These Stocks Are Breaking Out Of Base Patterns

• September 28, 2004
• Tim Truebenbach

Support seemed to come in and hold the major
indexes above their respective 50-day moving averages on Tuesday.

 

 

We seem to be in a very
uncertain market.  We have seen both accumulation and distribution on all of the
major indexes, but nothing overwhelming.  Growth stocks have been breaking out
of base patterns, but the odds of success have not been that high.  Petroleum
Dev (PETD) is the only stock in this market to achieve a 20% gain in less
than four weeks.  This indicates a potential leader, but in this stock’s case it
is no wonder with oil rising as it has been.

 

 

Breakouts have been rising and
falling with the current days’ action in the market.  If we see overall
declines, the growth stock action is weak.  If we get a stronger day like today,
we see names like Research in Motion (RIMM), Vimpel Comm (VIP),
Carbo Ceramics (CRR) and Dick’s Sporting Goods (DKS) rise.

 

 

This market is for aggressive
traders that are nimble.  If you have a profit it has been prudent to take it. 
If you are conservative and looking to capture the next big move, I am not
saying this isn’t it, but we definitely need to see better confirmation that it
is.  Otherwise, I would watch this thing from the sidelines. 

The semis (SMH) have led the
market for the past couple of years and this rally may be no different.  Right
now, they stand just off the lows set in August and early September.

 

 

Inevitably, this market will
offer prolonged profits with great odds for success.  From what I have seen,
this is just not that time yet.

Tim Truebenbach