Start Me Up Then I’ll Never Stop
Explosive moves happen. Not often. That’s why it pays to be ready for
anything. It’s hard to do this in disciplined fashion day in day out. But you
have to or else you miss out on the big opportunities. Yesterday, the pessimism
was at an extreme and traders were expecting more of the same Wednesday. Traders
became lethargic. They slept late today. But the market just loves to befuddle
the majority.
Stocks Editor, Loren Fleckenstein took note of this yesterday:
I went to a neighbor’s house yesterday and noticed sitting
on a chair — Time magazine. The cover story had a picture of a frightened
family along with the headline: “How to Survive the Coming Slump.”
Magazine covers are sure good contrary indicators.
While many pundits had been predicting a rate cut, hopes seem to
fade on Friday and Tuesday’s massive tankage. Nobody can really predict these
things, so you simply have turn off the T.V. and do your
homework every night.
There was plenty of solid action
in the old glamours such as:
(
SDLI |
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Chart |
News |
PowerRating)
up 39%,
(
CHKP |
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Chart |
News |
PowerRating) up 30%,
(
BRCM |
Quote |
Chart |
News |
PowerRating) up 40%,
(
JNPR |
Quote |
Chart |
News |
PowerRating) up 29%, and
(
NEWP |
Quote |
Chart |
News |
PowerRating)
up 31% — to name a few. If you had quick reactions, you benefited from some of
that action.
On the other hand, maybe you’re not that quick. Or maybe your
conservative like me and you want stick with the main trend. Nothing wrong with
that because merely sticking with your game plan gave you some decent gains.
Temple Inland
(
TIN |
Quote |
Chart |
News |
PowerRating), highlighted in my Chart
of the Day on Tuesday bounced higher off its 50% retracement, 20-day moving
average and its Dec. 22nd breakout level.
Another favorite of mine:
Apria Healthcare
(
AHG |
Quote |
Chart |
News |
PowerRating) had a similar set up, bouncing higher
off its 20-day moving average and its 50% retracement.
Okay — so BRCM was up 40%. But how you would like to be in stocks
like AHG and TIN every single day?
Rock on,
P.S. Today’s Naz blast off was launched off the lower end of the band pointed out in
Friday’s Chart of the Day. Homework pays.