Coinstar Continues To Impress

I think it really speaks to the state of the market lately when I am excited after a slightly up day on light volume. Although it certainly was nice to see the leaders actually leading even though most of them had light volume as well.

I am once again impressed by the strength of CSTR. Last night it was down 5% in the after market. I believe it opened this morning somewhere around -3%. Then it ended up closing up a bit on volume. I was confused last night as to why they were taking such a hit for making an acquisition that should have positive long term results. Common sense really showed up when the stock rallied back during today’s session. CSTR has formed a very nice looking Cup With Handle pattern. My only concern is that much like ALGN did, CSTR might be ready to break out before the general market is prepared to support it. Once again, the charts will let us know.

I thought it was interesting that the MarketSmith pattern recognition is calling MNST a Cup With Handle pattern. It is using that huge up spike a few weeks ago on a false rumor to construct the left side and the retreat of the past few days to form the handle. I never would have thought to look at it that way on my own. Not sure if it gets more credit or less credit for being an unorthodox pattern, but it is something worth keeping an eye one. MNST has been one of the strongest, if not THE strongest stock in the entire market over the past few months.

I also thought it was interesting that the fertilizer industry is continuing to do well. CF had another big day. It is forming what could be a very nice Cup Pattern. At the same time, RNF is forming a very similar Cup Pattern. Again, the charts will tell us what to do.