Watching For Positives
This has been a crazy market with unpredictable
tendencies. The only thing to say
about this is: If we can’t see a trend emerging through institutional buying
and selling, then there must be a lot of indecision happening on the part of
the big money that moves the market.
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Corinthian Colleges
(
COCO |
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PowerRating) paints this picture the best, as it whipsaws back and forth and is creating a wide and loose pattern in an
attempt to move higher.
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Movie Gallery
(
MOVI |
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PowerRating) is another stock that shows us
volatile action. It attempted a breakout yesterday, through Buy Point of
19.42, but reversed intraday to close lower on huge trade.Â
It is attempting to regain some ground today.
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Forest Labs
(
FRX |
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PowerRating) is about the only stock that I see
acting well. The company sports
stellar fundamentals and broke out of its base in early October. Since a brief move higher, it is now consolidating well above its
50-day moving average on lighter trade. I
believe this is the only leader I have seen emerge from this rally.
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I may be wrong on this, but I’d expect some solid
action from the Fed meeting this morning as well as from the nationwide
election results. This will give
us a better opportunity to gauge the market’s strength or weakness. Keep an eye out for such positives in the major indices such as heavy
volume on rallies or low-volume pullbacks. If we see above-average trade during market declines, then look out!
At this time, we should be mostly relegated to the
sidelines because there haven’t been very many stocks to purchase and even
fewer to hold onto. The Nasdaq
confirmed its latest rally with a 2.6% gain on heavy trade Monday, so we will
look for solid candidates to move into if this rally is able to continue.
If this rally is not for real, then it will be important to preserve
our capital during this uncertain market where lagging groups are doing most
of the bouncing.
Until Thursday,