De Quoi?
There was little positive to say about
this one.
As previously mentioned, once a market
declines by intermediate proportions, i.e. 8%-12%, it is best to see volume
accelerate on the downside, to scare ’em out.
Thus, Friday’s drop on waning turnover
was not the prescribed medicine.
The gaping holes in Nortel
(
NT |
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News |
PowerRating)
(-33%), Glue
(
GLW |
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PowerRating) (-21%), JDSU
(
JDSU |
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News |
PowerRating) (-21%), Sun
(
SUNW |
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PowerRating) (15%)
notwithstanding, Tellabs
(
TLAB |
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News |
PowerRating) was Friday’s technical disappointment
within the bells…the others had been damaged goods for months, however TLAB,
an outperformer for four months, had held up better than any other bell, save
for IBM
(
IBM |
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PowerRating).
The semis, though lower, came off on
dimming trade.
The semi equips gave back less ground
than the producers themselves.
And Intel
(
INTC |
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News |
PowerRating), though off,
outperformed nearly every other producer.
Three pluses de minimus.
This type of back-and-forth action, so
characteristic of a market doing anything it can to form some sort of bottom,
should not be affecting the medium-term trader much.
With a heavy cash position, you should
not be in a full-tilt, take-’em-off-after-puttin’-’em-on mode when the market
pulls back like this.
All it should do is postpone your
eventual participation in the market, not dent your portfolio.
Alliance Fiber Optic
(
AFOP |
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Chart |
News |
PowerRating)
pulled back to its pivot on drying flow.
Calpine
(
CPN |
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Chart |
News |
PowerRating), which acted well
Friday, sets up.
Over in the oil patch, names pulled
back on lighter volume, such as leader Weatherford
(
WFT |
Quote |
Chart |
News |
PowerRating).
Cabot Micro
(
CCMP |
Quote |
Chart |
News |
PowerRating), struggling in
vain to be an it stock in a market devoid of anything close to that paradigm,
narrowly missed putting in its fourth distribution day in the past 10, uncommon for a stock that is
supposed to be the nouvelle leadership.
The real question, is the leadership of
what?
Etcetera: I will be
speaking at the International Online Trading Expo on Tuesday, Feb. 20 from
1:30-3:00 at the New York Marriott Marquis Hotel.