Red Bull
You wouldn’t know it if you were just fixated on the Dow
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INDU |
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500
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SPX |
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$COMPX |
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bull market going on in a small select group of issues for the past month.
Strong uptrends fueled by heavy volume has led some of them back within
striking distance of their March 2000 highs.
If you stayed in cash because of the range-bound action in the popular indices,
you might have missed the move in Redback
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RBAK |
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PowerRating).
RBAK broke out of a seven-month base in early-June. From
there it has moved up for the past five weeks along a steep trendline, breaking out
of brief consolidations along the way. Fueling the move was heavy volume kicking
in on the surge days.
The fact that a stock could move up so quickly through potential
overhead resistance says something about the positive psychology that can infect a
stock even when the major indices seem shaky. Redback and
other select Net Infrastructure stocks have this momentum. The biotechs have it
has well.
When you want action, don’t let the weakness in the major
indices keep you from ignoring positive patterns unfolding in individual stocks.
See you tomorrow,
Eddie Kwong