The major indices were only up
slightly in Tuesday’s trading, but price and volume shows a much more
bullish story.
What price and volume show that the mild price gains do not is
that all of the indices closed in the upper half of the day’s trading range on
heavier volume. In the above charts, this is an example of institutional
accumulation. The NASDAQ also showed strong support by bouncing off its 200-day
moving average.
Individual stocks seem to favor large-cap growth right now. Names like Morgan
Stanley (MS | news | PowerRating | PR Charts ), Motorola (MOT | news | PowerRating | PR Charts ) and Franklin Templeton (BEN | news | PowerRating | PR Charts ) continue to
reach new highs.
Small- and mid-cap names are displaying a lot of slow,
back-and-forth action with uncertainty appearing behind each day. Hittite
Microwave (HITT | news | PowerRating | PR Charts ) was unable to hold a consolidation as it declined on
average volume.
U.S.Global Investors (GROW | news | PowerRating | PR Charts ) has had quite an exciting month, even though it
has resulted in a loss! This is just an example of the uncertain environment
surrounding small and mid-cap stocks as you can clearly see a 40% gain through a
pivot point of $25 turn into a loss very quickly.
Other notable stocks include, Digital River (DRIV | news | PowerRating | PR Charts ),
International Securities (ISE | news | PowerRating | PR Charts ) and Rogers (ROG | news | PowerRating | PR Charts ).
The market remains in a clear uptrend with large-cap names
being the clear favorites among the capitalizations.
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.
