Timothy J. Truebenbach is the
President of True Capital Management and general partner of True Capital
Partners LP, a hedge fund. He uses a disciplined model that trades on the
intermediate-term time frame. For a free trial to Tim's Nightly Stock Analysis
Report click here or call 888-484-8220 ext. 1.
The market remains in a confirmed uptrend, but we have been seeing a slight
pause in the action.
The indices have not pulled back much at all since the strong advance they have
seen since mid-August. For this reason, many leading growth names have continued
higher and higher without many pullbacks or offering new buying opportunities.
Apple (AAPL | news | PowerRating | PR Charts ) was an exception, originally breaking out on 9/5 and pulling
back to its 50-day moving average from 9/27 to 10/18. This is a good example of
a place to add shares to a portfolio.
This rally has exhibited fantastic breadth, ranging from small-cap stocks to
large-cap, household names. Exchange-related names such as International
Securities (ISE | news | PowerRating | PR Charts ) or plastic firm Rogers (ROG | news | PowerRating | PR Charts ) have been impressive names
along with the likes of Morgan Stanley (MS | news | PowerRating | PR Charts ) and Franklin Resources (BEN | news | PowerRating | PR Charts ).
We have even seen old leaders such as Cisco (CSCO | news | PowerRating | PR Charts ) push to multi-year
highs.
For the most part, this rally is well in tact and other than a current pause or
a pullback if we are lucky; I would expect higher prices if all things remain
equal. We will constantly look to see if distribution creeps into the indices or
leading stocks start to have trouble holding 50-day moving averages.
