What Happens Now?
The market’s
better action is becoming more and more
evident. Do you know what happens now? Pullback or sideways time! Whenever too
many people get excited, the market tends to stop dead in its tracks. Normal
quiet pullbacks…just what I want to continue to see…and that is what I
suspect is going to happen here. No big deal! The action is still as about as
perfect as you would want to see. Anyone who is bearish right now is not
following the tape.
A few notes:
The New High List is being talked about a lot. Be
careful about that. I went through all 471 new highs this morning. About 75% of
them were stocks that were either under $12 or traded less than 50,000 shares.
Gold was up over $12 today. Duh! My May
9 report alerted you to the breakout in gold stocks. The metal almost always
follows breakouts. Looks like this is an investable move…but I hate gold.
Shorts should
not be avoided. When the market is acting well, it is easiest to isolate
weakness. Take a look at my May
16 report. Except for
(
HWP |
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PowerRating), the other stocks mentioned look mighty
tasty on the downside. Thank you, New York Times, for the bad article on
(
AREM |
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PowerRating).
(
CHKP |
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PowerRating) and
(
CMVT |
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PowerRating) look very suspicious.
(
HWP |
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PowerRating)‘s
volume on earnings tells me to stay away.
Stupid
Plays of the Week
- Alcatel may try to buy
(
LU |
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Chart |
News |
PowerRating).
Reminds me of Portland picking Sam Bowie in the NBA draft and passing on a
guy named Michael Jordan. - Jeff Bezos actually said nothing
about
(
AMZN |
Quote |
Chart |
News |
PowerRating) this week. Rumor has it his nose was growing too long. - Maria Bartiromo. What’s a week
without making fun of her? On Thursday morning, she whipped everyone
watching into a frenzy about
(
CIEN |
Quote |
Chart |
News |
PowerRating). “This stock is going to be on
fire!” It was supposed to open up $4. Not! Opened
up a wee bit and finished down on the day.
Not-So-Stupid
Play of the Week
This goes to CNN. Finally did the right thing. They brought Lou Dobbs back.
Anybody want to understand why I like him so much? First watch the CNBC donut-heads
and then watch Lou. It is all about class and serious talk about the markets.
Predictions of the Weekend (no guarantee)
Congaree is right there at the end in the Preakness.
I like it to win going away.
The Undertaker wins the WWF title from Stone
Cold Steve Austin on Sunday’s Pay Per View.
Â
I will bake this weekend…100 degrees in Florida.
Have a great weekend.