The Rally About Nothing

This rally hasn’t been much fun. Stocks are breaking out, but then going nowhere. It’s good to see a stock break out on nice volume (except for LULU, a discussion for later), meeting all or most of your criteria for buying. What isn’t fun is then seeing that stock go nowhere. It enticed you, showed interest in moving higher, then nothing. It’s kind of like that girl (or guy) who shows interest in you, gives you her (his) number and then doesn’t call back or commit to going out, but doesn’t tell you they aren’t interested.


Often the opposite sex won’t tell you they aren’t interested, leaving you to wriggle, but the stock market, like people, does allow you to move on to greener pastures. Stocks will also tell you if they aren’t interested by dropping below their buy points. This has been rare. It’s also been difficult to just jump into a different stock.

This is why I haven’t put up too many posts lately. Not much to report. Most of my watch stocks are still there. Some continue to work on bases, some bases are melting down, and others have broken out to mostly just sit there after breaking out. Only GMCR from my watch list has really moved higher, but not much (again, I’m not going to talk about LULU for now… it broke out on no volume, only to cruise higher after an earnings beat).

Keep watching, but also keep your stocks on a short leash. The market has flashed a number of sell days in a short period of time.