I just read that the Dow is up for the 6th consecutive month. Wow. And honestly, the move has surprised a lot of skeptics -- me included!
But, while there’s no sense fighting the strength, it’s always prudent to be cautious. To that end, take a look at the chart below. While last Friday’s bounce was indeed bullish, I think the next buy signal will be if you see a close above resistance. Until then, the market is just consolidating.
Speaking about consolidating, one stock that had been doing that – on the downside! – had been Research in Motion (RIMM). I’m going to talk about it on Saturday’s Bulls & Bears, but here’s a sneak preview: I like it as a takeover play!
Finally, with all the talk about ever-higher gas prices, is ExxonMobil (XOM) a good buy right now? Almost, although I think you need to wait until it can breach resistance. That will be a signal the congestion is over and the uptrend has resumed.
Okay, next week is Good Friday and the markets are closed. See you on April 13th!
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."