R & R
This was a
rest-and-relaxation day for many issues.
You could see that in the averages,
but it was more evident beneath the surface.
Looking at the Naz, the
accumulation-distribution score is running 6-1 over the past three weeks.
The January Effect — the tendency for
smaller issues to outperform — has lived up to its name this year.
So despite the tawdry action of senior
stocks, many of which have printed two lower lows over the past six weeks, the
R2K has set a higher low, in the process bettering the general market over this
period.
The semis did pull back, but on about
a third less activity, and on a tightening of range in many cases. Good.
Even so, a few leading semis, like
Dupont Photomasks
(
DPMI |
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(
PLAB |
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the market’s limpness.
Ditto for Microsemi
(
MSCC |
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Among the names, Cabot
(
CCMP |
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broke out of its five-month cup on big volume, briefly holding above the line
before tiptoeing down under.
PeopleSoft
(
PSFT |
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slower trade following Thursday’s breakout…given the loose fit of its
nine-week base as well as its swift climb up the right side, this was normal, to
be expected.
Another Thursday breakout, Americredit
(
ACF |
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A number of issues stood a breath away
from their base tops.
For example, BJs Wholesale
(
BJS |
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moved up on very thick turnover as it readies a breakout attempt.
As well, Eclipsys
(
ECLP |
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inch away from breakout of its sloppy pattern.
Ditto for Synopsys
(
SNPS |
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base.
Further, Merrill
(
MER |
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bullishly on dim trade, its range tightening.
This was a week in which the
over-the-counter market could do no wrong.
Volume was there, and more than one
institution blew dust off the old leadership (read: this space’s beloved
glamours).
This, while yields on tens backed up
33 bps over the past four sessions.