Published March 30, 2012
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!