3 solid names to watch
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
click here or call
888-484-8220 ext. 1.
The market remains
locked in uncertainty with only small-cap names holding their own.
The NASDAQ saw a 1% bounce today, but volume was below-average.
It is tough to put all the pieces together very
quickly when the Fed throws out mixed comments that do not answer the question
of when interest rates will hold steady. It is tough to decide how aggressive to
be when we watch leading stocks such as Google
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GOOG |
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start to get hit on heavy volume after so many months of constant appreciation.
It’s tough to push the “Buy†button when the NASDAQ seems like it is unable to
hold key levels of support i.e. 50-day moving average or prior lows with volume
coming in heavier into the selling.
When things are this tough, the market is telling
us something, follow a proven set of rules and stay disciplined. By wavering and
changing things as we go along, we are allowing uncertainty to influence our
investment decisions. The first rule of investing is not to lose. Secondly, we
try and make money to meet whatever goals we have personally set.
Right now, the market is in uncertain times. This
can be seen clearly through the best indicator of all — price and volume. If you
still want to make trades, small-cap stocks are where strength has been found,
but these are thin companies that can move on a dime. Click Commerce
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did very well in recent weeks, but still saw a drop of a little over 17% in only
2 days’ time.
Vital Images
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with a little less volatility. This company saw about a 9% drop in a few days.
Since these names are volatile, it’s important to
trade them with the right set of skills. Use stops in order to protect your
capital and don’t commit too heavily in an uncertain environment. Although
mid-caps stocks are not without volatility, you may be able to alleviate a
little by looking to this well-performing capitalization. CH Robinson
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comes from this area and is showing sound accumulation.
The market remains uncertain, but with a sound
set of rules you can focus on the #1 priority: not losing your money. Once you
find yourself accomplishing this, making money in a trader’s market like this
one is that much easier.
Good Trading.
Tim