Another Test

January 10, 2002
Tim Truebenbach

I was excited
to see yesterdayâ€™s action after such a solid move into the New
Year. Whether bulls like it or not, a market canâ€™t go straight up and many of
the sentiment indicators were starting to bother me with complacency. The 52.6%
bullish and 22.7% bearish investment advisors do not leave very many more
investors waiting to switch their opinion and feed a bull advance. Donâ€™t get
me wrong, Iâ€™m not saying weâ€™re going to fall apart here, but we do need a
consolidation after the recent advance.

ACS has been in an ascending base:

PSFT has been working through a double
bottom base, but admittedly lacks some of the fundamental traits I would like to
see such as ROE of at least 17%. Nonetheless, the stock should be a good one to
keep an eye on.

IART is working towards the top of a 3
Â½ month base. The company has been growing earnings considerably, but does lack
some traits such as ROE being only 11%.

Over the past day, Kronos
(
KRON |
Quote |
Chart |
News |
PowerRating) built on its break through 53, but gave back some of the gain as the
market reversed yesterday. The only thing to keep an eye on was the rally to new
highs on lighter trade than the previous day.

PEC Solutions
(
PECS |
Quote |
Chart |
News |
PowerRating) is getting hit today as a bunch of people who bought the breakout
rush for the exits as the market weakens.

Direct Focus
(
DFXI |
Quote |
Chart |
News |
PowerRating) pushed past its four-week handle and pivot of 33.34 by gapping
higher yesterday. The company boasts a stellar growth rate of 145% and it will
be interesting to see what this breakout does in the current environment of
failing breakouts and a correcting market. As always, Iâ€™d keep an eye out for
signs of further accumulation or distribution.