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What Are the Leaders Doing?

The market has been resting for a couple of weeks now – and who could blame it?  After a run of more than 7% off the March low, some kind of digestion was in order.

Initially, we just saw indecision as the indexes flip-flopped around key levels (NAZ 2802, S&P 500 1332, DJIA 12400, etc.).  Since then, however, they have weakened a bit.  That isn’t bad, and the pullback could quite easily result in a higher low on the daily charts (vs. the March lows which are well beneath current levels).

While the broad market grapples with where to go next, perhaps a more pressing issue is what are the leading stocks doing? Let’s take a closer look and see how they’ve fared of late, as well as some key levels to keep an eye on in the days ahead.

aapl-04132011

Chart courtesy of TeleChart [1]

lulu-04132011

Chart courtesy of TeleChart [1]

sina-04132011

Chart courtesy of TeleChart [1]

ntes-04132011

Chart courtesy of TeleChart [1]

pcln-04132011

Chart courtesy of TeleChart [1]

ua-04132011

Chart courtesy of TeleChart [1]

open-04132011

Chart courtesy of TeleChart [1]

sohu-04132011

Chart courtesy of TeleChart [1]

meli-04132011

Chart courtesy of TeleChart [1]

The best thing to do right now is allow the market digestion to continue and allow the chart patterns [2] you’re watching to fully mature.  Forcing entries out of boredom [3] isn’t the secret, so maintain your discipline and let the market generate signals before you take action.  If you choose to play at the wrong times [4], it’ll cost you.  Once somebody else starts the move, then you can hop on board for a ride.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast [5]

Are you following me on Twitter [6] yet?