Three Stocks Showing Strength
The market has seen some
fairly unimpressive action over the past couple of weeks. Technically,
today’s trading yielded a follow-through day on the NASDAQ for the rally that
began on 5/18.
The current glaring positive
about this move was that it puts the NASDAQ back above its 200-day moving
average, but just shy of its 50-day moving average. Volume was very poor
given the market’s rally. It appears to be just average, which is not what
one would want to see after a 2.2% move in the index.
Growth stocks have been acting the same as the
market: they have been rallying. I cannot really point to one single name
that is actually a leadership stock, but I can say the market is holding that
title. Growth names such as Yahoo!
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and Qualcomm
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Several other growth stocks
have set up to break out and some have succeeded, although in choppy fashion.Â
Digital River
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point of 30.65.
During today’s strong rally,
growth stocks were mixed in their breakout attempts. Mantech
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below its buy point of 27.28, but eResearch
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its point at 35.72.
For now, the market appears
bent on moving higher. How long this will last is anyone’s guess. I am not
impressed by the poor volume and lack of quality leaders that I am seeing.Â
For now, the best thing to do is hone in on quality companies in very strong
industries. If you find profits, do not let them get away because this market
has a lot of proving to do before I would say we are home free.
Tim Truebenbach