Well, that certainly was a robust week, as right on cue the Dow kept climbing after its breakout last week. Can it rise higher? Most certainly, although I’d start to get cautious again as it comes up against that slight downtrend line.
As for the Nasdaq (I used the QQQ as proxy), I think it’s already AT resistance, so you may see a pause (or pullback!) in the next few days. But, sometimes a pause leads to a future breakout, and if the Nasdaq can close above that resistance, look for a splendid finish to ’11.
But macro stuff aside, what specific stocks to buy? I’ve been skeptical of gold for awhile, but if you’re going to go in that direction, look at Newmont Mining (NEM). It broke to new highs a few weeks ago, then quickly pulled back. It then broke out again today, and I think will climb much higher.
Another stock to look at is one of my favorites: MasterCard (MA). You’ll notice on this 2-day chart, it broke that downtrend line and has firmly re-established its upward momentum.
Gary B. Smith joined FOX News Channel in 1999 and is currently a regular commentator on "Bulls & Bears," including his own segment called, "The Chartman."