Healthy and Expected
We had suggested that we would see a pullback today, and we got it. We also said it probably wouldn't be much, and it wasn't. There's probably some more selling in store, but I suspect that it won't be as much as the Bears hope.
DOW: Typical healthy consolidation.
S&P500: Similarly the S&P pulled back too. There's some good support below.
NDX: The Nasdaq is looking good here, and is just gathering energy.
QQQ: I'm a buyer of the Q's on more weakness.
HUI: I'm very impressed by the Gold Miners in here. We're probably going to get a pullback soon, but maybe from appreciably higher.
XAU: The XAU supports the above contention.
HMY: I've always liked Harmony, though it's not playing as well as some of the others.
BDH: I'd love to see the Broadband stocks take off. It looks like they are completing an ABC correction.
BKX: The Banks are holding above support.
GSS: Gold Star was up huge today. It's one of our holdings. I'm sure that many of you hold this one at 4.17 and if so, you have to be happy campers. We didn't give an explicit "Buy" (we thought we had a little bit more time), so we will not take it for the track record.
REV: Let's not chase the Revlon.
PFE: Pfizer is on of the better drugs. I'm an owner and a buyer.
VZ: Nuts. Just missed the Verizon.
BMY: I'm also a holder and buyer of BMY for Long-term accounts. I note that this one pays a 4.82% dividend. That beats a money market and a lot of CD's.
JDSU: Let's try to take some of the risk out of the JDSU and buy on a pullback.
MRK: Merk is also one that is in my sights.
NXG: Let's see if we can't get a pullback in Northgate.
RIG: Back to Doug's Transocean Offshore. We've had some fun with this one in the past.
Summary:
We'll probably see some more selling ahead of the weekend, but with expiration, it probably won't amount to much. If it does, I'd say it's a buy.
Stay constructive on the market, but make sure you use stops on the stocks. This isn't a super healthy market, in which everything will go up. If a stock stumbles on earnings, they'll bomb it.
Be Well, and Trade Smarter Than the Average Bear!
Mark, Doug, and Holly
-The ChartSmarts Team
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