Keep This In Mind Before Entering A Position

  • August 21, 2003
  • Tim Truebenbach


“It may not take long before the market’s tone changes and underlying buying becomes more evident. At that point, leading stocks
will probably begin poking their heads up quite quickly.  It will pay to take
notice when this starts happening.”


I said
this on

August 7 and the market has proved this correct. 
Stocks like

Ebay

(
EBAY |
Quote |
Chart |
News |
PowerRating) have moved back “rather quickly.”


image src=”https://tradingmarkets.com/media/2003/Tim/tt082203-01.gif” width=”385″ height=”328″ />

Very little
damage has been done and now we are starting to see some very solid setups
moving higher. We are also seeing very solid action out of the major indices
based on price and volume.  The S&P 500 and Nasdaq both gave us another
accumulation day today.


image src=”https://tradingmarkets.com/media/2003/Tim/tt082203-02.gif” width=”385″ height=”329″ />

Initiating
positions is the right thing to do right now. When you see a stock set up like

Gilead
Sciences

(
GILD |
Quote |
Chart |
News |
PowerRating) it is a good idea to consider moving in at the appropriate point
where risk is lowest.  In this case it is probably around 70.61. 


image src=”https://tradingmarkets.com/media/2003/Tim/tt082203-03.gif” width=”381″ height=”323″ />



Foundry

(
FDRY |
Quote |
Chart |
News |
PowerRating) is clinging to its pivot, or buy
point of 18.61 as of today’s close.  This is another example of a stock that I
have had my eye on for over a month now.


image src=”https://tradingmarkets.com/media/2003/Tim/tt082203-04.gif” width=”382″ height=”324″ />

There is no
doubt that some stocks are feeling the pressure of the widely followed
breakout points. Thinly-traded

Kronos
(
KRON |
Quote |
Chart |
News |
PowerRating) made a big move
above 59.60, only to fall back below 59 by the close.


image src=”https://tradingmarkets.com/media/2003/Tim/tt082203-05.gif” width=”385″ height=”329″ />

We are
starting to see recent market leaders such as
UT
Starcom

(
UTSI |
Quote |
Chart |
News |
PowerRating) push to new highs following the recent market correction.  This
stock bodes excellent fundamental, or financial
traits and constant accumulation.


image src=”https://tradingmarkets.com/media/2003/Tim/tt082203-06.gif” width=”382″ height=”325″ />

Not invested
or not finding solid prospects?  That is alright because this market will
probably continue to produce them in the upcoming weeks and months ahead. Just
hone in on some of the leading groups: Semis, internet stocks as well as
medical names.  Always use proper money management and let positions work
before moving in with more capital. 

Finally,
decide on how you prefer investing and select the time frame that is
appropriate for you. Decide whether to buy a stock and blow out of it for a
quick, lock-in profit; or possibly look to hang onto it for a bigger,
multi-week or multi-month move. The important point is to keep these things in
mind before entering into a position.

Have a great
weekend,


Tim Truebenbach