Sitting Tight
I am currently “on the road,†and therefore will keep
today’s column brief as to what I am actually doing with the market today and
tomorrow.
Since the Nasdaq has not broken the low of the current
rally, which is about 1934, I am still looking for viable stock candidates to
purchase. The market is not doing
much but bouncing back and forth, and it has not been able to post up consistent
“up” days with strong volume. That
is okay because it may need this time to consolidate, and we must also be
reminded that it has also been unable to fall apart on increasing volume, a good
thing for us bulls.Â
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As I look for strong companies setting up, I have not
been able to find very many. This
is a sign to sit tight and not force trades. I did notice that Laboratory Corp.
(
LH |
Quote |
Chart |
News |
PowerRating) went through its pivot point of
88.13, but lacked volume to support the move.
Right now the market could tip its hand either way, so be
on the alert for profitable opportunities, but also be careful of weak
breakouts, or lack of quality setups. Play
new purchases very tight…by this I mean consider using less than a full
position and keep a stop-loss of no more than 8%.
Even though I’m away from the office, I’d encourage any
feedback or questions, as I will be checking my e-mail, and I’ll be back to my
regular capacity on Tuesday!
Until Tuesday,