A Sign Of Hope?
A
sign of hope?
The major averages are rallying today on what looks like much
heavier trade than yesterday. If this
continues through the close, we will have the first day for quite some time
where institutions are actually buying stocks.
Of course, I am
writing this column 1-1/2 hours before the closing bell and in this market,
anything can happen in that much time! Regardless
of today’s close, we still remain locked in a hazardous environment where
institutions have sold stocks at will. Until
we see a confirmed rally, new purchases and current holdings alike remain very
unsafe for our capital.Â
A few stocks have broken out in the past few weeks and most of them have
felt the weight of the market on their back. Engineered
Support
(
EASI |
Quote |
Chart |
News |
PowerRating), Eon Labs
(
ELAB |
Quote |
Chart |
News |
PowerRating),
the entire School sector and a few other names come to mind during these tough
times.Â
Deluxe
Corp.
(
DLX |
Quote |
Chart |
News |
PowerRating) is attempting to break out of a seven-month base
today.
Merit
Medical Systems
(
MMSI |
Quote |
Chart |
News |
PowerRating) is trying to move out of an ascending
base today.
Recent history does
not bode well for these two attempts without institutions first showing us
overwhelming evidence that they are again willing to accumulate stocks, i.e., a
follow-through day.
There’s not a
whole lot to do right now other than watch the market.
Today’s action, if it continues, is a great start…but that is all it
is: a start. We’ll know a lot
more about this rally by next Thursday, when I return.
Until then,