These Groups Are Producing The Strongest Names

The NASDAQ finally gave in to
the pressures of rising prices without a pullback!  Fortunately,
the index did so on lighter volume than the previous day.

 

 

Just after punching above its 200-day moving average for
the first time since early July, the NASDAQ could no longer sustain its rate
of ascent.  Before today, the past 7 sessions have been positive on the day. 
Over the past two weeks, we have seen overwhelming evidence of accumulation in
the broader market.

Individual stocks seem to be following the market’s
lead.  We have been seeing more and more growth stocks setting up in base
patterns and breaking out.  Some of the leading names took this opportunity to
digest gains and pull back as well.  MBT comes to mind as the stock is resting
against its 10- and 20-day moving averages.

 

Even Petroleum Development (PETD) stopped going up for the moment against
rising oil prices. 

 

Growth stocks have been emerging over the past week and some of them contain
leadership qualities that are capable of propelling them and the market much
higher.  Software, Telecom, Steel and Oil groups seem to be producing some of
the strongest names.  At this point, it is a great time to look at the market
for potential buys and limit purchases to the strongest technical and
fundamental names.

Enjoy your weekend!