FTDs Nice…Now Some Leadership
Going
into today’s session we have had three follow–through
days and today we had a nice move in the broader markets on high
volume once again. Although we have seen impressive moves, the fact
remains the major trend is still down. If you checked out Boucher’s
New High/New Lows list, there still is no clear leadership.
So
at this point what am I doing?
Well, I have a nice list of
stocks that meet my fundamental criteria on the long side and will
continue to watch these stocks as they become more technically
appropriate. I also have a list that are potential short candidates
that meet the my shorting criteria and I will continue to monitor
these until they too become technically appropriate. So at this time I
would suggest review our lists and continue to scan them to see if
they are setting up any potential trades in for the near future.
One such stock is Biomet (BMET)
which looks pretty good on a technical and fundamental basis. It
appears that BMET is forming a handle to go along with its 10 week
base. (It actually broke above its pivot point of a multi week
double bottom on 9/28/01 on very good volume). Earnings have been
steady (12%, 24%,16% and 17%) with a so-so 5 year growth rate of 17%.
Spectralink (SLNK)
is looking interesting. I mentioned this stock a while back in this
column. The telecom equipment stock is forming mini-cup with handle
pattern on a daily basis.
On a weekly
chart it also looks nice, the stock is forming a multi-month cup with
handle.
Looking at the ETFs the Oil
Services HOLDRs (OIH)
looks poised to resume its trend down after pulling away from its
lows.
Remember that all securities
are risky. In any trade, you should always reduce your risk by
adjusting position size and placing open protective stops where
you will sell your long or cover your short in case the market turns
against you. For an introduction to combining price stops with
position sizing, see Loren’s lesson, Risky
Business.
Greg