These 2 Stocks Seem Bound For The Heavens

  • April 6, 2004
  • Tim Truebenbach

Question: What do I usually recall
happening after the market gives a clear-cut signal of its direction?

Answer: It does just the opposite
short-term!

The major indexes have made little progress since
handing us a strong follow-through day last Friday. In fact,
the Nasdaq even threw in what was technically a distribution day today, but
it was below-average

image src=”https://tradingmarkets.com/media/2004/Tim/tt040604-01.gif” />

image src=”https://tradingmarkets.com/media/2004/Tim/tt040604-02.gif” />

Many quality growth companies have been making headway over the past couple
of weeks. Other than the market’s newfound accumulation, breakouts and
strong growth moves have provided another confirmation that we are probably
moving higher over the next few months.

We have seen stocks like Qualcomm (QCOM) power higher.

image src=”https://tradingmarkets.com/media/2004/Tim/tt040604-03.gif” />

Sina (SINA) and other companies with strong earnings like Netflix
(NFLX) have held support as we enter earnings season.

image src=”https://tradingmarkets.com/media/2004/Tim/tt040504-04.gif” />

There have been some very strong breakouts that have continuously followed
through. Such examples include early names like Eon Labs (ELAB)
and Ameristar Casinos (ASCA)…

image src=”https://tradingmarkets.com/media/2004/Tim/tt040604-05.gif” />

…and have been followed up by the likes of Sanderson Farms
(SAFM) and others.

image src=”https://tradingmarkets.com/media/2004/Tim/tt040604-06.gif” />

^next^

Then of course we have the barn-burners. Two stocks that seem bound for the
heavens and have not looked back of course include Taser
(TASR) and Research In Motion (RIMM).

image src=”https://tradingmarkets.com/media/2004/Tim/tt040604-07.gif” />

For the most part, it seems as though the best thing to do is identify some
of the strongest fundamental companies out there and pick your spot. If you
see a nice base formation, then enter at levels or breakouts that are comfortable
to you. This market has been choppy, but one thing it continues to do is move
higher and take most stocks with it.

Until next time,

Tim Truebenbach

timt@tradingmarkets.com