Nasdaq 3000?

  • July 27, 2005
  • Tim Truebenbach

Good Market!  We are seeing
solid action out of a market that has been lagging for the past couple of
years.  Are we going straight to NASDAQ 3,000? I don’t know, but I can tell
you that if we get past 2,200 we run into a blip at 2,328, but no real
resistance until 2,800-3,000.

If you don’t think it can
happen, then I will share the fact that the Dow did the exact same thing back
in 1935.  After an initial rally off the lows of 1932 (NASDAQ 2002), the
market paused until 1935.  After forming a nice handle, it proceeded to rally
almost to the equivalent of NASDAQ 3,000.  Due to chart constraints, we are
unable to show the similarity, but if you search the internet I’m sure you can
come up with an example.

We do need to get through
2,200 before this can happen, but it is a strong possibility.  There’s no
doubt that quite a few market participants have been shaken out since 2000. 
If the declining market didn’t get you, the past two years of boredom did!  We
currently have a number of leading sectors in the market: housing (still!),
retail and medical.  Consumer-related names continue on a strong path. 

Individual stocks are also
acting well and providing leadership.  Google (GOOG) still remains in
the driver’s seat.  The Chicago Mercantile Exchange (CME) is finding
buyers.  We also see old names like NVR and Pulte (PHM) just off new
highs. 

 

Enjoy the market and don’t
forget to follow up on leading names.

Tim
Truebenbach