Watch This Group Coming Back To Life
The
major averages have had quite a run through the end of December
and early January. Tuesday’s trading reminded us that there is always
a reason to be cautious in the stock market, because volume came in heavier
as the indices closed down on the day. This usually indicates professional selling.
src=”https://tradingmarkets.com/media/2004/Tim/tt011404-01.gif” />
src=”https://tradingmarkets.com/media/2004/Tim/tt011404-02.gif” />
Growth stocks were somewhat
mixed. Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) gave
up some ground, but volume acted favorable by ending lighter than the previous
day.
src=”https://tradingmarkets.com/media/2004/Tim/tt011404-03.gif” />
Netflix
(
NFLX |
Quote |
Chart |
News |
PowerRating) edged higher on increasing volume, along with World
Acceptance
(
WRLD |
Quote |
Chart |
News |
PowerRating).
src=”https://tradingmarkets.com/media/2004/Tim/tt011404-04.gif” />
src=”https://tradingmarkets.com/media/2004/Tim/tt011404-05.gif” />
^Next^
Semis has a rough time as
stocks like O2 Micro
(
OIIM |
Quote |
Chart |
News |
PowerRating)
were hit hard and new breakout attempts from names like Ultratech
(
UTEK |
Quote |
Chart |
News |
PowerRating) were unable to succeed.
src=”https://tradingmarkets.com/media/2004/Tim/tt011404-06.gif” />
Chinese Internets are coming
back to life, with the recovery of such names as CHINA
(
CHINA |
Quote |
Chart |
News |
PowerRating) and Tuesday’s breakout of Sina
(
SINA |
Quote |
Chart |
News |
PowerRating). This may be a group worth watching, as long as the market stays
healthy.
src=”https://tradingmarkets.com/media/2004/Tim/tt011404-07.gif” />
The major averages did have
one day of selling, but overall they still remain very healthy. We still have
numerous growth stocks holding above areas of support as well as a strengthening
economy. After the recent rally, it may be a good time to let current holdings
prove themselves and search for more potential setups.
Until Thursday,
Tim Truebenbach
timt@tradingmarkets.com