Here’s One Way To Play This Market

  • February 15, 2005
  • Tim Truebenbach

The
NYSE-related indices advanced on increasing volume.  The NASDAQ
volume also increased, but the index was turned away at its 50-day moving
average.

 

 

 

Nonetheless, the market is back
in a confirmed uptrend with follow-through days having appeared in all of the
indexes.  Small-cap stocks have been leading the way as the S&P 600 has been
outperforming the other major indexes and followed through on 1/26 and 1/31.

 

Gaming stocks continue to surge
higher on continued success and growth in the industry.  Wynn Resorts
(WYNN) broke out of a cup and handle base today on heavy volume.  This stock has
been a leader in its group because of the visionary founder despite its lack of
earnings.  Personally, it’s without EPS, it’s still a name I would watch rather
than own.

 

 

 Homebuilders are also holding
up well amid the historically low interest rate environment.  NVR found
support at its 50-day moving average.

 

 

The single problem with both of
these groups is that most of the stocks are well beyond any initial base pattern
and are very extended in price.  One way to play the market at this time is to
focus on leading ETFs that reflect strength in the broader market as it moves
higher.

 

Good Trading!

 

Tim Truebenbach