A stabilizing market
The market seems to stabilize here. It’s good to see the market build a base between 1050 and 1100(on the S&P) for now. It does not mean that we are going straight up from here. It might need more time to complete this base and break out from this base (above the 1100-1115 level on the S&P).
In the meantime, as we said yesterday, we are looking for value plays. Meaning, stocks with decent fundamentals that are beaten down heavily in the last 2-3 months. This is where we can make more money. For example, we gave TSTC yesterday. This broke above the 50 day around $9.5 and is aleady up 6% today. IGTE and VMW are our standard growth leaders which are not beaten down in the recent past, and are near the 52-week highs and breaking out of decent bases. But, today they are up by only 1%. This clearly shows that in the short term, the value plays are going to lead. Also, the end of the month window dressing might provide some life to the entire market. We are going to provide more value plays as we find them. You can subscribe to our free real time alerts by sending an email to support@breakoutpickr.com
Keep an eye on FUQI. This could break out of it’s 50 day around $8.20 level.