Don’t Worry About Yesterday…
Just a little lesson on how I think and
the things I observe.
Longer-term, my stance has not changed…and you know what
that is. But as I said
yesterday, I think the market has a chance for upside testing. I believed
this for a couple of reasons. The most important thing I have been
seeing are some fine finishes. I have always believed that the big boys
step up to the plate at the end of trading
days. The market has now experienced
several days finishing at the highs after big drops. Several days is
the key. One day…no big deal, two days…getting there, three days…now
you are talking.
Of course, combine this with oversold sentiment readings
across the board and a ton of
headline-grabbing bad news and you have a second reason to stop shorting
at the very least.
That brings me to today. I have been out most of the week,
so I have not been able to watch
much…but I still do my charting at night. Simply put, I was surprised
to find some decent-looking breakouts the first day the market was
up in earnest.
Guess what? All this doesn’t amount to a hill of beans.
But it is a start. It takes me
off the pedal on the short side…it gets me to put some mental stops
on any shorts out there and it gets my ears pinned back to look for
potential leadership.
The moral of this story is no matter how negatively one
sees things, you must adjust to
the changes you are seeing in the market and not worry about yesterday’s
thoughts. Let’s do an exercise here by looking at the names that are
popping out the first day up. It is my contention that if the market can
put a decent couple of weeks together (I am
not asking for much), then some of these
names can provide leadership. Remember one of my mottoes: it is easiest
to isolate strength in the weakest of markets.
Here are some isolated names for
your review.
As always, stops on everything.
Electronic Arts
(
ERTS |
Quote |
Chart |
News |
PowerRating) pops out of a long base better-than-average volume.
Bed, Bath & Beyond
(
BBBY |
Quote |
Chart |
News |
PowerRating) moving out of a base-on-base formation.
ConAgra
(
CAG |
Quote |
Chart |
News |
PowerRating) is a
slowpoke but great chart.
Pixar
(
PIXR |
Quote |
Chart |
News |
PowerRating) is
trying to move out of not-so-good-looking cup-and-handle.
Bowater
(
BOW |
Quote |
Chart |
News |
PowerRating)
moves out on heavy volume. A PAPER COMPANY breaking out?
