Looking For Follow-Up
Price and
Volume, Price and Volume! These are the only two words that really
matter, when all is said and done. I am referring to the best way to analyze
the health (or sickness) of the overall market. Yesterday’s action saw a very
nice close that was contrary to what has been occurring over the past few days.
The indices were able to rally off the lows and finish near their highs
alongside very heavy overall volume.
Wednesday marked the first day of a
potential rally. Since it is too difficult to tell if the rally is for real
after only one day, we will be on the lookout for a follow-up rally day
beginning next Monday. Meanwhile, it’s time to look for stocks, just in
case.
Breakouts are still running into some
resistance. Amerisourcebergen
(
ABC |
Quote |
Chart |
News |
PowerRating) attempted a break through its pivot point of
79.80 and has since pulled back below it.
Chattem
(
CHTT |
Quote |
Chart |
News |
PowerRating) broke out of a short
base in its seventh week. Unfortunately, if this is the kind of setup we are
looking at out there, we may not have a lot to do. Not only does this base fall
short of the seven-week minimum I like to see, but it rallied off its lows to the
breakout; weak holders would not have had a chance to sell that quickly.
Province Healthcare
(
PRV |
Quote |
Chart |
News |
PowerRating) broke
through its pivot of 26.25 on June 10, only to find itself trading around that level
this morning.
Sierra Health Services
(
SIE |
Quote |
Chart |
News |
PowerRating) had
established a flat base and a buy point of 20.05. It went made it to 20.55
before turning tail and settling in just under its pivot this morning.
My weekend will be spent getting a
good feel for what prospects await a rally confirmation in the overall market. I
am going to be searching for solid stocks that offer profitable opportunities if
we get a confirmation in the overall market. The stocks I mentioned above have
not been all that impressive, but if the weight of the market gets behind a
stock, it can be a whole different story.
Have a great weekend,
Â