Keep A Monthly Chart Handy–Here’s Why

  • February 9, 2005
  • Tim Truebenbach

Just
when it looks like it’s safe to go back in the water, the market
throw out a curve ball!  After today’s trading, the S&P 500 declined to its
50-day moving average on heavier volume (distribution day) and the NASDAQ
avoided a distribution day, but did decline over 1-1/2%.

 

With an uncertain market
through this lingering correction, leading stocks have not been able to get
much going.  Google (GOOG) reported stellar
numbers last week, but has retraced the entire move.

 ^next^

 

Apple Computer (AAPL)
has steadily been moving higher, but the weight of the market was felt as the
stock quickly lost almost 3% in today’s session.

 

 

As dull as things seem right
now following last month’s selloff, it is important to remember the solid
fourth quarter the market posted and keep a monthly chart around for positive
reinforcement that the uptrend is still intact.  The best thing to do right
now is not get into any real trouble with individual stocks, but stay exposed
to the market for the inevitable march higher.

Tim Truebenbach