Two Stocks That Gave The Signal
After the Nasdaq appeared to put
in a short-term top on Monday, accompanied by heavy volume, we are
watching to see how it can act moving forward.
This is our leading index and it has performed flawlessly
up until this recent action. We have not seen enough to worry about and
Tuesday’s low-volume consolidation was a positive way to work off the
institutional selling we have seen.
The Internet stocks along with select medicals and homebuilders are still
providing the best names to invest in. After Ebay’s
recent rise, it is impressive to see it trade lower, only to finish in the
upper half of the day’s range.
Another example where a stock is being bought on declines
by institutional dollars was
Genprobe
(
GPRO |
Quote |
Chart |
News |
PowerRating). This company exhibits huge earnings
growth along with increasing sales. The stock trading towards the lower end
of a channel it has been running along, only to finish positive on the day.
The most recent stock to report solid numbers and move
through resistance was Verint
Systems
(
VRNT |
Quote |
Chart |
News |
PowerRating). Earnings came after Tuesday’s close and were
14 cents vs. 8 cents a year ago. That is a solid 75% increase when most great
stocks in history show at least a 20% increase before making large runs.
 
The evidence that the market has presented since mid-March says it is time to
buy stocks. The Bear Market is over and now is the time to invest.Â
Take time to seek out very solid companies with solid earnings and sales
performance. When they emerge from price consolidations, they can be
purchased. Amazon.com
(
AMZN |
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Chart |
News |
PowerRating) and
Yahoo!
(
YHOO |
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Chart |
News |
PowerRating) are two stocks that gave the signal. AMZN at 33.59…. YHOO at 26.35…
Just like many successful stocks, these two names are
both higher now, providing the ultimate confirmation of a proper purchase:
Profits!
Until Thursday,
Â