Don’t Force It
The major
averages continue to display healthy action. Rallies have come on
heavier trade, while pullbacks are occurring on lighter volume. Yesterday also
displayed strong action as the indices were able to close above their lows for
the session.
The final component we are looking for
in this rally are strong growth companies breaking out and leading the market
higher. The homebuilders have already pushed us this far, and they continue to
hang in there. In the days and weeks ahead, there should be more and more names
showing themselves as this rally continues. So far, it still remains a little
choppy in the growth arena as many small and mid-cap names are pushing higher
and are subject to volatile moves both up and down.
Advanced
Technical Products
(
ATPX |
Quote |
Chart |
News |
PowerRating) hails from the Defense sector and
pushed through its pivot of 28.80 on heavy trade yesterday. Today, the stock
displayed the volatility I referred to as it traded down to 27 from
yesterday’s close above 30.
Neoware
Systems
(
NWRE |
Quote |
Chart |
News |
PowerRating) is another stock with the ability to give traders
whiplash with its 10% daily moves. The smaller, thinner names are very difficult
to hang onto.
Of the names I am currently watching
for confirmation of this rally, OSI Systems
(
OSIS |
Quote |
Chart |
News |
PowerRating) is attempting a breakout today with volume coming in heavy. Invision
Technologies
(
INVN |
Quote |
Chart |
News |
PowerRating) is another stock trading above its pivot of
46.30 on heavy volume.
As I watch the market and screen for
names that are setting up, I am starting to find more to look at. Verisity
(
VRST |
Quote |
Chart |
News |
PowerRating) has formed a high handle and is setting up atop its previous base
similar to the style Tuesday Morning
Corp
(
TUES |
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Chart |
News |
PowerRating) did, preceding its breakout on March 4.
Land’s End
(
LE |
Quote |
Chart |
News |
PowerRating) is working on the handle of its base that began at the end of March
2000.
As time progresses, either we will
continue to see more and more opportunities emerge, or breakouts will fail and
eventually disappear until a later date. If stocks don’t appear or start to
fail, it is best not to force the issue.
Until Thursday,