NASDAQ leads, NYSE and S&P500 Indexes Lag Behind
Posted on April 24, 2008
Filed Under Market Speculator |
A positive day all around for those who are long stocks. Bears were unable to push stocks lower for a third consecutive day. Instead the NASDAQ rallied hard on higher volume, a positive sign. An even better sign was that volume nudged slightly higher than its 50dma. It is certainly and indicator that institutional buying may be in the works. With that said, the NASDAQ Volume 50dma is on the downslope interpreting that its largely institutional buying is premature. However, it is a start, the only way to begin anything is at the start. Again, in order for me to be ultra-bullish I need to see volume pick up more than just at its 50dma. I need to see the elephants in the room and you can not miss those!
Some nice growth stories are setting up: PWRD, GU, VISN, VIT, RBCN, and MBRK are all setting up with bases. Even GFA is beginning to show some excellent price and volume action. Its important that these stocks form consolidation patterns that are sound. Then we we await for the breakout to confirm our thoughts. Growth stocks, quality growth stocks will be the ones that will move the fastest when the market is in rally mode!
IBD has done studies on every confirmed market rally since early 1900s. Leading stocks can breakout 13 weeks after the initial follow-through day. There is still plenty of time for these stocks to setup and breakout. The key here is to be patient and let the market confirm your opinion.
Looking for those elephants!
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