These 3 Growth Stocks Are Holding Up Well
Believe it or not, this market could be worse. Based on a
few things that I am seeing, there are still glimmers of hope and my belief that
we are in a choppy environment remains true.
The Nasdaq just sold off about 10% from its recent peak,
even after establishing a confirmed rally with the follow-through-day concept.
The index has been plagued by the strengthening economy and possible Fed action
to raise rates in order to curb inflationary pressures. Often times the market
trades one way based on a rumor or event, only to reverse into the actual
event. This selling may be leading up to the Fed’s meeting next Tuesday in
which they may offer more clues as to the immediate direction of interest rates
that has the market so concerned.
There have still been a few names in the growth arena
hanging on and this isn’t usually the case in an all-out declining market.
^Next^
Ceradyne
(
CRDN |
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Chart |
News |
PowerRating)
and Bradley Pharma
(
BDY |
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Chart |
News |
PowerRating) have held up
fairly well during the recent selling.
Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating) is
within a few points of its recent high as volume has been extremely light into
this pullback following its stellar earnings report.
Utilizing margin and investing for large gains is just not
working in this market. Growth stocks have offered profits, but they need to be
taken. So many times, we have seen the market take a hit that pulls these
stocks down with it. Additionally, strong ETFs that follow the indexes and
leading sectors have been range-bound and offered opportunity into weakness.
Other than these ideas, it is best to play this market
very conservatively and take profits when they are there.