The Best Thing You Can Do Now…

The market continues to work
off overbought conditions by consolidating gains rather than declining.  We
remain in a very healthy market based on price and volume action.

 

 

Internally, we are still
seeing healthy pullbacks out of growth stocks.  This is a great sign because
it allows them to work off overbought conditions and lead the market higher. 
Larger-cap blue chip names such as Apple Computer (AAPL) have consolidated in
similar fashion to the market with very little decline off of its peak.

 

 

^next^

Meanwhile, smaller-cap, high
fliers such as Travelzoo (TZOO) attempted a consolidation off its peak before
taking a quick hit to work off its overbought condition. 

 

 

Naturally, we are also seeing
everything in between these two extremes.  Telecom name Qualcomm (QCOM)
declined slightly along with Mobile Telesystems (MBT), in the same group.

 

 

The best thing to do right
now is focus on a list of 20-50 strong growth stocks and hone in on the best
performers over the next 3-6 months.  Use some of these names along with ETF’s
from leading areas of the market to comprise a portfolio.  As you see
opportunity to buy strong names, move money out of lagging stocks and into the
stronger names.  Regardless of what you invest in, it is important to get
money to work in this market based on all of the evidence we have seen thus
far. 

Enjoy your weekend!