Only A Matter Of Time
Wow!
What else can I say
after yesterday’s massive rally, but “Wow!” and also,
“I sure would like to see something break out and make some kind of move
before pulling back.”
The market has definitely showed up
for the game, so we can check that one off the list for now. Yesterday’s
buying spree came on volume that exceeded my wildest expectations. Now if I
could only find enough stocks successfully breaking out of sound bases that fit
the fundamental bill I require, I would be ecstatic.
Ryland Group
(
RYL |
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PowerRating) has held above
it pivot of 63, but the initial move came with little conviction as volume was
barely above average. Fellow homebuilder, Centex
(
CTX |
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on heavy volume, but the last two quarters of earnings growth leave a lot to be
desired.
Numerical Technologies
(
NMTC |
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PowerRating) can
be counted as a successful mover, but it lacks the company from stocks in its
own group…a key aspect to a successful breakout.
Utstarcom Inc
(
UTSI |
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PowerRating) made a
strong move through resistance of 24.55, but take a look back a couple of years
and this one is way off new highs.
Of the stocks on my watchlist, several
moved through their buy points:
(
BBBY |
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PowerRating),
(
SLOT |
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PowerRating) and
(
RMD |
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PowerRating). Only
Resmed
(
RMD |
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News |
PowerRating)) was able to do so on strong volume, and we know what has since
happened to that one (it’s not favorable to post a distribution day
immediately following the breakout).
I have not yet been convinced that
stocks are ready to be aggressively bought. Not only would I like to see better
consistency, but also I would like to see a few more quality companies setting
up. It is only a matter of time, and we have all the time in the world.
See you on Tuesday, when I have had a
chance to view the landscape as to what is setting up through my weekend
research.