The market: healthy and constructive
Timothy J. Truebenbach is the President of True Capital Management and
general partner of True Capital Partners LP, a hedge fund. He uses a
disciplined model that trades on the intermediate-term time frame. For a
free trial to Tim’s Nightly Stock Analysis Report
We talked about this point in last
night’s
trading service and I’ll repeat it right
here: the market is acting in a healthy and constructive manner. Yesterday’s
action, for example, saw the NASDAQ retrace a small amount and volume came in
less than the previous session and below-average. This is a small sample of what
the market has been telling us over the past few months.
The market’s leadership remains strong as well. New stocks are
setting up and breaking out, while primary leaders pullback and consolidate new
base patterns.
Syneron Medical
(
ELOS |
Quote |
Chart |
News |
PowerRating) broke out on heavy volume in today’s session
after forming a solid handle for the past couple of weeks. The company displays
excellent earnings and sales growth and comes from a strong group.
Google (GOOG) made a very nice run for us shareholders and is now due for
a pullback. The stock is doing just that, but in my humble opinion does not
appear to have put in any kind of significant top yet. When this stock is ready
to resume its ascent, keep an eye out for heavy volume in rallies versus what we
are seeing right now: heavy volume in declines and light-volume rallies.
Biotechs are doing their best to catch investors and traders looking the other
way while they rise. Genentech
(
DNA |
Quote |
Chart |
News |
PowerRating) has snuck its way to $100 and is
the clear leader in the group. Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating) is in the midst of
forming a cup and handle base pattern.
There is a lot going on out there and it will pay the most to hone in on the
strongest groups and stocks. The NASDAQ is our clear leading index in this
confirmed rally.
Have a Successful Week!
Tim
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