On days as weak as today, it is especially important to look for stocks which showed relative strength and performed well. Now, I am not recommending to go ahead and buy these stocks tomorrow. Anything but. But it is important to keep an eye on these stocks as when the market turns, these stocks very well might become the new market leaders. All three of these stocks shown below made 52 week highs today, and that is no small achievement on an almost 300 point down day.
ACG - A thing of beauty, ain't it? A bounce off MA(20) would make for a pretty nice entry point.
FDO - Hanging in nicely in there. Needs a period of consolidation to give MA(20) a chance to catch up. 42 is the support level.
TTM - Gapped up above the previous 52 week highs today on very impressive volume. Would love to see a low volume pullback or period of consolidation on this one.
For my take on the markets today and the strategy for tomorrow, see here.
Take care and good luck!
2 comments:
Hello,
is your primary strategy the breakout/pullback strategy?
Nevar
Hi Nevar,
The fundamental strategy is to go with what the market gives you. In these markets, I would wait for a low volume pullback or a period of consolidation rather than chasing breakouts.
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