Here’s The Priority

  • January 23, 2003
  • Tim Truebenbach

The Nasdaq led the charge with
over a 2% gain on heavier volume than yesterday. The Dow and S&P 500
also closed higher with gains of 0.5% and 1%, respectively.

 

 

The best tidbit I have gathered from this market in regard
to the recent correction is that NYSE volume has been higher than Naz volume
over the past two days. This may lead to a rally over the next few weeks because
it has done so quite often over the last year. It’s no guarantee, and I would
definitely wait for solid stock candidates before rushing in, but it is a
positive sign.

 

The “solid stock candidates” factor is what I am most
concerned about right now. There just aren’t that many names to go after. It may
only take a week of positive market action to produce some, but for the time
being, following the overall market action is the priority.

 

Today’s trading had a strong presence in the Computer
sector. The following groups may be a good place to search for candidates along
with the group’s daily percentage change in parenthesis:

  • Computer-Memory Devices (4.1%),

  • Computer
    Software-Desktop (3.7%),

  • Computer-Peripheral Equipment (2.3%),

  • Computer
    Software-Enterprise (2.0%).

The market has not done much of anything in 2003, but it
has been good to see negativity build throughout the five-day decline. Since I
still haven’t seen enough distribution to write off new purchases, I will
continuously be on the lookout for them. 

 

Good Trading,

 

Tim