Keep An Eye On These 3 Stocks

  • January 29, 2004
  • Tim Truebenbach

Volume
came in massive on a supporting day between the S&P 500
and the Nasdaq. After two straight distribution days on the S&P 500, we
saw buyers step in and push the index for a half-percent gain. The Nasdaq was
not as lucky as it posted the third straight down-day of the week but managed
to find support as it closed in the upper half of the day’s range.

image src=”https://tradingmarkets.com/media/2004/Tim/tt012904-01.gif” />

image src=”https://tradingmarkets.com/media/2004/Tim/tt012904-02.gif” />

The market has been very
solid for weeks and now in three quick days, the Nasdaq looks ready to implode…what
does it all mean?! Profit-taking was due to occur after the move we saw and
the second pressure seems to have been from the Fed’s statement in their
more-aggressive stance on rates.

Growth stocks have not really
fared that well either. Their volatility has become very evident as many names;
including World Acceptance

(
WRLD |
Quote |
Chart |
News |
PowerRating) quickly erased a month of gains in only a couple of days.

image src=”https://tradingmarkets.com/media/2004/Tim/tt012904-03.gif” />

^next^

The most impressive name
I have seen is probably Taser

(
TASR |
Quote |
Chart |
News |
PowerRating). The stock produced some of the largest gains and has given very
little ground. Research in Motion

(
RIMM |
Quote |
Chart |
News |
PowerRating) and Netflix
(
NFLX |
Quote |
Chart |
News |
PowerRating)
have not been quite so good, but they are also solid stocks worth keeping an
eye on.

image src=”https://tradingmarkets.com/media/2004/Tim/tt012904-04.gif” />

Some of the growth stocks
affiliated with semis have almost given up. Sigma

(
SGMA |
Quote |
Chart |
News |
PowerRating) and O2 Micro
(
OIIM |
Quote |
Chart |
News |
PowerRating)
are simply rolling over and just show that stops are a nice part of the game
to preserve capital.

image src=”https://tradingmarkets.com/media/2004/Tim/tt012904-05.gif” />

Looking ahead to the short-term,
it will be very important for the market to come up with some buyers to close
out the week and first month of the New Year. We are seeing support come into
some of the Internet-related growth stocks that have provided strong leadership
for some time. Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating)
for example, found nice support at its 50-day moving average.

image src=”https://tradingmarkets.com/media/2004/Tim/tt012904-06.gif” />

Looking to tomorrow’s
trading, it would be positive to see support come into many of the strong stocks
we have been seeing and close out this January positive.

Tim Truebenbach

timt@tradingmarkets.com

P.S. You can find more analysis
from me at www.tradingmarkets.com.