The Best Part Of The Day
This wonderful
market continues. I think the
best part of the day is waking up to see the Dow down over 100 points, only to
mount a rally that brings it to being down only 80! The market isn’t even able
to mount a real rally. Fortunately, all of this was foreshadowed in the
distribution days we counted several weeks back.
Despite the market’s recent
downdraft, the Commercial Services-Schools group along with certain Defense
stocks have been holding their own.
Take Apollo
Group
(
APOL |
Quote |
Chart |
News |
PowerRating) and Corinthian Colleges
(
COCO |
Quote |
Chart |
News |
PowerRating) for example.
Engineered
Support
(
EASI |
Quote |
Chart |
News |
PowerRating) has
definitely been one of the strongest stocks in the market.
This is a time when it is still
important to screen the market for potential leaders of the next rally. Once a
week or so, we should all be looking for the strong companies setting up solid
bases. Eventually, the market will rally and within a week, confirm that rally.
This will give us the all-clear sign to buy stocks again. It will be important
to have a list of these stocks already prepared.
In the meanwhile, conserving our
capital and our confidence will yield greater returns down the road.
Until Thursday,