Tomorrow’s The Big Day
Tomorrow’s
the big day! It is the first day I would look for confirmation of the
rally that began on 4/30 in the major indices.
The only major obstacle we have run
into thus far into the above-mentioned rally was yesterday’s distribution in
the Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating).
In any case, I will be watching out to
see if the market can follow through tomorrow, Monday, Tuesday or Wednesday with
a 2% gain on heavier volume than the previous day. After that, and only after
that, will I be looking towards individual stocks and breakouts at this point.
Recent breakouts have been lackluster
at best. Obviously, I am leaving out the leading homebuilding group that has
gone a tear of its own. In general, most breakouts have pushed past the pivot
point and wavered both above and below that line of resistance afterwards.
Chicos FAS
(
CHS |
Quote |
Chart |
News |
PowerRating) is attempting to reclaim its pivot of 37.35 today. The company has
stellar fundamentals including an annual growth rate of 65%.
DRS
Technologies
(
DRS |
Quote |
Chart |
News |
PowerRating) made the push through its pivot of 46.10 on
4/30, and is now facing the pullback that has occurred in so many recent
breakouts. The stock is pleasing technically, but lacks some of the fundamentals
I would normally like to see in candidates, i.e., growth rate is only 7% and ROE
is only 13%.
Over the next several days, keep a
close eye on how the major indices act. Prepare a laundry list of stocks that
look interesting to you if the market sways into the accumulation column.
Have a great weekend!