Market Wrap
Well, the indexes closed higher on the day. The SPX has been up 4 straight sessions, while the Nazz has been up for 5 straight. Impressive. Volume levels ran slightly lower than the previous day, so buyers showed a bit less enthusiasm, but still a nice day.
The SPX is thisclose to taking out its April highs - a bullish sign. So while I think the short-term trend has changed, I don't expect it to come in a straight line. That means I would not chase stocks here. Better to be patient, wait for some weakness, and buy your favorite stocks on pullbacks. If you need to generate some ideas, try the links off to the right.
posted by J. Kahn @ 3:01 PM
2 comments
2 Comments:
I agree - I think a few down days are expected as volume is slowing down and weak hands are likely to take profits. I've been seeing a lot of IBD stocks setting up nicely - several have broken out recently and continued to new highs (BMHC, GOOG). Others have showed strength and then pulled back to find moving average support (BLUD, LB) for potential buying opportunities.
I think what we have seen in the indices is encouraging. Bill O'Neil refers to the pattern as "bear tracks." A few more follow-through days would confirm a market bottom (sound accurate Jordan?).
What do you think of ABRX?
I think that sounds right. If we are in a new uptrend, then we should see more breakouts working, and use pullbacks as buying opps.
I don't follow ABRX, but considering the disaster that hit the stock yesterday, I wouldn't go near it.
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