3 reasons this market is going higher
Timothy J. Truebenbach is the President of True Capital Management and
general partner of True Capital Partners LP, a hedge fund. He uses a
disciplined model that trades on the intermediate-term time frame. For a
free trial to Tim’s Nightly Stock Analysis Report
It’s been an interesting week of
trading thus far because there’s no doubt
investors are looking for a pullback, but the market will not hand one out!
Over the past couple of weeks the market has been fairly overbought.
Additionally, most investors are bullish. This almost always amounts to a
pullback or at least a consolidation. We seem to be seeing the latter. In rare
cases, overwhelming bullishness is not a bad thing if those that are bullish
have yet to invest. This may be the current case as the market has been unable
to drop once pushing past 2,200 on the NASDAQ.
We continue to see very strong leadership. Biotech stocks such as Amgen
(
AMGN |
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PowerRating)
and Genentech
(
DNA |
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PowerRating) have not been willing to give much ground.
Apple Computer
(
AAPL |
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PowerRating) cannot do anything wrong. Take a look at the
parabolic daily chart the stock has achieved and I think you will agree.
Google
(
GOOG |
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PowerRating) is in the midst of a pullback as well. Company fundamentals
remain strong, but the stock needed to work off a very good rally.
While many of the primary leading stocks have been resting, we have seen new
set-ups either forming or breaking out of longer-term base patterns. Syneron
Medical
(
ELOS |
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PowerRating) has found institutional support and held a recent breakout.
We have also seen a few companies attempt breakouts only to fail. Many of these
are most likely due to the slightly weaker market. Volcom
(
VLCM |
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PowerRating) is one
such instance.
Whatever you may be looking at, this market remains to act healthy and is most
likely headed higher based on all of the above-mentioned factors. Whether or not
we retrace some of the recent gains beforehand remains to be seen. Enjoy this
market and be sure to hone in on sectors and stocks exhibiting unusual strength.
Have a Great Weekend!
Tim Truebenbach
Comments @ Truecapitalmanagement.com (no spaces)
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