Where Billions Of Dollars Are Coming From…
I CAN’T BELIEVE THIS MARKET!
But beliefs lead to opinions which lead to bad choices in the stock market and
are the main reason why I am so adamant that we always follow price and volume
and leave everything else out of it. The major averages have faced a little
distribution, or selling on heavier volume than the previous day, but nothing
to be concerned about.
More importantly, we continue
to see large chunks of money pouring into the market. I’m not talking about
the millionaire next door, but the large mutual fund, hedge fund or pension
fund literally moving in billions of dollars. How do we know this? Anytime a
major average rises and volume comes in heavier than the day before and
above-average, it is a solid indication that big money is buying.
Leadership continues to come from the Internet, medical and homebuilding
stocks. Notice how the market was negative most of the day on Thursday; yet we
saw Ryland
(
RYL |
Quote |
Chart |
News |
PowerRating) and
Hovnanian
(
HOV |
Quote |
Chart |
News |
PowerRating) pushing higher throughout
the session and eventually the market turned? That is what leadership can do
vs. what we have seen over the past three years.
AdvancePCS
(
ADVP |
Quote |
Chart |
News |
PowerRating) showed
us that breakouts are working well. The stock blasted through 34.46 on heavy
volume and closed about 3% higher. The company has quite a few solid traits,
but its sales growth and group strength leave a little to be desired.
Another name that gives the
group better credibility is setting up and may offer an entry point in the
near future. American
Healthways
(
AMHC |
Quote |
Chart |
News |
PowerRating) found support at
its 50-day moving average and may try and push through 26.85. Unfortunately,
the stock’s relative strength against the S&P 500 has been declining recently.
One of the cheaper, early
leaders from mid-March formed a new base and pushed higher today. I am
referring to Findwhat.com
(
FWHT |
Quote |
Chart |
News |
PowerRating).
We will continue to scout out
early leaders in this new Bull Market in the days and weeks ahead.
Enjoy the weekend,