The Market Has Spoken, And Here’s The Best Thing You Can Do Now

  • March 16, 2004
  • Tim Truebenbach

The
stock market handed out a fairly indecisive session of trading
following the Fed’s interest rate meeting today. The Dow and S&P 500
rallied almost a percent but volume came in lighter than yesterday. Meanwhile, the Nasdaq could have convinced us of something with its volume coming in heavier,
but it closed up only .2% and in the middle of the day’s range.

image src=”https://tradingmarkets.com/media/2004/Tim/tt031604-01.gif” />

image src=”https://tradingmarkets.com/media/2004/Tim/tt031604-02.gif” />

Regardless of Tuesday’s
action, the market has already spoken with its recent distribution and the best
thing to do is NOTHING!

There have been a few stocks that have hung in there during this correction,
but they have been few and far between. Microstrategy

(
MSTR |
Quote |
Chart |
News |
PowerRating) put on a good show before being swept lower.

image src=”https://tradingmarkets.com/media/2004/Tim/tt031604-03.gif” />

^next^

Qualcomm

(
QCOM |
Quote |
Chart |
News |
PowerRating) has held up well and seems to have a buyer interested in the stock.
Note 2/23 and 3/5; despite the correction the stock still wants to move higher.
The only problem here is that 75% of past leaders (i.e., QCOM) do not come back
to lead again for very long.

image src=”https://tradingmarkets.com/media/2004/Tim/tt031604-04.gif” />

Petroleum
Development
(
PETD |
Quote |
Chart |
News |
PowerRating) has held its breakout from 2/25 thus
far.

image src=”https://tradingmarkets.com/media/2004/Tim/tt031604-05.gif” />

KCS Energy
(
KCS |
Quote |
Chart |
News |
PowerRating) is in the same group and is managing to
hang above its 50-day after a few close calls.

image src=”https://tradingmarkets.com/media/2004/Tim/tt031604-06.gif” />

There are other names setting
up and acting well, but until we start to see some strong accumulation in the
market, it doesn’t pay well to play.

Until next time,

Tim Truebenbach

timt@tradingmarkets.com