Looking for Good Entry Points

 | Oct 14, 2011 | 2:28 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:














Trading is extremely slow but the market continues to hold up well, with breadth running 3,760 to 1,600. Google (GOOG) is off its highs but the bears seem unable to get anything going intraday. High-beta, big-caps names such as Apple (AAPL), Amazon (AMZN), GOOG, IBM (IBM) and Baidu (BIDU) are leading.

I'm optimistic about further upside but the big challenge is finding good entriy points as we are seeing a low-volume, straight-up move with no consolidation.

Take a look at SPDR S&P 500 (SPY) for example. The late, intraday reversal on Oct. 4 had a good surge but the market has been running up on mediocre volume since then. It is now sitting right under the highs it hit in August and September, but there isn't a good foundation.

A couple days of flattish action would fix that, but the tendency of this market is to move sooner than you might think. In view of how often we have seen these V-shaped moves it isn't too surprising that buyers jump in quickly and never really allow the technical patterns to more fully form.

I'm adding to a position in Pharmacyclics (PCYC), which is close to breaking through the $13 level, but I'm watching closely and biding my time on most of the names on my watch list.

Columnist Conversations

My sense is that if yesterday's upmove was not the start of a vertical upside blow-off that is heading directl...
Oracle is today's top gainer in the S&P 500 following last night's Q2 earnings report. The stock op...
If AAPL is going to continue to rally....this cluster zone and prior swing high need to be cleared! This is t...
Yesterday and today was the classic case of watching realized vol. in the SPX and other indexes jump. The mark...



Columnist Tweets


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.