I’m bullish…here’s why
The fact that the market is gaining ground rather
than giving ground on heavier volume in the wake of Katrina may indicate that
the short-term correction I have been talking about is coming to an end.
For several weeks I have been
saying the market needed to consolidate and squeeze some of the bullishness
out. Declining stock prices and uncertainty about our cost of living,
specifically the cost of gas has helped get investors looking the other way.
Many large stocks have held up
well and have been waiting to resume their runs. Apple
(
AAPL |
Quote |
Chart |
News |
PowerRating) broke
out of a long-term base on 8/12. If you know my style of investing, you also
know that this company has the ingredients for success: strong earnings growth,
good accumulation and new products. For those of you that do not know, AAPL
informed the press that it has a surprise release on September 7th.
News like this can support continued earnings growth and we all know that
earnings are the driver of a stock price.
There has also been an
emergence of biotech stocks in recent weeks. Names like Celgene
(
CELG |
Quote |
Chart |
News |
PowerRating)
and Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating) have been clinging to new highs after very
compelling news.
With leadership in place and a
market that has yet to come under blatant distribution, there is still a strong
theme saying we are headed higher. With all the distractions that can occur, it
is important to stay focused on these things.
Tim
Timothy J. Truebenbach is
the President of True Capital Management and general partner of True Capital
Partners LP, a hedge fund. He uses a disciplined model that trades on the
intermediate-term time frame. The model, which combines volume parameters, price
patterns, and company performance with market timing, has significantly
outperformed the S&P 500 since its inception. Coming into the business with only
$5,000, he has managed to build an international money-management firm with
clients around the world using the profits produced by this investment model.
Before starting his own investment advisory firm, Tim provided services for
Frank Russell Company in the Institutional Brokerage Services Division, as well
as consulting services for a national money-management firm.