Wednesday, November 03, 2004

Election is over and...

The election is over and it looks like the market is trending higher. I'd really like to see the naz clear above its high at the end of June around 2,050 before the Fed started raising interest rates. This would confirm the trend of higher highs and higher lows which is vital if you plan to hold any stocks and make money. My decision to sit tight caused me to miss TZOO's latest run into new high ground, but there is always another train leaving the station so I'm not worried about missing it. Sitting still for a couple of weeks has been a great excercise in discipline and not over-trading for me. I am encouraged by AIRT, TZOO, GOOG (GOOG cleared $200 intra-day today!) and the many other stocks showing strong performances lately even though I have not made any money from them. This tells me that the environment for stocks is getting better.

I'm long only TASR right now but I've got my eye on a few tech stocks that I expect to do well if the market is going to trend higher. AMXC has consolidated nicely and looks like it is going to get a boost from running into its 50-day moving average soon. Also NVDA and AMD could be good core long positions in the near future if the market is strong, based on their current technicals. NVDA is taking back market share from ATI with its 6800 line of graphics cards. My friends and I all have AMD processors and NVDA 6800 cards to run the newest computer games.

A stock that might make a good flip in the near future is IPIX, which has been consolidating with a low RSI line for months. MACE has been popping up like crazy, which is sort of a heads up to keep my eye on the defense sector. The Bush victory only bodes well for these stocks.

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