The Best Way To Play This Rally

The market appears to be getting stronger,
but it still has a long way to go before I am convinced that it is moving
substantially higher.

 

 

 

MBT is still
hanging onto its recent breakout.

 

 

VIP is setting up to
possibly break through the top of a double bottom base which it already broke
out from.

 

 

In considering these two
names along with the strength of Qualcomm (QCOM), it appears that
telecom may be a good place to focus while the market holds on. 

 

 

The semis (SMH) have
not done a whole lot until they saw a decent move today. 

 

 

The market is technically in
a confirmed rally that may have a bit more room to go.  I am not overly
bullish because of the low-volume nature of how the rally began. 
Additionally, we have not seen a hoard of quality growth stocks breaking out
that are capable of leading us on a prolonged run…at least not yet.

 

At this point, it seems best
to play this rally for trading profits or not at all.  In the weeks and months
ahead, we will look and see if anything better starts to occur.