This Group Is Finding Solid Holiday Support

  • December 18, 2003
  • Tim Truebenbach

The
buyers may very well be back! The
Nasdaq and NYSE both rallied on heavier volume, with the Naz posting almost
a 2% gain.

image src=”https://tradingmarkets.com/media/2003/Tim/tt121803-01.gif” />

Obviously, this rally is
no guarantee we are going to see higher prices in the market for a prolonged
period, but it should motivate some heavy research. Semis
(
SMH |
Quote |
Chart |
News |
PowerRating) shone in
the rally, along with retailers. Names like Urban Outfitters
(
URBN |
Quote |
Chart |
News |
PowerRating) and
Dick’s Sporting Goods
(
DKS |
Quote |
Chart |
News |
PowerRating) have found solid support and buyers going
into the end of the holiday shopping season.

image src=”https://tradingmarkets.com/media/2003/Tim/tt121803-02.gif” />

We also saw positive action
out of the group as a whole. The Retail Holders
(
RTH |
Quote |
Chart |
News |
PowerRating) were able to set a
higher low at 85.62 on massive volume on 12/16.

image src=”https://tradingmarkets.com/media/2003/Tim/tt121803-03.gif” />

This is a good time to watch
growth stocks that have seen heavy selling in recent weeks. In no time at all,
they may be ready to emerge from new base formations. Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) is
one example I have mentioned before. It will be important to see how it acts
around the 50-day moving average as it has been pushing higher on lighter volume.

image src=”https://tradingmarkets.com/media/2003/Tim/tt121803-04.gif” />

Heading into the weekend,
time will be spent looking for new names setting up in sound technical patterns.
These companies will need strong earnings and sales growth and come from leading
groups.

Tim Truebenbach

timt@tradingmarkets.com