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 has increased its strength each
step of the way since this rally followed-through on August 15th, 2006.
Big caps, medium caps and small cap stocks are all finding strength. We have a
very broad rally. I have not seen this since 2003, and this rally seems to have
even more to it. Finance related companies such as Franklin Resources (BEN | news | PowerRating | PR Charts )
and Schwab (SCHW | news | PowerRating | PR Charts ) are large-cap examples.
If you need more bang for your buck, then Rogers Corp (ROG | news | PowerRating | PR Charts ) may be
something you are more interested in. The stock sports the required earnings
growth I look for: >25% from the previous quarter among other strong
fundamentals.
Many other names have either broken out or are still setting up as well.
Digital River (DRIV | news | PowerRating | PR Charts ), Hittite (HITT | news | PowerRating | PR Charts ), International
Securities Exchange (ISE | news | PowerRating | PR Charts ) and Motorola (MOT | news | PowerRating | PR Charts ) are just a tiny
sampling of what is really going on in this market.
There is no doubt that the current market is in an uptrend. Buying or already
owning stocks during this time is crucial to investment success (unless you are
not an aggressive or equity investor.) How long this rally will last is anyone’s
guess. Earnings are flowing in and that will tell us something about corporate
America’s strength. This information coupled with upcoming Fed actions and
comments will most likely dictate the current rally. It is bullish to see names
like Google (GOOG | news | PowerRating | PR Charts ) pushing higher into earnings releases. I mention
this because it will come after Yahoo! (YHOO | news | PowerRating | PR Charts ) has already
disappointed investors and quite obviously shows a much different story than the
current market tells.
Enjoy this time and forget that October has handed investors a debacle or two in
the past. Do remember that some fantastic rallies were also started in October;
such as the rally in 1998 when stocks like AOL saw massive moves higher for
shareholders like you and I.
