What I Like About Tuesday’s Rally

  • October 7, 2003
  • Tim Truebenbach


The major indices were able to show us that institutional
dollars are still flowing into the
market.
We saw the Nasdaq rally today
and
volume came in higher than yesterday.size=”2″>


image src=”https://tradingmarkets.com/media/2003/Tim/tt100703-01.gif”
width=”382″ height=”324″ />

It is very important to
see
the market rallying on heavier volume, and preferably, above average.style>
In the past few weeks, we have seen low-volume rallies and
high-volume
declines. It is nice to have rallies like today
and last
Friday.

Individual stocks seem to
be
acting much better than a week ago. In
my trading
service,
we had several different recommendations trigger today alone.style> There are also still stocks setting up, which we did not have last
week. One thing I also noticed today was that the
major
indices were mostly hugging the neutral zone before various stocks started
leading the indices higher.


Network Appliance
(
NTAP |
Quote |
Chart |
News |
PowerRating) appears to be under solid
accumulation. The company boasts strong earnings
and sales
growth and pushed through resistance this afternoon.


image src=”https://tradingmarkets.com/media/2003/Tim/tt100703-02.gif”
width=”381″ height=”326″ />

It seems like everyone is
putting 1+1 together and getting “2” on this next one. The
stock market has been good, so discount brokerage business must be picking
up. We are seeing volume and price appreciation come into
Knight Trading
(
NITE |
Quote |
Chart |
News |
PowerRating) and
Ameritrade
(
AMTD |
Quote |
Chart |
News |
PowerRating).


image src=”https://tradingmarkets.com/media/2003/Tim/tt100703-03.gif”
width=”383″ height=”329″ />


image src=”https://tradingmarkets.com/media/2003/Tim/tt100703-04.gif”
width=”382″ height=”327″ />


Select Medical
(
SEM |
Quote |
Chart |
News |
PowerRating)
is
another name that comes from a solid group (Medical.)
The
company was working on a base-on-base formation when it decided to break
out
two days prematurely.


image src=”https://tradingmarkets.com/media/2003/Tim/tt100703-05.gif”
width=”384″ height=”326″ />

One thing we have seen
that
may be able to offer continuing leadership for the market is this:
high-volume, institutional-quality names. I have
already
mentioned NTAP, AMTD and NITE; but additional names such as
Mercury Interactive
(
MERQ |
Quote |
Chart |
News |
PowerRating) continue
to
set up for us.

We’ll see how things play
out
and if strength sticks around.

Until
Thursday,

Tim
Truebenbach

face=”Arial”>timt@tradingmarkets.com