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The Chartman

Wall Street May be Poised to Push Higher

I’d have to say this past week was pretty interesting. Kind of gloomy and then – wham! – a big comeback day on Friday.

In fact, overall, I’d still say the situation is positive. Usually when resistance is knocked on three times, the last time “holds” and a breakthrough is imminent. Therefore, we’ll see if Friday’s action can continue and the Dow can make new highs in the next week or so.

On a different note, I thought I’d look at one of my personal stinkers. People who write about stocks often come across as all-knowing, but as a trader, I make my share of mistakes.  

One that’s really testing my patience is Rite-Aid (RAD). We have a Rite-Aid a few miles from us, and I use it for everything from prescriptions to buying milk. There’s always traffic in there.

So, I started buying the stock at the first area of support -- and got creamed. But, I believe in it and recently bought more. It’s making a comeback, but I’m still in the red. We’ll see if my patience can hold out!

Finally, I’ve been reading that housing is making a comeback. You wouldn’t know it from our personal efforts to sell our house, but I looked at the chart of Pulte (PHM) and sure enough it’s been moving.

I still like the stock, but if you own it, make sure you have a stop under the trendline.

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."