Does This Point To A New Bull Market?
We
saw the market post convincing gains yesterday, and then push
higher this morning. After reversing
and posting a nice retracement of about 120 Dow points, we are once again
moving higher.
Medical and
Internet sectors have been leading the way and we are seeing solid, leading
stocks pushing higher. The combination
of these factors may very well be paving the way towards a new Bull Market.
Obviously, no one can be certain about this, but everything is pointing
in that direction from the criteria I look at.
Ebay
(
EBAY |
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PowerRating) is one of the pronounced leaders because it is a large cap that
institutions can pour into without a problem of liquidity.
 
Stocks like Hi
Tech
(
HITK |
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PowerRating) and United Online
(
UNTD |
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PowerRating) have shown impressive moves, but are a bit more difficult to
trade.
 
J2
Global
(
JCOM |
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PowerRating) was one of the first stocks out of the gates in
mid-March and recently made a successful re-test of the 50-day moving average.
 
With losses still
lingering from the past three years, there is definitely a pronounced smell of
fear in the air. Too often, we have
seen purchases turn to immediate losses or small gains wiped out for
breakeven. The Training
Module I just produced is a derivative of the fear and was a way for me to
alleviate it and take small profits while maintaining the intermediate-term
time-frame that has such powerful potential in a Bull Market.Â
Right now, it is
important to seek out solid companies setting up solid technical patterns.
We have seen the first wave of breakouts in many of the stocks I have
mentioned in this column. Many of these
will re-set and may break out again, while new names will also appear.Â
All of this relies on the market maintaining its strength, but that
does not seem to be an immediate issue.
Stocks like Adtran
(
ADTN |
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PowerRating) and Biosite
(
BSTE |
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PowerRating) are
setting up to possibly push through respective pivots of 41.08 and 44.46.
Despite our
thoughts and opinions, if we follow a proven set of rules and solid strategy,
our accounts’ success will tell us what we need to know in the end.
Good Trading,