Wednesday, September 20, 2006

Stock Of The Day

My stock of the day, actually it should have been for yesterday, is Focus Media (FMCN).

The stock traded very "dry" yesterday, and did not succumb to the overall weakness in the markets. It closed at the highs for the day. In addition, volume levels rose substantially.

I am hearing that the selling from private equity firms is drying up. The money flow indicator on the chart above would seem to confirm this.

The stock is just peaking above its overhead 50-day. Recapturing this level would be a bullish sign, and would be the first step in the stock working its way back to previous highs.

long FMCN


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