Uncool
At least the bears are
increasing.
That’s about the only positive that
came out of Wednesday.
The glamour complex, chest-deep in red
ink, appeared surreal.
Ciena
(
CIEN |
Quote |
Chart |
News |
PowerRating) off 20%, JDSU
(
JDSU |
Quote |
Chart |
News |
PowerRating)
off 25%, PMC
(
PMCS |
Quote |
Chart |
News |
PowerRating) off 19%, Applied Micro
(
AMCC |
Quote |
Chart |
News |
PowerRating) off 25%, Transwitch
(
TXCC |
Quote |
Chart |
News |
PowerRating) off 29%.
Looking at a screen doesn’t really
give you the proper perspective.
Looking at the charts does.
And it obviously isn’t pretty.
For example, EMC
(
EMC |
Quote |
Chart |
News |
PowerRating) is now
halfway through the right side of its right shoulder…it’s rolled up four
distribution days and no accumulation days in the past seven sessions.
And this is the best looker
among the benchmarks.
Another, Corning
(
GLW |
Quote |
Chart |
News |
PowerRating), is
“done” for the time being.
Among the bells, that leaves just Sun
(
SUNW |
Quote |
Chart |
News |
PowerRating), which had resisted arrest…that is, until Wednesday.
And the head-and-shoulders tops keep
showing up.
Newport
(
NEWP |
Quote |
Chart |
News |
PowerRating) completed one
Wednesday.
Brocade
(
BRCD |
Quote |
Chart |
News |
PowerRating) failed on its
breakout of a four-week range.
Again, the rubber-meets-the-road test
of how a stock behaves after its breakout has revealed nothing new over the past
week.
I.e., the breakouts aren’t following
through.
Other than the obvious distribution
going on in the Nasdaq, this is really all the position player needs to know at
this point.
The net effect of Wednesday: It will
take even more time for tech to mend the technical deterioration than was the
case two short days ago.