Why This Could Be The Start Of Something
This
market has shown too much evidence to ignore the possible strength.Â
The last few days have produced positive action as we have seen
declines coming on lighter volume. Until
we see distribution, I would suggest following what the market has already
said.
Individual stocks have not
gone on to make much headway, but they have offered some small profits here
and there. Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating) is one such example. It
has held above its pivot of 70.95 for the past week.
Symantec
(
SYMC |
Quote |
Chart |
News |
PowerRating) has had a choppy breakout through 46.29, but closed well today as
it approaches its earnings release.
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Stocks like Digital
River
(
DRIV |
Quote |
Chart |
News |
PowerRating) and Columbia Sportswear
(
COLM |
Quote |
Chart |
News |
PowerRating) continue to set up in solid bases.Â
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If this is a new Bull Market,
things may just be getting started. There
is obviously a lot of hesitation out there, as breakdowns have been much more
rampant than stocks breaking out. People
realize they have to be careful since each day seems to have a “story
stock” that is down big. It is
much more difficult to find stocks making big moves higher.Â
For example, today’s name was Photon
Dynamics
(
PHTN |
Quote |
Chart |
News |
PowerRating).
Admittedly, this isn’t a name I would have suggested stalking, but it
did take a 23% hit on a delayed earnings release.
 
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This market has shown that
isn’t the time to go after stocks setting up without the proper
fundamentals. Abercrombie
and Fitch
(
ANF |
Quote |
Chart |
News |
PowerRating) is one such name that is establishing a
double-bottom base with a pivot of 33.95.Â
The problem lies in the stock’s EPS and sales growth.
Neither one has shown explosive results and is an example of what I
would probably avoid.
 
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This market may be able to
yield solid profits, but it will take sound discipline and patience to reap
the rewards.
Until Thursday,
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