Watch these 3 sectors
Timothy J. Truebenbach is the President of True Capital Management and
general partner of True Capital Partners LP, a hedge fund. He uses a
disciplined model that trades on the intermediate-term time frame. For a
free trial to Tim’s Nightly Stock Analysis Report
The market is following our script perfectly!
If you have been reading this column for the past couple of months you
are happily long the stuff that has risen the most. We have been speaking of the
NASDAQ moving through 2,200 as our biggest obstacle.
The index pushed above this all-important mark in Thursday’s trading. The
closing price market the NASDAQ’s highest close since June of 2001! This means
that if you bought anything related to the NASDAQ since June of 2001, you are
sitting on a profit. The best thing about this is there is very little overhead
supply for 13-25% on the index. Overhead supply represents investors that paid
higher prices and as they get even they sell and cause downward pressure. It is
a great thing to have this much leeway before that occurs. To translate, if the
market dips…BUY!
Furthermore, we have expanding leadership in individual sectors and stocks.
Biotech remains one of the strongest, but Retail and Semiconductors have come on
strong as well.
Chicago Mercantile Exchange
(
CME |
Quote |
Chart |
News |
PowerRating) and Google
(
GOOG |
Quote |
Chart |
News |
PowerRating) continue their
ascent, but are being joined by many other names. Tradestation
(
TRAD |
Quote |
Chart |
News |
PowerRating) hails
from one of two leading groups (internet e-commerce and financial) and is
probably finding buyers from both as it broke out of a longer-term base.
We recently launched several new products at True Capital Management, and all of
them are focused on one thing: keeping investors focused on a goal. Too many of
us invest our money with no real focus in mind and as we all know the stock
market can offer plenty of distractions. You can use this lesson to use the
stock market, specific sectors and individual stocks for what they are designed:
investment vehicles to fit into your investment plan and accomplish your goals.
For the most part, earnings season is behind us and now the market is honing in
on what lies ahead for the economy over the next six months; all-the-while
considering what the new Federal Reserve chairman has said and will most likely
do. Remember, the stock market is a leading economic indicator, so it will most
likely shape our thinking rather than us bringing our economic and political
opinions to influence the stock market. The market remains in a confirmed
uptrend marked by the follow-through day on 10/19 when the NASDAQ closed at
2,091.
Enjoy your trading and feel free to email me questions or comments:
Comments@truecapitalmanagement.com
Tim Truebenbach