3 stocks poised for long runs to the upside
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
The market threw out a
curveball of its own today. Prices declined as volume increased. This
type of action indicates that the correction we have been involved with since
August is not complete.
Even though a confirmed uptrend remains in place,
there has been very little to do or talk about for the past few weeks. Like most
corrections, sellers seem to have come for just about every group by now.
Biotech’s (BBH) were one of the last to fall, but have since rebounded.
Historically, this group has performed very well
in a rising rate environment. Names like Amgen
(
AMGN |
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PowerRating), Genzyme
(
GENZ |
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PowerRating)
and Celgene
(
CELG |
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PowerRating) have recently broke out of bases dating back to the
late-1990’s and may have a longer run ahead of them.
As you decide what to invest in, you may wish to focus on fundamentally sounds
companies with technical patterns that indicate institutional accumulation. If
picking individual stocks is not up your ally, then consider some of the
following ETF’s for further research:
(
QQQQ |
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Chart |
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PowerRating) (NASDAQ 100),
(
SPY |
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PowerRating) (S&P
500),
(
IJR |
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PowerRating) (S&P 600),
(
BBH |
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PowerRating) (Biotechs) and
(
SMH |
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PowerRating) (Semiconductors).
The bottom line is that this market is not acting unhealthy at this time. There
is definitely no reason to run from it and it can only follow the current
sideways action in a tight trading range for so long before breaking one way or
another.
Tim Truebenbach
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