Get Tunnel Vision!
The markets
continue to act well off of the Sept. 21 low, as well as their
subsequent follow-through days. It does not matter that I think this rally could
be just like January’s and March/April’s. The only thing that matters is today.
Get tunnel vision! If this is a typical bear market rally, it will show
itself. It will show itself with high-volume distribution days. It will show
itself with high-volume breakdowns. Right now, nothing doing on the negative
front.
But…you must continue to realize, for the most part, this is a TECHNOLOGY
affair once again. I know I have said this before but I must say it again.
The best moves so far have been reserved for those stocks that were down the
most. For example, even though
(
JNPR |
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Chart |
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PowerRating) has rallied over 100% from the lows,
it is still down over 90% from its highs. CNBC is famous for talking up the
“big moves off the lows,” but often seems to fail to mention the
bigger picture off the highs.Â
Quality Tech breakouts are few and far between.
There have been some examples:
(
KRON |
Quote |
Chart |
News |
PowerRating) breaking out of a flag pattern.
(
TECD |
Quote |
Chart |
News |
PowerRating) showing nice action after its $42 breakout.
On the bad side…and I reiterate this much of what Tim
Truebenach had to say in his latest report…leading
MEDICALS are now breaking down all over the place. Just take a look at
(
CAH |
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Chart |
News |
PowerRating)
or
(
ADVP |
Quote |
Chart |
News |
PowerRating).
Maybe this is the start of a great new bull market. I hope so. Just keep
in mind, there is visible potential for resistance all the way up… which
has to be worked through. I expect that there will be plenty of time. Keep
looking at the NEW HIGH LIST for new names to
review for any potential, and as always, close stops on everything…just
in case.