There It Is!
There
it is! Tuesday’s market finally
saw an end to the good accumulation/distribution we have been
seeing over the past few weeks. We saw
the Dow, S&P 500 and Nasdaq all decline on heavier volume than Monday.Â
NYSE volume actually came in above-average.
In my
service the other night, I went into depth about my perspective on the
current market. I think we have
suffered a long, grueling bear market and that each day it continues means the
next Bull will be that much better. Towards
the end of the previous Bull Market, I found myself no more than 25%-50%
invested because I kept getting knocked out of stocks by my sell rules.
As it turned out, many of the names I owned had launched into climax
runs. Through the first quarter of
2000, I was actually disappointed when I continually saw the market rise.
I knew it needed a consolidation from the frenzy, because that would be
healthy action. It did not come
until it was too late and every bit of speculation was built into prices.
Now we are at the same point, but in reverse.Â
I have compared this bear market to that of 1929 for two primary
reasons: the severity of the decline in the Nasdaq and the looming war with
Iraq and the war on Terror (as compared to the European tensions before World
War II).
Each weekend I go through my research that I have done for almost 10 years now
and I am still seeing stocks setting up in the growth sector.
Of course I will not buy them until I see a follow-through day, but
inevitably one will come.Â
Career Education
(
CECO |
Quote |
Chart |
News |
PowerRating)
continues to set up. The company has
solid, double-digit sales and earnings growth.Â
Technically, for the past six weeks, the stock seems to be waiting for
the market to snap into shape.
Â
Abercrombie
and Fitch
(
ANF |
Quote |
Chart |
News |
PowerRating) has been consolidating around its 50-day moving
average as it makes its way higher. Growth
rates could be better, but it is good to see another name holding steady.
 
Â
Next we have dear old Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating). The stock is not near an
all-time high, but it has been making its way higher despite the market.
I still use this company and its popularity is still exploding as seen
through its most recent quarter’s EPS growth of 100%.Â
From where it is at right now, I would like to see a consolidation to
form before attempting a purchase. This
stock may possibly form a handle or flat base from here.
Not every day or every week
is opportune for making money and it is important to have goals and objectives,
with every investor and trader. Find a
strategy that works for you and can accomplish those goals and have the
discipline to stick with it.Â
Right now is a very important time to focus on capital preservation for
the investment philosophy I practice. Until
I see my four primary components (market, sectors, groups and stocks) all fall
in line, I will push this issue. Inevitably,
as with any successful, proven strategy, the time will come to use the capital
to make money.
Until Thursday,