Time Will Tell
OK, so the Dow
rallied back half of its huge drop. Good news? I don’t know, just
yet. I certainly didn’t think the rally would be that strong. But reality is
reality. Most stocks on the NYSE are still in poor technical shape, way below
resistance. Now the rubber will meet the road. Now it is more important to watch
the pullbacks. Watch their tone, watch their volume. I am still a skeptic. I
have always been taught that bear-market rallies are strong and tend to get
everyone excited. Time will tell, but I have no preconceived notions on whether
this is the bottom or not. I will let the market speak for itself in the coming
days and weeks.
The Nasdaq had a follow-through day yesterday. I would not give
it much weight just yet. Except for the oft-mentioned Semi-Equipment
area, which continues to show terrific relative strength in Techland, most Technology
stocks are still in poor shape. Certainly, there is a black hole when it comes
to breakouts in this area. Continued Patience!Â
But…there are finally some names to talk about. Not many and nothing stellar
— but I will take it.
In Gaming,
(
SLOT |
Quote |
Chart |
News |
PowerRating) and
(
SHFL |
Quote |
Chart |
News |
PowerRating) popped out
further. They are extended here. I mentioned them in my last
report. There are other names in this group to look at, but they need
pullbacks at this juncture.
(
DDS |
Quote |
Chart |
News |
PowerRating) looks to be the
“cream of the crop” in Retail right now.
(
LEN |
Quote |
Chart |
News |
PowerRating) is the same in the Homebuilders. Nice
breakout yesterday. I have thought this group was late stage but, so far,
hanging in there.
Alternative Energy is working because of the
debacle in California.
(
MDU |
Quote |
Chart |
News |
PowerRating),
(
CPN |
Quote |
Chart |
News |
PowerRating),
(
ORN |
Quote |
Chart |
News |
PowerRating) and a new name,
(
MIR |
Quote |
Chart |
News |
PowerRating)
have great technicals. Maybe a theme there.
Moving averages are 50-day
and 200-day SMAs.
Last but not least, my
good buddy, Kevin Marder is moving on. Kevin, you have been a port in the storm
to not only myself but to all your readers. Your passion for this business is
unparallelled. My best wishes for continued success in the future. If it wasn’t
for you, I would not be writing at TradingMarkets. I am forever grateful.