Hooray For Nonconformists
When a market moves in a way in which the news
media and their often-quoted sources chime in agreement, then you know it’s time to
step away from the crowd and be an independent thinker.
That’s why on Thursday, I’ve taken a close look at stocks that
have been going against the grain. The signs of strength we see, for example, in
Andrx
(
ADRX |
Quote |
Chart |
News |
PowerRating), make it an attractive setup if the overall market defies the
bearish expectations of the majority of market watchers and Street urchins.
ADRX broke out from a two-week triangle that was contained
within a larger triangle that has been unfolding over the past two months.
Notice how the rising bottom of the two-month triangle has tracked ADRX’s 20-day
moving average. This suggests that a robust uptrend is in place. Traders looking
to trail stops might, moreover, trail them along the underside of the 20-day
moving average. The one weakness I see here is that volume did not surge in any
meaningful fashion. But then again, during the course of the 20-point gain over
the past two months, there weren’t that many impressive moments volume-wise.
Traders will be watching for further opportunities on any revisits to the 20-day
moving average.
See you tomorrow,
Eddie