Searching For Fuel
Last week’s rally is still alive in all three
indices. With today’s positive action and solid volume as I write this, we may very well be seeing a shift in institutional trading towards the
buy side. Yesterday’s rally produced the gains, but lacked the volume increase we would have liked to see. Today is a different story at noon EST.
If ample evidence comes in that the market is indeed with us, then it becomes time to find and buy strong companies breaking out of solid bases. Right now, I did not find very many stocks that I feel like getting into, but that doesn’t mean they aren’t going to begin popping up in the days and weeks ahead.
For now, a few stocks from the last rally are still holding strong, and a few more names have appeared on the horizon.
Autozone
(
AZO |
Quote |
Chart |
News |
PowerRating) is an example of a company working its way through a
five-month base. The company sports strong fundamentals and currently sits about 5% below its high and pivot, which are one
and the same.
After following Christopher Banks’
(
CHBS |
Quote |
Chart |
News |
PowerRating) recent success, I also spotted retailer Too Inc.
(
TOO |
Quote |
Chart |
News |
PowerRating). This stock has been working its way through over a yearlong base with a potential pivot at 32.10.
The next company I spotted (which
stood out more from their constant radio ads than anything) is
DR Horton
(
DHI |
Quote |
Chart |
News |
PowerRating). The stock has made a nice move along with most homebuilders, and has paused to form a 10-week base that still has the right side to complete.
Itron
(
ITRI |
Quote |
Chart |
News |
PowerRating) has been working through a high handle since it was unable to make a clean break from its previous base as the overall market ran into trouble. We’ll have to wait and see if this stock can mount another move.
If the market is able to emerge from the correction, then it will be important for investors to search for and identify leading companies that can fuel a rising market.
Until Thursday,