So Far, So Good
My Number Two
motto has always been: The
fundamental reason that a stock goes up is growing earnings — the stronger, the
better; the longer, the better.
The earnings that are being reported continue to be less than stellar. That’s
why I always refer to and give more weight to my Number
One motto… and that’s why I am a technician first.
Now back to our regularly scheduled program.
At this juncture, I believe it is vital to pay less weight on the indices vs.
its individual stocks. Yes, the Nasdaq held important
support at the 50-day line.
Yes, the tone continues to be constructive… but
(
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(
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(
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(
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Past leaders continue to trade with wide-and-loose patterns and every growth
name that has tried to break out, so far, has failed. This is not a symptom of a
market with real leadership.
The Dow and S&P 500 continue to hang in their respective trading
ranges. I would be watching certain support levels. If they break, trouble could
be ahead. So far, so good. The Dow at 10,460 and then 10,300.The S&P at
1320-1330.
There are places that are showing nice setups. Not my favorite areas in this
world, but good technicals nonetheless.
Marriott
(
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(
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(
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strength.
There are other stocks in this group that are doing well. I urge you to take a
look. I have been asking myself how these stocks are going up if we are going
into recession. If you believe market action is a great forecaster — and I do
— then their strength may mean better times ahead. Â