Anatomy of a Nasdaq 100 Scan

The stock markets ability to close higher last week has improved the weekly technical outlook but the volume is still not confirming the price action. Nevertheless, the short-term momentum is positive as we enter a two-week seasonal period where stocks are generally weak.

The PowerShares QQQ Trust (QQQ) is still a market leader as it is up over 18.2% YTD compared to just a 12.1% gain in the Spyder Trust (SPY). As I outlined in Fridays Week Ahead column Two Potential Stock Market Scenarios, there are two paths for the stock market that I think are the most likely for the next few weeks.

Whether the market sees a sharp setback or a period of sideways consolidation, there are some stocks that are just in the process of bottoming and are likely to diverge from the overall market. Therefore, I continue to run my regular weekly scans to find those stocks that look the most promising.

One of the scans focused on the Nasdaq 100 stocks as I first looked for those stocks where the OBV was above its WMA. For the Nasdaq 100, there were 58 stocks that met this criteria.

This group of stocks was then analyzed further to isolate those where the daily OBV has just moved above its WMA. These stocks had, therefore, just triggered a buy signal from Asprays OBV Trigger (AOT).

Only nine of the 58 stocks passed this test. I then examined these stocks basis their charts and relative performance analysis. Here are three that looked the most interesting.

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Chart Analysis: The PowerShares QQQ Trust (QQQ) closed last week at $103.21, which is just barely below the weekly starc+ band at $103.91.

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Anatomy of a Nasdaq 100 Scan