The market has finally broken to the upside of its recent range and should track higher. I can go through a list of stocks that I have spoken about in Stock Watch over the last couple of months such as MFG, RMD, WOW, VOC, ICQ, TLS, BHP, WES, FLT, JBH. Some have already run hard, others are just starting to turn around and therefore can still be bought down here.
With the recent breakout in the market, those that have not moved much yet should now start to make some serious headway. When I look at the chart of the ASX200, you will notice that it has been forming a rectangle. By breaking out of that now, we should expect to see it move higher in a range about equal to that of the rectangle. That takes us up to about 5700. So unless the market collapses in the next few days and deems this breakout to be a "false" breakout, then investors should consider ensuring that they are invested in order to participate in the next phase of the rally.
