Wait For Opportunities In Growth
The averages posted a single day of distribution
yesterday…the first sign of trouble other than the lack of stocks
breaking out and pushing higher. Today as I write this, the lagging technology
sector has been trying to pull the market higher as the Naz is up just under 2%,
with the Dow and S&P 500 hugging the flatline.
Moving past the averages, there is very little to speak of. Krispy
Kreme
(
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PowerRating) attempted a break through a deep pivot of 42.06, but
volume was shy of the mark. This has been one of the favorites among growth
investors for two reasons: continued earnings growth and great doughnuts! The
stock has been consolidating in its current base since the move it made in
April/May of 2001.
Not only are there few, if any stocks breaking out, but there are very few
that are coming across my radar. Recent names that spring to mind are Christopher
Banks
(
CHBS |
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PowerRating) setting up in a base upon a base; Netbank
(
NTBK |
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PowerRating) is working up the right side of its multi-month base awaiting a
handle; Hollywood Entertainment
(
HLYW |
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PowerRating)
lacks the fundamental consistency I would normally like to see, but broke
through its resistance today; and JDA Software
(
JDAS |
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PowerRating) pushed a little closer to the high-end of its base on very light
trade today.
At this point, it’s time to sit back, relax and await opportunities in
growth that are apparently not present right now.
Have a great weekend!