Use This Filter When Sorting Through Names
The major averages have been nothing but net! After a brief, 1-day bout with distribution, the Nasdaq has produced
consecutive accumulation days. It has traded higher on heavier volume than the previous
day.
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Earlier this week, we
were not seeing very many breakouts in the growth sectors. As the week has progressed, so have the
breakouts. Initial names like eCollege.com
(
ECLG |
Quote |
Chart |
News |
PowerRating) and TASER
(
TASR |
Quote |
Chart |
News |
PowerRating) have been joined by
United Online
(
UNTD |
Quote |
Chart |
News |
PowerRating),
Sandisk
(
SNDK |
Quote |
Chart |
News |
PowerRating), USANA
(
USNA |
Quote |
Chart |
News |
PowerRating), and
Sina
(
SINA |
Quote |
Chart |
News |
PowerRating).
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src=”https://tradingmarkets.com/media/2003/Tim/tt091803-02.gif” width=”381″ height=”326″ />
Now that many have
broken out successfully, it will be worth paying attention if they can
continue higher in a non-choppy fashion. As you are sorting
through the names setting up and choosing which ones to take, use volume as a clue. If one
has heavy volume going into the breakout, it may be
more appealing.
After spending most of August
and early September consolidating, the major averages
seem to be right on track at this point. Usually, when the
market gets too good, a pullback may be coming. Use stops
and historical precedent as a good guide for when to take profits and when to
give a profitable holding more room to run.
Have
a Great weekend!