Things Just Look Solid
I really can’t think of any real negatives worth mentioning about the general market. Things just look really solid. The S&P 500
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have continued to act very well leading up to today’s Fed meeting.
So why aren’t all of us “I-T” guys and gals making some money? Where are the exciting picks I’m supposed to talk about in this column? Unfortunately, they aren’t there
— yet. After the drubbing the market took over the past two years, especially in growth, bases are still in the process of setting up. In
last night’s service, I told subscribers
that real conviction will require some time for stocks like
Global Imaging
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There have been breakouts lately. The only problem is that they have almost always been running into trouble in the early stage of their rallies. Some of these have presented some “tradable” opportunities that have yielded nimble traders some small gains, but this also leads to a type of thinking that we must be careful
of:
In the mid-1990’s I began booking many short-term profits of 1-2 points or
5%-10%. By 1997, I would look back at some of the stocks I had been “trading” and realized that they had advanced 50-100 more points, or
300%-400% after I sold them and never really offered another trade entry point after my sale. It is important to keep focused on the big picture and not what is happening day in day out.
Invision
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In the meantime, a few stocks that have been working on bases include
Avant
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Verisity
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five years of decreasingly negative annual earnings.
For now, continue to keep the major averages on your radar, day in day out, for signs of trouble or continued strength. As individual stocks begin to present themselves
en masse, you will be ready. Today, I am going to enjoy getting
one year older and hopefully a little wiser for the bull market that eventually awaits us.
Until Thursday,