The next few days are important, here’s why
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
click here or call
888-484-8220 ext. 1.
It seemed fitting to see the major indexes
positive by Wednesday’s close. Monday was about as dismal as could be and it
seemed there was no hope. This is usually the feeling right before a bounce, or
market bottom.
Unfortunately, there are not too many prospects to go after at this time. Many
of the leading names that were commodity-based plays will need significant time
to recover. Drew Industries
(
DW |
Quote |
Chart |
News |
PowerRating) provides a typical example as the
stock pushed further beneath its 200-day
Other names such as Hansen Natural
(
HANS |
Quote |
Chart |
News |
PowerRating) are fighting to hang in
there, even though professional selling is evident on the price charts.
Wednesday marked the first day of a new attempted rally in the indices. It will
be important to see a confirmation in the fourth to seventh day and then look
for new stocks setting up to purchase.
Patience is a good thing right now and following a well-scripted plan is
important.