Successful Retest - EPAY CNK DDIC MNRO

This week was packed with news as we had to consider budget deficit commission, fed speak on QE2 and the latest unemployment numbers that came out today as well as the ongoing problems in Europe. We could spend a few paragraphs talking about each of these and quite frankly it doesn’t help the investor since it is all just noise which can sway you either way regarding your stock holdings. As always let’s forget the noise and look at price and volume of the stock market which is all that matters.

Note the graph of Dow Jones Industrial as shown above courtesy of www.bigcharts.com indicating price, volume and the 50 day moving average over 6 months. As so often happens we have successfully retested the moving average by bouncing up off it. This is of course very good news for the bulls although it would have been more convincing to see volume increase on the rebound.

After recent hesitation in buying it would be acceptable to be on the look out for more investments. Hopefully over recent weeks during this small correction you have been carefully monitoring the stocks you own and maybe tightening up a little on the sell stops. I have found that most of my leaders have so far held up and are starting to move up again as I resume the buying. During any minor correction it is very healthy for the stocks you own to move in a sideways action for a few weeks consolidating recent gains. If and when the stock market resumes its climb these stocks will hopefully be first to move since they did not fall by much in the correction.

Here are a few more stocks performing well and looking ready to move higher if the stock market holds up. Make sure as always that earnings are not imminent for any new purchases. Remember this blog site is not a newsletter that promotes stock tips or penny stocks. Rather the idea is to teach stock selection with low risk advice.



EPAY - $19.45

CNK - $18.60

DDIC - $10.98

MNRO - $51.42