Don’t Be Fooled
Just
when everything looked as gray as it could get,
the market puts in a decent rally just to throw everyone off! The Nasdaq and S&P
500 both took out last week’s lows, effectively killing the rally that was
awaiting a follow-through day.
This just means it is time to begin
counting all over again. Fortunately, with yesterday’s declines, pessimism
became more apparent in the overall picture. The Put/Call ratio spiked higher,
the Bullish/Bearish investment advisors both became a little more bearish, and
new lows overtook new highs, 140 to 138.
Like I initially said, the two indices
took out last week’s lows, throwing in a bearish stint, and the first day
following that, we’re having a decent rally of almost 1% in the S&P 500 and Dow
as I write this. Don’t be fooled, though. We will need to see the market produce
one rally and then another up day of at least 2%, four to seven days later on
volume that is better than the day before.
Panera Bread
(
PNRA |
Quote |
Chart |
News |
PowerRating) has been on a
constant ascent since its breakout in early November. Last week it began
increasing its rate of ascent, a sign of a potential pullback to come. The last
few days have seen this recent winner give some ground quite quickly.
NVR, Inc.
(
NVR |
Quote |
Chart |
News |
PowerRating) has also been a stock to defy the recent growth trend as it has
continued its advance despite breakouts failing left and right. January 28th
saw the stock’s biggest 1-day point gain since the rally began along with its
biggest volume. We’ll have to watch this one to see if it can work off some of
this overbought condition and move higher.
Speaking of NVR, I appreciated all of
your questions in yesterday’s chat session. From the questions I was receiving,
it appears that TradingMarkets has developed a very knowledgeable audience. It’s
a pleasure to share comments with investors looking to achieve the highest
levels of success for themselves.
In the meanwhile, there is not much to
talk about on the long side during these market bounces. As things unfold, I
will share many more names with you, but in the meantime, I am just watching
some of the stocks bounce that have been beaten down over the past few trading
sessions. Some of these names include Veritas
(
VRTS |
Quote |
Chart |
News |
PowerRating), Tyco
(
TYC |
Quote |
Chart |
News |
PowerRating),
Electronic Arts
(
ERTS |
Quote |
Chart |
News |
PowerRating),
Airgate PCS
(
PCSA |
Quote |
Chart |
News |
PowerRating) among others.
Please feel free to email me any
further questions you may have using the link that follows this column.
Have a great weekend!
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What are the stocks that Tim Truebenbach’s research says can generate triple-digit returns or better? Click here to find out.