There Is No Telling How High This Rally Can Go, Things Are Not All That Great
May 15, 2008
While the Dow, S&P, and the Nas all were able to close higher today only the Nas showed any real strength where volume came in above the 50 dma. Despite the weak volume, there are a handful of stocks breaking out of nice bases that look like they are ready for big moves.
A good sign is the number of new highs beat new lows 175 to 95. This is a decisive victory for the bulls and even without the volume coming in we can still ride this trend as long as it lasts. I can’t get fully behind this market with such weak volume but there are some nice charts and as long as they show you should play them. It looks as though semiconductors are seeing some action and there may be some rotation into these stocks shortly.
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