The Time Will Come
Whipsaw
ways continue in this crazy market! Immediately after the
S&P 500 posted four days of distribution within a two-week time frame, the
Nasdaq followed through on a rally that began on 10/31, and the S&P 500
followed through on the rally that began on 11/1.
In the meanwhile, there are leading sectors,
leading industry groups, but it is very difficult to find a leading stock. First
Health
(
FHCC |
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PowerRating), First Horizon,
(
FHRX |
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PowerRating) and
Cytyc Corp
(
CYTC |
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PowerRating) have
been the most recent growth stocks to get beaten down. Additionally, there are
very few stocks setting up to break out that also sport the necessary
fundamentals.
Multimedia Games
(
MGAM |
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PowerRating) continues its
rare ascent. The stock managed a 4% gain yesterday on increasing volume, after
already posting a 28% gain after its breakout on 10/22.Â
Bradley Pharmaceuticals
(
BPRX |
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PowerRating), the other recent success story, appears to be facing a bout of
distribution over the past two days and it will be interesting to see if this
less-expensive company can hold up.
Wellpoint
(
WLP |
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PowerRating) managed a successful break
past a potential pivot yesterday, although volume was too light. The company also
falls a little shy of the EPS growth rates I would normally like to see.
Taro Pharmaceutical
(
TARO |
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PowerRating) continues to
build up the right side of its base. Laboratory Corp of America
(
LH |
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PowerRating) is
appears to be trying to complete a handle on its three-and-a-half month base.
THQ Inc.
(
THQI |
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PowerRating) looks to be attempting the handle portion on its
multi-month base. Other than a few other stocks hardly worth mentioning, there
are few prospects to follow in the current environment.
Despite the strength that we see in the
indices, the current environment requires a lot of patience for leading
candidates to reveal themselves. Successful growth stocks are still the ultimate
confirmation necessary for an ongoing bull market. So far, they have been
non-existent and this provides a clue to what the intermediate-term growth
investor should be doing right now. Don’t worry, the time will come and it
will be worth the wait!
Until Thursday,