Play with Leaders

21/03/2011 03:45

Traders should not rush to call a top on every distribution day. Tops take time to form and the market leaders will likely provide vigilant traders with advance notice. Traders should monitor the action in these stocks to see if market participants still have an appetite for buying the dip.  If a stock can hold near all-time highs during market weakness, it stands to benefit from a strong market as well. The general markets still have some work ahead of them if they are to end the recent pullback. If they can stabilize and move higher from their current levels, the stocks above stand to be major beneficiaries.