The Interesting Thing About This Market

The
NASDAQ showed us that it remains under accumulation today.  The
index also displayed its leadership capabilities that I have been talking
about.

 

 

 

As I have been looking back
at the NASDAQ companies versus NYSE-related companies; 4-letter symbols versus
3-letter symbols, so much more growth potential and leadership capabilities
stem from the NASDAQ.  We are also seeing this index repeating history that
the American stock market saw in the Dow Jones Industrial Average from 1929 to
about 1937.  The NASDAQ lies around the timeframe of 1934-35 as the Dow had
just finished consolidating its first rally off the bottom and resumed the
uptrend to the tune of 100%+.

 

Back to the present market. 
One interesting thing to note was how the semis (SMH) did not fall apart and
are now actually trading above their 50-day moving average.  This group has
foreshadowed NASDAQ strength since the bottom of October, 2002.

 

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Growth stocks have provided
solid leadership coming out of the recent consolidation.  We are seeing many
stocks from different sectors lead this market higher.  Names to continue
watch include the internets: EBAY, Google (reporting tonight) and Travelzoo (TZOO);
telecoms: Qualcomm (QCOM), MBT and Vimpel (VIP); oils: Petroleum Dev (PETD),
Ultra Petroleum (UPL) and OIH’s; retails: Urban Outfitters (URBN), Dick’s
Sporting Goods (DKS) and RTH’s and finally gaming (my personal favorites to
watch from here in Las Vegas): Station Casinos (STN) and Shuffle Master (SHFL).

 

 

 

 

 

 

 

In the current market, it
will be important to continually monitor the daily price action of quality
stocks I have been talking about as well as the NASDAQ.  This market has been
offering buying opportunities along with rotating leadership.  We appear to be
moving higher over the next few months to a year and now is a great time to
put capital into the leading areas of the stock market.