Strong Volume Equals a Strong Foundation
Stocks with good potential to lead during new market uptrends tend to break out of bases -- or consolidation areas -- in heavy volume. Unfortunately, upside breakouts in strong volume have not been a common occurrence lately, due to light volume in the market overall. Also, risk still exists, especially in the current low-volume environment.
While it's true that a new market uptrend was confirmed on Dec. 20, with big percentage gains in higher volume, meaningful base breakouts in heavy volume remain in short supply. This gives me pause, as does the fact that the month of December isn't exactly known for being a launching pad for new market uptrends....500 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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