Sunday, July 29, 2012

New Rally Or Another Speed Bump Peak





It was so nice to see the DJIA close above 13,000 again, but does it have staying power?

From the chart above it can be seen that from the recent low in June we are now at the top of the peak of the fourth speed bump. It can be viewed as a rough road to travel, but upwards nonetheless.

Where does it go from here? Is this truly just the top of a speed bump or the start of a new rally? I’m not sure, but I will be looking at some buys.

So what did I see in my weekend review?

The 10-yr Treasury yield is up this week to 1.55…not a good sign, but too soon to be meaningful. 

IBD (Investor Business Daily) as expected after the recent upturn is now:  Confirmed Up Trend 

Copernicus Systems: Is still long, but still mixed.

Moneys Flows are now up in all 3/3 portfolios and now no divergences in prices. Those that read this blog closely may remember that last week it was noted:  “Moneys Flows are now down in 3/3 portfolios, but a divergence in price is now seen; this is usually worth attention.” ….so it was worth attention

IBD 50 Top Five:
ALXN, SWI, MLNX, CRUS, HMSY, quite a bit of juggling

Last Week:
MLNX, AAPL, ALXN, GNC, CRUS 

Copernicus Top Stocks are:
AMBN, WMT, ARBA, MRK, EBAY, and more juggling here as well.

Last Week: 
ARBA, WMT, AAPL, BIIB, DIS  

Currently my "Stocks for a Trade" now consists of:
(All gains or losses shown are the total since purchase)
BIIB 2.06 % and now profitable

IBD 50 Basket Holdings Are:
None at this time

ETF’s for a trade are:
GLD (3) buys for -4.41%, up a tad

What will I do?
It was good to see DOV, one of the dividend payers make a 4% gain on Friday. This one has been asleep for some time.This was a good reinforcment of needing to strengthen positions in these good solid companies.

I will be looking further at taking positions in MLNX, CRUS, AMGN and even WMT. These are all selected from the two groups of 5 above.

I am also intrigued with RGR which has not returned to IBD top 5 but it has been on a nice trend.

I hope you have a great week.


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