Searching High And Low
Without
hesitation, I am willing to admit that this market is about as poor
and confusing, as I would hope a market could get. Without a sound set of rules,
I do not know where I would be. Lately, the repeated declines and reversals
continue to set up as potential bottoms, but they fall apart over and over
again.
There just doesn’t appear to be a
whole lot of relief in sight, but our job is not to predict what will happen,
but rather interpret what is currently happening. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) is trying to hold its September lows, and only by watching will
we know what happens. To bet on whether it falls or holds would amount to just
that: a bet by a gambler.
For the time being, Defense and
Consumer stocks have been exhibiting small pockets of strength. Lockheed
Martin
(
LMT |
Quote |
Chart |
News |
PowerRating) is moving higher today despite the choppy market. As
it does so, it would be nice to see volume pick up.
Apollo Group
(
APOL |
Quote |
Chart |
News |
PowerRating)
is moving towards the upper end of an ascending base.
Coming from the same group as APOL, FTI
Consulting
(
FCN |
Quote |
Chart |
News |
PowerRating) is feverishly trying to stay above its 50-day
moving average.
It is important to watching leading
sectors and stocks for an eventual rally. Right now, the sidelines are looking
pretty good, as capital preservation is what I view as the all-important goal
right now. When we emerge from this bad, sick market, the time to focus on
making money will have arrived. Currently, it’s important to watch out for the
beginning of a rally. This may have occurred yesterday, so be alert. The next
thing to watch out for at this point, is a possible confirmation of the rally.
This could come as soon as Monday and would be a 2% gain in one of the major
indices (including the S&P 600) on
heavier volume than the day before.
Because of this possibility, I will be
searching high and low for stocks in leading groups over the weekend.
Enjoy yours,