Expect More Of The Same
Last week’s
post-holiday action rates a big WOW! Approximately 3:30 p.m. ET on Wednesday,
the markets started to ramp — led
by Techs and specifically, the Semiconductors.
If you recall, my
Dec. 17 report mentioned that the Semis would
be the key. As Semis go, so goes the market — and last week was no
exception. Continue to keep a keen
eye on them, as they will continue to tell a
major tale. I am a little depressed about it, because a lot of names were
wedging up which could have been
great short setups, but Wednesday’s and Thursday’s
action did that in.
The main point I want to make today is the same
point I made in my Dec.
31 report — and
that is the markets continue to act well. More and more names are setting
up in proper bases and more importantly — breaking out. I also mentioned
that secondary stocks were leading the way and that has not abated.
I expect more of the same. So, what
to do here? Go with it!
I know what you could
be thinking — I battle with it every day: Is this just a monstrous bear
market rally? Is the market going
to get hit over the head in an instant? It shouldn’t
matter. Why? SELL DISCIPLINE. If this rally does
abort, just continue
to keep tight stops on all trades and you will be taken out with small
losses. This is a great way to figure out if the market is topping. The
more failures, the more potential
for a top.
Resistance levels I had you keep
your eye on still need to be watched. The Dow jumped
above the 10,170 level but the Nasdaq has yet to close above 2066 and
the S&P 500 above 1174. Both
are close. A break above those levels simply indicates
more to come on the upside.
Here are some great-looking charts to feast on:
Commerce Bancorp
(
CBH |
Quote |
Chart |
News |
PowerRating) moves out on monstrous volume.
Brinker International
(
EAT |
Quote |
Chart |
News |
PowerRating) breaks out on heavy volume.
(Another Restaurant.)
Kulick and Soffa
(
KLIC |
Quote |
Chart |
News |
PowerRating) busts out above $19 — it had been
trying for eight months.
I also wanted to make sure that you knew that
my 4:00 p.m. ET radio show has been moved to 6:00 p.m.
to join my nationally syndicated show. You can access the show on the web
at https://www.businesstalkradio.net
live or archived.
My quarterly review comes out tomorrow.