Short And Sweet
The market is beginning to show
some wear and tear after its recent rally. We may be looking at another decline in heavier volume today.
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For the most part, that means very little to
us. It’s not like we’re sitting long a ton of stock from all of the
opportunities we have seen. Although
Amerigroup
(
AMGP |
Quote |
Chart |
News |
PowerRating) doesn’t have the
EPS growth that I would normally like to see, it is another breakout that
reflects the recent action in stocks. It
tried to move through its pivot of 34.39, only to reverse and trade lower.
 
If we do see another distribution day, it is just one more
reason to proceed with caution as that would bring the tally to two within the
last three trading days. As I stated
in earlier columns, there still haven’t been too many stocks to go after,
and that alone will keep us out of trouble. If the market is able to find firm footing before we rack up
four or five distribution days, it will still be important to watch for solid companies
setting up in sound base patterns. If
not, preservation of capital will be important because inevitably, we will be
able to produce solid profits that come with the next Bull Market.
If there are any questions, please let me know and have a
great weekend!