Stellar Move, Correction, And Back On Track For This Stock

The
Dow is clearly poised to close solidly above 10k
, but will the
Naz be able to hang onto the 2,000 level? Recently, volume has been very light
along with holiday trading standards.

image src=”https://tradingmarkets.com/media/2004/Tim/tt123103-01.gif” />

image src=”https://tradingmarkets.com/media/2004/Tim/tt123103-02.gif” />

Growth stocks have been
acting in a mixed fashion following Monday’s big rally. Yahoo!
(YHOO) broke out of a base and is hovering around $45. This
move follows internet strength which was first evident through Ebay’s
action as it rallied back up through its 50-day moving average.

image src=”https://tradingmarkets.com/media/2004/Tim/tt123103-06.gif” />

image src=”https://tradingmarkets.com/media/2004/Tim/tt123103-05.gif” />

If the Internets’
action is any indication, we may be headed higher as the New Year begins.
Genprobe
(GPRO) is another name that saw a stellar move through
a pivot point at 35.56. After correcting yesterday, it is right back on track
this morning.

image src=”https://tradingmarkets.com/media/2004/Tim/tt123103-04.gif” />

Most of the names I have
been watching have had strong support and held above or re-captured their 50-day
moving averages. A few have not, and I would like to see that change. Abaxis
(ABAX) is one example. Volume is a consoling factor because it has been very
light, but the stock has spent almost 2 weeks below support.

image src=”https://tradingmarkets.com/media/2004/Tim/tt123103-08.gif” />

New names like Scientific
Games
(SGMS) are still forming bases.

image src=”https://tradingmarkets.com/media/2004/Tim/tt123103-01.gif” />

Omnicell
(OMCL) provides another example of what the market often uses to launch another
rally.

image src=”https://tradingmarkets.com/media/2004/Tim/tt123103-09.gif” />

Ultimately, it will be important
to watch the market’s strength. As the New Year unfolds, make sure it
is rallying on heavier volume and declines come on lighter trade. If you are
taking new positions, let them prove their strength and hand you profits before
investing further.

Have a Safe and Happy New
Year and I’ll see you in 2004!

Tim Truebenbach

timt@tradingmarkets.com