Groups Continue To Flip Flop
Leadership has been flip
flopping back and forth from one group to another the past couple of
months. I am ready for the markets to give me a sign of what sector is
going to lead the markets to the promised land. I am hoping the
Federal Reserve Boards decision Wednesday will provide more guidance
for the markets.
Last night in this column I
mentioned Black Box Corp. (BBOX).
Tuesday
it
rallied out of the ascending symmetrical triangle on decent volume.
Note the rise in the Relative Strength line,
which made a new high before price—this
indicates to me the stock has some momentum behind it.
Dole Food Inc. (DOL)
looks interesting to me,
as the canned food company moved rapidly up the right side of
its
cup. It appears to have stalled out,
giving it an opportunity to form a high handle.Â
Ameripath Inc. (PATH)
looks strong as it retraced less than 38% off its last move and looks
like it could resume the trend up to test its highs.Â
Edging up higher on the
right side of the its 30+ week base was Fiserv Inc. (FISV).
The
computer services firm looks poised to testing its 52 week high.
Turning our
attention to the exchange traded funds,
the B2B Internet HOLDR’s (BHH)
led the day in the percent gain column by gaining 3.0%.
Also gaining
was the WEBS-Australian Benchmark (EWA)
which gained 3.0% on low volume and the Oil Services HOLDR’s (OIH)
which gained 2.7% for the day. The Oil Services HOLDR’s still look
vulnerable to me as it pulled off its lows in Tuesday’s session.
Funds losing
ground today were the Ishares Dow Jones U.S. Chemical fund (IYD)
which shed 2.5%, as well as the WEBS-Canada Benchmark (EWC)
which closed lower by 2.1% on very light trading.
Remember that
all securities are risky. In any new trade, reduce your risk by
limiting position size and placing open protective stops where you
will sell your new buy 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.
OTHER
Dave (Landry)
thanks for the “welcome“;
I
guess it just shows you how happy I am to be here.
My wife got a
kick out of it.