Posted on September 12, 2008 - by andrew

Market Recap - September 11th, 2008

The markets scored large gains on slightly higher volume:

• NYSE: +1.1%
• S&P 500: +.6%
• Dow: +.3%
• Nasdaq: +.9%

Here’s a summary of the day’s action:

• Dow’s rally attempt is still alive (Day 4). Watch for a confirmation day (+2% gain in heavier volume)
• Several low-ranked IBD Industry groups performed well. Investors Business Daily recommends only buying growth stocks in the top-50 groups. Be patient and build your watch lists from groups that have the highest rank possible.

Conclusion: If you’ve been diligent and picking the best stocks for your watch list, you should see a few of them approaching buy points. Here are two stocks I have my eye on right now:

• United Therapeutics (UTHR) is about -4% below a $117.92 buy point in a cup base.
• Concur Technologies (CNQR) is about -8% below a $49.09 buy point from a recent trip to its 50 day moving average.

Wait for the confirmation day to happen on the Dow. After that happens, buy slowly! I’m not a big fan of using the Dow as a gauge of the overall markets. So I personally would be skeptical of the rally until:

1. the S&P 500 or the Nasdaq start showing strength
2. leading stocks start breaking out on heavy volume

If you do decide to buy, as always, make sure your stocks are passing their buy points on strong volume (+50% above average).