Here’s Where I See Solid Leadership
The
market continues to show very solid strength as we power ahead in
the major averages. Today’s trading
saw another day of accumulation as prices rose accompanied by above-average
volume that exceeded Friday’s levels.
The Internet stocks continue
to show solid leadership. There
are a few other groups poking their heads up, but nothing has been as powerful
or consistent as the Internet stocks. Recent
evidence includes the solid action we have seen from Ebay, Yahoo! and Amazon.
Amazon
(
AMZN |
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Chart |
News |
PowerRating) was the most recent name to push through resistance today.
Ryland
(
RYL |
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PowerRating) is from the homebuilding group and has seen some life
lately. This stock pushed through
resistance of 59.04 on Friday and has held above this level ever since.
One thing I will say is that
when this market starts to show extraordinary strength such as we saw in
Tuesday’s trading, it may be time to hold caution for the short-term.
Buying stocks at the right time is not usually easy.
Right now, I am starting to think things have been too easy.
Amazon’s move was an example, followed closely by Ryland.
Both stocks had resistance points and went straight up through them.
Investors and traders alike could pay up and still find themselves at a
profitable position. I still think it
is best to purchase and hold leading stocks, but I am reminding that proper
money management, position size and knowing where an exit for a loss is
appropriate before taking a trade.
Macromedia
(
MACR |
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Chart |
News |
PowerRating) has bee attempting a breakout through 18.74.
The company has great earnings growth, but is lacking on the sales
growth.
Trimble
Navigation
(
TRMB |
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Chart |
News |
PowerRating) pushed through its pivot point of 25.42 on
above-average trade. The
company’s ROE is declining and raises a flag, but the price, volume and
earnings action is very solid.
Getty
Images
(
GYI |
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Chart |
News |
PowerRating) first broke out at 34.90, and moved through a
second pivot point at 37.50. I
can’t say this is one to write home about, but it has been making very slow
upward progress.
UT
Starcom
(
UTSI |
Quote |
Chart |
News |
PowerRating) recently filed to offer convertible bonds in a
new trend to hit Wall Street after seeing how it helped
Mandalay
Bay
save on interest. This company already
sports stellar growth rates and a solid ROE. UTSI
initially broke out through 24.10, and has since been climbing the right side
of its base. Keep an eye out for
it to form another handle before its high of 35.66.
Sorry for the missed column
last Thursday, but things were quite hectic and I forgot!
I’ll try and not let that
happen this week, and now that Marianne is back to remind me, there’s a good
chance I’ll be back again on Thursday.
Until then,