Tons Of Names Setting Up — Here Are A Few

  • August 19, 2003
  • Tim Truebenbach

Don’t look now, but the market
has done THE two things I was
looking for and there has been money out there to be made. The Nasdaq
confirmed its latest rally yesterday with a nice 2.2% pop on heavier volume
than last Friday and Thursday.

 image src=”https://tradingmarkets.com/media/2003/Tim/tt081903-02.gif”
width=”418″ height=”348″ />

Yesterday’s solid accumulation was the first thing we
have been looking for. Tuesday’s action was even impressive as the indices
bounced off their lows to close well with volume coming in even heavier than
Monday.

image src=”https://tradingmarkets.com/media/2003/Tim/tt081903-01.gif”
width=”418″ height=”348″ />

The second all-important criterion
lies in the fact that there is leadership. Stocks are pushing through
resistance levels and putting up quite a fight against any sellers. E-Speed
(
ESPD |
Quote |
Chart |
News |
PowerRating)
is a recent example as it rose above 20.60.

image src=”https://tradingmarkets.com/media/2003/Tim/tt081903-03.gif”
width=”418″ height=”348″ />

Dynacq Int’l
(
DYII |
Quote |
Chart |
News |
PowerRating)
shows us that ESPD was not an isolated incident. 

image src=”https://tradingmarkets.com/media/2003/Tim/tt081903-04.gif”
width=”418″ height=”348″ />

The recent market correction has given many quality
companies time to re-establish sound price patterns. Hailing from the big-cap
group, Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) itself is looking great. If this name blasts through
35.79 on heavy volume it may continue its ascent toward all-time high over
$200. Of course, we cannot forget about the auctioneer eBay
(
EBAY |
Quote |
Chart |
News |
PowerRating).  This
company has been a solid performer since October and is not done yet.  It
showed some weakness when it traded at 99.74, but in two days’ time quickly
recovered most of its post-earnings release losses.

image src=”https://tradingmarkets.com/media/2003/Tim/tt081903-05.gif”
width=”418″ height=”348″ />

There is always a possibility that this market may rub
against resistance and fade away. The Nasdaq has to move through 1776.09 and
the S&P 500 has to get past 1015.35. Fortunately, all evidence of price and
volume points toward a successful break above these levels. There have been
tons of names setting up that can definitely lead investors on a nice run. The
summer is wrapping up, but the action may not be.

Back at you on Thursday,

 

Tim Truebenbach