Will These Stocks Lead The Market?

It is fascinating to see what
the market will do now versus what similar information would have done to it a
month ago.  The FED met, mentioned that rates may aggressively move higher and
the averages completed yet another day of low volume gains.

 

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We are now 16 days into this
rally and we have yet to see a day of above-average volume.  As prices keep
rising, sellers are getting higher and higher prices into which to unload
their shares without any evident quantity of buyers to absorb them.

We have also failed to see
any material moves out of potential ‘leadership’ growth stocks.  By
significant, I am referring to moves of at least 20%.  eResearch (ERES) was
one of the first names to break out, but has since declined to below its pivot
point of 23.85.

^next^

 

 

Resources Connection (RECN)
was one of the few breakouts to actually occur on very strong volume.  Thus
far, the stock stands about 2% above its breakout point.

 

 

Institutional favorite,
Qualcomm (QCOM) has been creeping higher which includes a breakout through its
double-bottom pivot of 69.10 today.  Unfortunately, volume was anemic in
ending below-average and less than yesterday’s levels.

 

 

Can stocks like these move
higher and lead the market?  Of course, because anything is possible.  Is it
probable?  Most likely not.  At this point in time, there have been small
profits, but the risk trading and holding stocks far exceeds the rewards that
have been produced.  If you are looking to trade, it is best to do it
cautiously and keep any losses very small.

Tim Truebenbach