Puzzle Pieces Still Missing
The
market just can’t seem to pull it together.
We saw that huge rally day on Tuesday, only to be followed by
distribution in the Nasdaq yesterday. Most rallies fail once distribution
appears.
After going through
charts last weekend, I found a few solid setups.
Some of them decided to push through their pivot points before the market
received a confirmation that institutions were buying stocks again.
FTI Consulting
(
FCN |
Quote |
Chart |
News |
PowerRating)
tried to break through its pivot of 40.70, but is now trading below it.Â
Harrah’s
(
HET |
Quote |
Chart |
News |
PowerRating) is trying to break out despite the market’s pressure, but has not
had much success.
Mid
Atlantic Med
(
MME |
Quote |
Chart |
News |
PowerRating) and Regis Corp
(
RGIS |
Quote |
Chart |
News |
PowerRating) are two more stocks attempting breakouts in this rough environment.
No matter how tempting a setup may seem, it’s extremely important for all
of the pieces of the puzzle to be in place before
proceeding. Most of us are aware
of the recent example of what lack of discipline can do to a portfolio.
Of course I am referring to Waste Connections
(
WCNX |
Quote |
Chart |
News |
PowerRating).
Sometimes the market
is good for making money and other times, you just have to be patient, sit back
and wait. Rather than “forcing
profits” it is a much better idea to hang onto our capital.Â
At this point, a
rally is technically in effect until the lows have been taken out.
If the market does manage to produce a large gain on heavy trade
beginning tomorrow, then we can stalk new purchases.
Otherwise, it is a great idea to sit on the sidelines and wait it out.
As promised, if the
market does manage to pull a rabbit out of its hat, here are a few names that
may be worth following:Â
Have a relaxing
weekend!
Â