Assessing Overall Strength
As
of Wednesday’s close, the market is attempting another rally.Â
Admittedly, the hopes are slightly dim because of the lack of volume
and lack of setups I see out there right now.Â
Nonetheless, we
will be vigilant in following the rally to its conclusion.
On the upside, we’ll be looking for a gain of at least 2% on heavier
trade than the previous day beginning on Monday.
On the downside, we’ll be looking to see if the market takes out the
lows of this attempted rally.
Lows not to
violate:
 
If this rally were
to follow through, the following groups are best poised to lead us higher:
Commercial Services-Schools, select Medicals, Retail/wholesale auto parts,
select Leisure-related companies.Â
Education
Management
(
EDMC |
Quote |
Chart |
News |
PowerRating) broke through its pivot of 43.62 on
Wednesday. Volume came in about 50%
above-average. Today the stock is
trying to follow up on the move, but showing a little hesitation.
Â
Int’l
Game Tech
(
IGT |
Quote |
Chart |
News |
PowerRating) is attempting a move through its pivot of 68.60
on fairly heavy trade. This stock
comes from the leisure group and has been in a steady uptrend towards its high
of 71.95.
Even though the
market itself has not given the “all-clear†sign to purchase stocks, these
and other breakouts can be used to assess the overall strength of growth
stocks. By eyeing a few stocks, things
do appear to have potential. Whether or
not it will be short-lived lies within the market’s ability to either
confirm or deny the current rally attempt.
A few other stocks I am keeping an eye on are: Career
Education Corp.
(
CECO |
Quote |
Chart |
News |
PowerRating)
 
Â
Deluxe
Corp.
(
DLX |
Quote |
Chart |
News |
PowerRating)
Â
Harrah’s
Entertainment
(
HET |
Quote |
Chart |
News |
PowerRating)
Â
This weekend will
provide a good opportunity to peruse tons of charts and search for other
set-ups. If the market does
confirm this newest rally, it’ll be important to have list of trades ready.
Enjoy a productive
weekend,