Now Is A Great Time To Put Capital To Work–Here Are Some Ideas

The
stock market remains in a confirmed uptrend.  Trading action over
the past couple of days has seen the market consolidate recent gains.  Volume
appears to be declining in the drops and heavy into rallies.

 

 

 

The latest pullback in the
market has also allowed strong growth stocks to rest following initial moves
higher.  MBT and Vimpel Communications (VIP) are examples from
the telecom industry alongside Qualcomm (QCOM).

 

 

Yahoo! (YHOO) reports
earnings as I am writing this.  This stock has also spent the last few days
digesting gains it achieved since late-August as the market was finding its
footing.

 

 

This rally has presented such
a broad group of leadership that it is tough to single out any one group or
sector.  Internets (HHH) have been sound and one stock that has put in very
little time to rest following its successful IPO is Google (GOOG).
 Anyone waiting for a pullback to enter into has only seen 1-2 days at the
most of declines before racing higher.

 

 

Software (SWH), Retail (RTH)
and of course oil (OIH) remain some of the stronger groups I have seen.

 

 

With the market displaying
strong follow-through action and supporting strong moves out of growth stocks,
now is a great time to put capital to work.  We have spent the last year going
virtually nowhere in the indexes with choppy action.  It looks like we may be
resuming the uptrend in the NASDAQ that began from the bottom in October of
2002.  With that in mind, investing in stocks is probably the best way to go
from here.