After YHOO’s Explosive Move, Watch These Internets

• April 8, 2004
• Tim Truebenbach

Thursday’s trading, although disappointing for the major
averages, did actually produce a positive
consolidation to add to the confirmed uptrend. Both the S&P 500
(
$SPX.X |
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(
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volume recede as prices managed to come off the lows by the close.  The S&P
500 found and held support at its 50-day moving average as well.

 

 

Yahoo!
(
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blew away earnings estimates. The stock saw its most explosive point move on
its largest volume since an October 2003 earnings report. 

 

 

Sina
(
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favorable earnings to move off the 200-day moving average and above its 50-day
moving average.  It would have been nice to see a little stronger volume as it
did this.

 

 

^next^

We are still seeing fresh
setups make fresh moves as Valueclick
(
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cleared the double-bottom base pivot point of 11.70 on above-average volume.

 

 

Breakouts have been frequent,
but are not at all a sure thing in this market.  The verdict is not yet in for
Sanderson Farms’
(
SAFM |
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4/4-5.

 

 

DJ Orthopedics
(
DJO |
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breakout that undercut its pivot point of 26.55 by 12% and is still trading
beneath it.  This company displays solid accumulation in the base and is only
really lacking powerful sales growth, as the current quarter came in at only
+17% instead of the minimum of  +25% I like to see.

 

 

The market still has
leadership, but the breakout game has become slightly tricky.  Obviously, a
strong set of rules can greatly improve success.  Additionally, it never hurts
to focus on strong market leaders that are under institutional accumulation
such as Yahoo, EBAY and Qualcomm
(
QCOM |
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PowerRating).

 

We are currently in a
confirmed uptrend in the market that usually offers the best odds in which to
purchase stocks.  Spend time homing in on your favorite names or sectors and
enjoy the long weekend!

 

Tim Truebenbach