Why I Wait For The Overall Market
The overall market has been
acting well from a technical standpoint.
We have continuously seen rallies on heavier volume and declines on
lighter trade. The only problem lies in
the fact that we have not seen institutions give us our follow-through day, or
at least a 2% move on heavier volume than the previous trading day.
 
 
Able Labs
(
ABRX |
Quote |
Chart |
News |
PowerRating)
was the most recent name to suffer from the lack of consistent institutional
support. The company has
triple-digit earnings and sales growth over the past four quarters.
It broke out of a short consolidation on 2/18, but showed that it is
best to wait for the overall market.
 
Although Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating)
is well off all-time highs, it has been one of the few stocks able to push
higher. The move has been very slow and
choppy and hardly worth the risk, but it still seems to be hanging in there.
Â
Dick’s Sporting Goods
(
DKS |
Quote |
Chart |
News |
PowerRating) completed its failed breakout today as it approaches its 50-day
moving average.Â
 
I have said time and time again that it pays to follow a
proven set of rules. Ignoring the
overall market’s lack of conviction and buying breakouts over the past few
weeks has spelled pain. (For more on this subject check out a humorous take by
Terry Tate https://terrytate.reebok.com/index.asp.)Â
Eventually, the market will confirm a new rally and we will want all of
our capital available to take advantage of new breakouts at that point.
For now, keep tabs on anything showing strength, because
it may be a good stock when the next rally appears.
Have a great weekend,