NASDAQ: target 2200+
Timothy J. Truebenbach is the President of True Capital Management and
general partner of True Capital Partners LP, a hedge fund. He uses a
disciplined model that trades on the intermediate-term time frame. For a
free trial to Tim’s Nightly Stock Analysis Report
You could almost see a small correction
coming as the NASDAQ bumped up against the 2,200 level over the past few
sessions and was unable to eclipse it.
The index has run up from its 10/13 low with only brief
pauses at minor resistance. After almost a 9% move, the index was due for a
breather before venturing above heavy resistance at 2,200. We have been
viewing the NASDAQ
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significance with the Dow of the 1930’s. For this reason, we have put more
weight into its action than any of the others. The market remains in a
confirmed uptrend and is therefore worth buying into any weakness, such as
what we are seeing.
The market’s leadership remains quite strong with a number of groups showing
nice activity. Internet stocks, financial issues, biotech and various retail
situations are among these leading groups.
As PPI numbers and retail sales data were released we saw
that inflation is tame and the economy continues to steam ahead. This is the
perfect scenario for the market as long as it can continue. The new Federal
Reserve chief, Mr. Bernanke reiterated the Fed’s current stance which should
sit well with the market as long as he actually follows it. Since the market
is acting well, it is prudent to continue to put money to work and ETF’s such
as
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RTH |
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consider into pullbacks.
We continue to look ahead in anticipation that the NASDAQ
will eventually get through 2,200 and continue on a sharp, prolonged move that
we can substantially profit from.
Good Trading!
Tim Truebenbach
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