We will begin this week by highlighting how Top Equity News’ trading earnings pick ended the week. Genesco Inc. (GCO) beat earnings by 31 cents and increased its earnings guidance. As a result, shares jumped a symmetrical $3.03 on Friday. That closed out a weekly gain of 12% – not too bad. TEN certainly hopes you participated.
Looking forward to the week ahead, the S&P 500 wiggled out from under the resistance of the ascending right angle triangle TEN wrote about last week. While we are pleased to see the index attempt to breakout, Top Equity wants a close above 1390 on strong volume to confirm a jailbreak higher.
We are encouraged with the index’s 12, 26 and 50 day averages rising. Even the 200 day mark is showing signs of turning north after flat-lining for much of 2012.
But there is one thing that concerns us, declining volume.
The accompanying chart shows a lack of conviction from investors as stocks climb the mountainside. However, volume has been sloping downhill since late January. Usually, a technical breakout – like exiting a triangle- is accompanied by a big jump in volume.
The book is not closed; a spike in volume and a gain of more than 1% for the S&P would confirm last week’s pseudo-breakout. If stocks continue to meander higher as volume vanishes, Top Equity Stocks expects a correction soon.
Make sure you stay with us the rest of the week. We hope to identify more stocks and ideas like Genesco.
Stock Market Trends: Dude, Where’s the Volume? is an article from: 
