One Day At A Time
In case you have forgotten,
here are a
couple of charts that broke out a few months ago.
I go through this exercise because it
keeps me in check. It keeps me from buying with confidence all the wide and loose bases that are around in the growth
complex. Notice how tight the charts of Lennar
(
LEN |
Quote |
Chart |
News |
PowerRating) and Toll Bros.
(
TOL |
Quote |
Chart |
News |
PowerRating) were before they busted
out. Yes, there was a follow-through day in the NASDAQ. Yes, the volume was what
it should be. The problem is the third piece of the puzzle continues to be absent. There are just no quality breakouts in the growth stock arena. Any
that try get turned back in short order. Do you see anything that really looks like the previous charts? NOT EVEN CLOSE!
I am also not excited with the ease the NASDAQ was turned back at 3000.This area is the obvious new resistance.Â
The almost 200-point reversal
yesterday also gives me pause. Pullbacks are to be expected after the strong five-day move but this one is suspicious. My main
problem is that many stocks are breaking down after a follow-through day. HMM! I am just going to continue to play it one day at a time. I am not going to
force the issue. The market is a lot smarter than I am. If you must invest, do I
dare say that the TOBACCO group looks terrific? Â
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