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Growth Stocks take it up a notch but still need to prove themselves.
Twenty-three new highs from stocks meeting our top fundamental requirements is more than we’ve seen in a long time.
We’ll maintain our cautious Yellow Flag bias, but are ready to shift to a stronger Bullish or Bearish stance when more evidence weighs in.
As earnings season picks up it is still unclear what trend will take shape.
The market, so far, is reacting well to further carnage in financial stocks like Citibank (C), Washington Mutual (WM), Wachovia (WB) and Merrill Lynch (MER).
Good earnings from top tech names like Intel (INTC) and Google (GOOG) is refreshing.
So is action from our recent buys in MasterCard (MA) and Rio Tinto (RIO) are holding up nicely.
We’ve added three stocks to our Buy Radar: (for paid subsribers)
Both meet our strict criteria.
But we are still cautious about rushing into the market.
Traders with higher risk tolerance and flexibility should consider the new buys. Those looking to build slowly should wait for further action to play out on what they already own.