June 4th, 2008

Just by a Hair

The S&P 500 Index just about touched the 60-day moving average; it didn’t cross it. Had it crossed that and the 90-day average, then I would be extremely concerned. Now, as I said yesterday, I’m alarmed and cautious. Here’s another view of the Index:

Tomorrow will be excruciatingly exciting and suspenseful. There continues to be less and less room for this stretched out, richoceting action to play itself out … turning up and and across the 180-day and 300-day or down through the two slower moving averages.

As the market sorts itself out, we see the leaders broadening out from the energy (without taking anything away from these high-fliers) into many new names. I run a number of scans with many new names; these scans included:

  • New highs, 12-month and 4-year
  • Momentum
  • Stocks on the Move (based on IBD’s criteria)
  • Big Price Moves
  • Relative Strength

And here are some of the new names to have filtered out that you might want to research on your own. Go to many blogs and you’ll see these names over and over:

  • TTMI
  • DTSI
  • XIDE
  • SNX
  • BJ
  • MON
  • NVEC
  • UHS
  • ARLP
  • VVUS
  • NTI
  • CRL
  • GMXR

My apologies to you for not including the charts but I’ve got one eye on the Clinton and Obama speeches; I’m going to try to follow-up tomorrow. But for right now, take a look at these stocks and see if you can see the same trendlines and breakouts.

I’m essentially a momentum player. I like to run with the herd, to have a strong tailwind behind me. Most of the stocks I’ve listed in previous postings are momentum stocks; the stocks above, I believe, fall into that category.

Great stocks are critical but a strong market is a prerequisite. And if this market doesn’t resolve itself by moving above the 180- and 300-day lines, no matter how good the stocks are will become irrelevant.

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