When you’re dealing with the market on a regular basis, the best attitude to take is “cautious.” Of course, this stance looks foolish when the bull roars, and that’s exactly how I feel after a very solid week for the Dow.
Does that change anything for me? No, but in the absence of any significant down days it pays to be positive.
The hot topic in both business and political circles these days is ObamaCare. Drama aside, I find the action of the insurance stocks interesting. As an example, I thought after Obama’s Thursday press conference that the stocks would sink. Instead, they rose. That tells me maybe companies like Wellpoint (WLP) are the place to be.
Quite often when you trade based on the charts, you get an immediate win. Usually, though, patience is required and that’s exactly where I am with eBay (EBAY). I think it goes higher, and there’s still time to join me if you agree.
Back next week to see if the Bulls can maintain focus.
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."