Two Ways To Put Money To Work In This Market
The Nasdaq doesn’t seem to be in the best of shape
right now as we have been hit with two blatant
distribution days on 4/13 and today.
Normally, it takes 3-5 days
of professional selling to derail a rally, but this one has never really
started. We have literally made no progress since the market confirmed this
latest rally attempt on 3/29 and again on 4/2.
Leading stocks have been
giving back ground alongside the market, but nothing that has really warranted
extreme caution. Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating),
Research in Motion
(
RIMM |
Quote |
Chart |
News |
PowerRating),
Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) and
Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating) have all seen their declines or consolidations
come on lighter or below-average volume.
The
S&P 500 even managed to find support in today’s session as it
managed a positive close in the upper half of the day’s range on heavy trade.
^next^
There are two things one
could do looking to put money to work based on what we have seen.
-
Interest-rate fears seem to
have given cyclical stocks in the Dow and S&P the leadership reigns for
now. Trades in these arenas may be a little friendlier than tech-related
issues. -
Secondly, one could simply
sit on the sidelines and wait for a more clear opportunity to present
itself.
Have a Great Weekend!
timt@tradingmarkets.com