Santa Who?
The bounce.
That’s all it is at this
point.
Just to put things in
perspective, remember that Friday’s action is just one day’s activity.
Looking back for a moment
at June 2, we also notice the Nasdaq rolled up a big gain (6.4%) on big volume,
only to falter some weeks later
The key point to understand is that
individual issues haven’t built the bases necessary to support low-risk entry
points from the standpoint of the intermediate-term player.
Most all growth stocks remain snowed
in with overhead resistance.
The previous four sentences appeared
in this space Dec. 5.
I use them again because little has
changed in the interim.
Except 13% down in the Naz.
From Mark Boucher’s column:
"…it is wiser to simply sit back and try to IDENTIFY the bottom after it
has formed, rather than try to PICK the bottom as it is forming."
This is what it’s all about.
In essence, one takes out an insurance
policy that protects one from getting hurt by bottom-fishing.
The insurance premium is the money one
loses by not picking the exact bottom tick in a stock.
Since no one buys the exact bottom
tick, this is not such a hefty price to pay.
Importantly, it keeps one out of false
rallies much of the time.
Remember: Ignore the first few days of
rally off a low.
They tell you next to nothing.
Even something like EMC’s
(
EMC |
Quote |
Chart |
News |
PowerRating)
15% Friday bolt means little in the bigger technical picture.
Santa may not have come to Wall Street
this year.
That doesn’t mean that he won’t come
in the next.
Happy Holiday.