Institutions Are Willing To Buy
After going
through my weekend session of research, I concluded one thing: Nothing
has changed since Thursday’s
column. As I write this, the market is under heavy accumulation, as all
three indices are experiencing 1%+ gains on volume that swamps Friday’s
volume.
Day after perfect day of action for
the major indices, they exhibit that institutions are willing to buy stocks. So,
what is so frustrating? They have not yet come for growth and the leadership
sectors with a vengeance. Additionally, the last bull market we saw was unlike
any other. You could do hours of homework, read up on every tidbit of a
company’s financial statements, identify the stock’s pivot point on a
perfect chart pattern, and make your move as it emerges from the well-formed
base and watch a massive, triple-digit gain unfold; or you could open the
newspaper to the Nasdaq stock tables, throw a dart, and watch a massive
triple-digit gain unfold as well.Â
This market will not allow for flaws and will
probably not lead to the huge gains as quickly, even in the prime candidates.
Patience, discipline and a solid set of rules, in my opinion, are going to be
mandatory requirements.
Idec Pharmaceuticals
(
IDPH |
Quote |
Chart |
News |
PowerRating) is
one potential candidate moving up the right side of its base. Pec Solutions
(
PECS |
Quote |
Chart |
News |
PowerRating)
is constantly mentioned in growth circles and continues to build its multi-month
base. Krispy Kreme
(
KKD |
Quote |
Chart |
News |
PowerRating) hangs in there, just 13% off its high. One of the
April-May winners, Christopher Banks
(
CHBS |
Quote |
Chart |
News |
PowerRating) is trying to move back up the
right side of its multi-month base.
Other than a few names here and there,
there are only a handful of stocks that may be ready to move higher while
offering less risk. Be patient, and eventually they will come.
Until Thursday,
Â