Be Ready — It’ll Pay Off
I’m back after a very relaxing week of vacation!Â
Even though I took off, the Bull did not. We saw a very solid day of
accumulation on Wednesday as the S&P 500 and Nasdaq rose on heavier volume
than on 7/1.
The past couple of weeks have
seen occasional distribution days. Fortunately, they have not come in groups
or with any consistency to lead us to believe institutions are rushing for the
exits. It is still important to hang onto stocks that have been leading this
market higher and continually look to put capital to work in new names that
appear.
EBay
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approaching its all-time high of 127.50 and should be watched to form a
consolidation before moving through this point.
We are still seeing new
stocks able to breakout and push higher. American
Healthways
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Advance PCS
(
ADVP |
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gains over the past few weeks, and we have seen new stocks like
Marvell Technology
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higher.
Not all breakouts have gone
on to immediate gains. Foundry Networks
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tried to punch through 16.25 and has been unable to make much progress,
although volume still shows the breakout intact.
The market always makes its
move when the majority least expect it. Traditionally, the summer has been a
slow period and there isn’t much on the horizon to rally on. It will pay to
constantly be searching for new candidates and monitoring healthy action of
current leaders such as Ryland
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RYL |
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PowerRating). Whether the market begins another move on July 7 or not until the
fall, it will literally pay off to be ready.
Have a wonderful and
safe Fourth of July holiday!