By: Scott Redler
When your looking for clues as to the strength of a bounce you look at leaders. The financials bounced yesterday, but they have been duds ever since the Goldman fraud allegations. The leaders right now are cream of the big tech crop. SNDK is the first one on that list to make new move highs. This is important to note, and we will see if it can get a daily close above the 45-45.20 area. Althought it is hard to buy stocks in this area after a steep bounce, stocks do not typically make new move highs during bear market cycles. This could be a sign that a short term bottom is in and we may be able to hold a little bit longer than initially thought.
The candidates for similar moves during this bounce:
VMW
AAPL
NFLX
You can make money long at the right time during any correction, just limit yourself to the strongest stocks and be very patient. Wait for the opportunities that scream at you and are too good to pass up.
