These Companies Are Firing On All Cylinders Right Now

  • March 30, 2004
  • Tim Truebenbach

The
market has tried its best to keep us guessing
every step of the way. This all began on March 24 as the Nasdaq started shifting
gears in a positive way. The index closed positive on slightly higher volume
than the previous session. This occurred again after a large rally the next
day, although volume was only slightly above-average….an interesting side
note after such a large rally.

image src=”https://tradingmarkets.com/media/2004/Tim/tt033004-01.gif” />

image src=”https://tradingmarkets.com/media/2004/Tim/tt033004-02.gif” />

One thing that is the most
important to note is we have again started to see some underlying institutional
strength in the indexes. I believe we saw the rally produce a follow-through
day on Monday, but again it becomes confusing as the volume was below-average.

The market has given the
all-clear that a new uptrend may be under way, but by historical standards it
has also tried to keep everyone looking the other way. Bull Markets usually
climb a wall of worry.

^next^

The next best thing to focus
on for clarity becomes the action behind quality growth companies. These seem
to be firing on all cylinders right now. Eon Labs

(
ELAB |
Quote |
Chart |
News |
PowerRating) and Ameristar Casinos

(
ASCA |
Quote |
Chart |
News |
PowerRating) a hometown stock for me, were two of the first names to break out
and advance higher. ASCA has already managed a 20% gain since its breakout,
which is usually an indication of real strength.

image src=”https://tradingmarkets.com/media/2004/Tim/tt033004-03.gif” />

image src=”https://tradingmarkets.com/media/2004/Tim/tt033004-04.gif” />

Both of the above stocks
broke out before the follow-through day of 3/29. American
Pharma
(
APPX |
Quote |
Chart |
News |
PowerRating) has been in the top echelon since last March.
Current quarterly earnings have started to lag what I prefer, but the stock
broke out of a multi-month base on the follow-through day of 3/29 and has followed
through itself.

image src=”https://tradingmarkets.com/media/2004/Tim/tt033004-05.gif” />

Accredited
Lenders
(
LEND |
Quote |
Chart |
News |
PowerRating) has managed a strong move out of a double-bottom
base formation accompanied by heavy volume.

image src=”https://tradingmarkets.com/media/2004/Tim/tt033004-06.gif” />

I mentioned that this very
company that I am writing for, Yahoo!

(
YHOO |
Quote |
Chart |
News |
PowerRating) looked particularly strong last week and it has continued higher
and broke out of a double bottom base as well today.

image src=”https://tradingmarkets.com/media/2004/Tim/tt033004-07.gif” />

^next^

Internet
stocks appear to be some of the strongest performers out of the gates,
and I can’t say how many times we have heard that one before. I am also
noticing other names in medical
and gaming
sectors. The growth stocks and sectors appear very willing to lead the
market as we head into earnings season.

Overall, this correction
may be wrapping up while trying to keep us looking the other way. Friday’s
unemployment report should shed some light on the market and I strongly suggest
watching price and volume very closely. Hopefully, we will continue our pattern
of higher-volume rallies and lower-volume declines in the Nasdaq.

Until next time,

Tim Truebenbach