Yahoo! Continues To Act Well
We are currently in a market that has handed down ample
evidence that it wants to go higher, although
it threw a curve ball in the distribution it traded with today.
 
The market was firing on all cylinders
with declines coming on lighter volume after the heavy volume rallies we have
seen. Growth stocks have been making strong progress and displaying leadership
that the market has lacked for some time. Today we saw an example of what has
plagued this market for the past 9 months: distribution on above-average
volume. The Nasdaq is currently still healthy and above its 50-day moving
average. This index has provided much of the leadership because growth stocks
are typically traded here.Â
^next^
Yahoo! continues to act well and is one of
the growth names I am referring to. Volume continues to contract as the stock
retraces some of its recent move.
 
 Research in
Motion
(
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PowerRating), another market leader, has also
acted well into this pullback.Â
 
Lesser-known growth companies have had
a bit of struggle when the market starts to chop around. Abaxis
(
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PowerRating) for example, attempted a breakout through 22.25 today,
but succumbed to market pressure and closed only marginally higher.
 
Thinner names are much more volatile
and have proved to be very difficult to trade without buying into pullbacks in
them. Larger stocks tend to act more stable and attract larger institutional
dollars. Stocks like Qualcomm
(
QCOM |
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PowerRating),
Ebay
(
EBAY |
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PowerRating)
and Yahoo!
(
YHOO |
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PowerRating) have led the way
and may continue to do so as long as the market can avoid consistent selling
pressure, or distribution.
Until Thursday,