 1.25%
• Financial Strength B+
• Revenue predicted to increase 2.40% this year and another 4.10% next year
• Earnings estimated to grow 183.00% this year, an additional 15.50% next year and continue to compound at an annual rate of 16.67% for the next 5 years
• Wall Street analysts have issued 3 strong buy,7 hold and 4 sell recommendations

Hold unless the stock drops below its 50 day moving average.