Here’s The One Good Thing Weakness In The Market Does

  • April 28, 2005
  • Tim Truebenbach

The
current market we are seeing can be likened to one thing everyone loves to do
for fun, but not with the bulk of their hard-earned money: Gamble! 
We have been seeing large daily swings coupled with plenty of volume.

 

 

The biggest problem has been
in no clear direction alongside the heavy volume.  We have seen both
accumulation days and distribution days back-to-back.  The only clear analysis
we can make is that small cap stocks seem to be holding up better than others
because we are in a confirmed rally on the S&P 600.  The index followed
through on 4/21 and the rally is still in tact.

 

 

The one good thing weakness
in the market does is make strong individual stocks easier to find.  Right
now, about the easiest thing to determine is THE strongest name… Google
(GOOG).  The company just blew away estimates and is trying to break out of a
base on base pattern.

 

 

I would love to talk about a
host of other names, but they just don’t exist at this time.  If you do play
in the market, it is best to tread lightly as the environment feels a lot like
Vegas.


 Tim Truebenbach