While The Market Consolidates, Follow Breakouts Like These
The
market showed more weakness today.Â
The Nasdaq finished the day with its first distribution day since March
19 as volume came in heavier than yesterday.
Â
If you are choosing to invest
in stocks, I think it is important to keep tight stops in place.
It is also probably a good idea to take some profits when they are
there.
Stocks like J2
Global
(
JCOM |
Quote |
Chart |
News |
PowerRating) and Vital Images
(
VTAL |
Quote |
Chart |
News |
PowerRating) broke out and failed, before pushing higher.Â
Investors who choose to buy and hold right now may be adding extra
risk. It never hurts to ring the
register a little bit while keeping a partial position, in case the position
runs up.
University
of
Phoenix
(
UOPX |
Quote |
Chart |
News |
PowerRating) has been a steady performer that wouldn’t have
shaken someone out of it who bought it properly off its base.
The stock has gone on to gain 11% in about a week.
Hi-tech
Pharmacal
(
HITK |
Quote |
Chart |
News |
PowerRating) has had an impressive move over the past few
days. It could continue higher, but
volume declining day over day would give way to caution or taking partial
profits.
As the market consolidates
recent gains, more stocks set up in bases. Shuffle
Master
(
SHFL |
Quote |
Chart |
News |
PowerRating) works through what appears to be an ascending
base right now.
Central
European Dist.
(
CEDC |
Quote |
Chart |
News |
PowerRating) also continues through a base.
The stock had a strong prior uptrend in the fourth quarter of 2002 and
may be ready to make another move if the market hangs in there.
 
Â
After a week and a half full
of breakouts in the growth arena, it is now time to observe them to see how
they fare while the market consolidates. Keep
an eye on names like Hi-tech Pharmacal
(
HITK |
Quote |
Chart |
News |
PowerRating),
J2 Global
(
JCOM |
Quote |
Chart |
News |
PowerRating), United
Online
(
UNTD |
Quote |
Chart |
News |
PowerRating), University of Phoenix
(
UOPX |
Quote |
Chart |
News |
PowerRating), Group 1 Software
(
GSOF |
Quote |
Chart |
News |
PowerRating),
Vital Images
(
VAR |
Quote |
Chart |
News |
PowerRating), etc., to see how
they act intraday.Â
Have a great weekend,