Potential Follow-Through Day

 

The question on everyone’s mind deserves an early response from your MarketSmith team:

 

With today’s action in the market, we are on track to get a follow-through day.

 

Despite today’s positive action, it is still important to remain cautious, and to not overexpose yourself to unnecessary risks. Not all follow through days work, and with the recent volatility in the market, investors cannot afford to let their guard down.  Also, entry points and keeping a low average cost on positions is paramount.

 

The market following through is half the battle, leading stocks must also cooperate. Growth investors really want to gauge the health of the market by seeing leading stocks breaking out from their price consolidations. This is where your Growth 250 report becomes a strong resource for gauging market condition.

 

Check your “Breaking out today” list and look for leaders trading through their pivot prices. Also, look for which Industry Groups are leading the way. The market leadership has been narrowing. CMG today and NFLX last week gave us another two examples of why to be careful here.

 

Historically, the fourth quarter is a good time to own stocks.

 

If you have any questions make sure you give us a call at 1(800) 424-9033.

 

Best Returns,

 

The MarketSmith Team

Learn more about starting your free trial at MarketSmith.com