Don’t Look For Stocks Now. Try This…

• March 15, 2005
• Tim Truebenbach

This
is one of the most difficult markets I have had to navigate through
as the chop continues.  We have seen some recent distribution in the indexes,
but not enough to walk away from the action completely.

 

 

 

Before coming back to the
present, let’s remember the fourth quarter!  The NASDAQ charged ahead with
volume coming heavy the entire way.  Then, as Christmas passed and New Years
approached, volume dried up and the January correction and selling began.  In my
experience and historical research, buying like we saw in the fourth quarter
does not just go away.  Eventually, it should re-surface and higher prices may
very well prevail. 

 

For now, there’s now doubt the
market remains tricky.  A couple weeks ago we saw the homebuilders and energy
ripping higher.  Now retail and select medical stocks are acting well. 
Internets and technology are some of the worst performers, but the rotation has
been fast and furious for the past year or so.  I was discussing a very good
example of the technical difficulties within this market with a friend of mine
in Bebe.  The stock got nailed below its 50-day on heavy volume: a
blatant sell signal.  Following the action, the stock has gone on to new highs.

 

 

Rather than fight to find a
good stock or two, I suggest looking to broad-based ETFs right now.  I strongly
believe this market is headed higher, but it is difficult to say what stocks
will lead it there.

 

Tim Truebenbach