This Market Has More Room to Rally

This market seems to be defying gravity, and I’m as skeptical as the next guy regarding future gains. However, most commentary focuses on either the Dow or S&P making increasing highs. What’s left out of the discussion is that the NYSE has yet to hit old highs. That’s good news if you’re bullish and looking for reasons not to sell.

I think the market goes through cycles where there are a few “it” stocks folks regularly look at.

I’ve been around long enough to remember stocks like Netscape, Dell and AOL (NYSE:AOL). They’re mostly gone, but a few still around are Intel (NASDAQ:INTC) and Microsoft (NASDAQ:MSFT). I haven’t looked at them in a while, but both present interesting charts.

First is INTC. It’s done nothing for months, but may be readying for the next leg up. Wait for it to tip its hand, though, with a close over $35 on high volume.

On the other hand, MSFT has had a good run, but it may be time to take some profits. It’s at the upper end of that trend channel and prime for a pullback. I like it as a buy in the mid-$40s.

Back next week to see if the market votes for more green…or red.