If This Rally Is For Real, Look For This To Happen

The
market continues to inch its way higher, even though we are
currently looking at extended gains from the lows.

 

 

The NASDAQ set a low at 1889
and currently stands at 2062.  That is a gain of just over 9%.  In my mind,
this market is extended and I wouldn’t be rushing into it, but carefully
picking the points or stocks.  Ever since mid-2003, we have not seen any
consistency out of the averages or individual stocks.  If you were buying into
pullbacks or weakness, then you have probably done quite well.  Once blatant
accumulation is spotted, the top is usually in…at least short-term. 

Google (GOOG) made a
nice run and seemed to lead the market higher once again.  Today’s action was
a little disconcerting as it reversed after posting large volume.

 

 

The Merc (CME) has
been working its way up the right side of a double-bottom base.  Accumulation
needs to increase for this to be a safer bet as there was fairly heavy
distribution as the base began.

 

 

CB Richard Ellis (CBG)
broke out of a double-bottom base on heavy volume.  This occurred through the
pivot point of 36.22.

 

 

Although this rally in the
stock market started rather shaky, if it is for real, plenty of strong growth
stocks will set up in the weeks ahead.  It is positive to see the market
hanging in there and all of the negative talk surrounding the stock market. 
It is also exciting to see growth stocks acting well.  Other names to keep an
eye on include MCRS and DNA.

 Tim Truebenbach