Of Bucks And Bells
The buck had to stop somewhere.
And, for a day, it stopped at the
heavy a.m. liquidation in three sacred cows (see below).
Otherwise, both volume and the
intraday range of the Naz are increasing, which is one small thing for which
bulls can be thankful.
Talk about wash-and-rinse action.
Some of what was seen in the bells
rivaled what I see in my Kenmore on laundry day.
Oracle
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earnings concerns, washed out more than one institution with its a.m. bungee
jump.
The bigger news, from my standpoint,
was the downdraft in EMC
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triple average.
This was the sole bell whose ringer
hadn’t been sent to the cleaners.
That is up until Wednesday.
Not to be left out was Sun, showing
the exact same behavior as Oracle and EMC on volume over double usual.
Among the names, dozens bounced off
their 50-day lines.
Included here were Micromuse
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and Interwoven
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Holdouts: Electronic products maker
Aeroflex
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current markdowns.
Veritas
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held up fairly well.
Verisign
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50- and 200-day lines, closing well on elevated volume as it sets up for a
Connors/Cooper 1-2-3-4.
Another 1-2-3-4 candidate is i2
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closing well on heavy trade.
Ditto for Siebel
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ricocheted off its 50.
As I’ve said before, watching how a
stock reacts to its 50-day tells you something about sentiment toward that
stock.
For example, Redback
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right through its 50, closing poorly and on higher turnover.
Network Appliance
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through its prior pivot in the a.m. before recovering somewhat, yet remained
below the mark for the first time since its breakout 16 trading days ago.
In the bios, Myriad Genetics
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PowerRating)
hung tough.
In all, a good session if you were a
daytrader.
But just another day in The Correction
for intermediate-termers..