A Solid Naz
A good
performance Monday in light of the Naz’s gargantuan 17% blast
intraday from Wednesday’s low.
Of note were the bios, without
question the best-acting growth segment, and for the most part much farther
along in their base-building process than their counterparts.
As I have mentioned previously, you
will often see the growth money flow into healthcare groups such as the bios
when tech has a periodic correction.
And since there are only so many
growth sectors in the market (tech, healthcare, and pockets of retail), this
explains why various medical groups are lodged at the top of the performance
standings.
Breakouts continue to fail.
For example, Astropower
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which a week ago broke out of a multimonth base in very clean fashion, was
forced back below the lip on heavy trade Monday, emerging just a point or so
above the pivot.
A number of growth issues such as
Aviron
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follow through from abbreviated three- to four-week ranges.
Nearly all are having a hard time with
the follow-through, a big reason why it makes sense for the medium-term
specialist to watch and wait.
As well, Network Appliance
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cleared a four-week range on sub-par volume Friday, only to be shoved back below
the line Monday on high turnover.
Key vogue name Brocade
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hurdled a four-week range on okay volume, closing well.
On this score, Micromuse
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which Monday vaulted a three-week zone to a new high on bustling turnover, will
be interesting to watch for follow-through.
Recent new issues, an excellent
barometer of the speculative sentiment, haven’t really begun to move yet off
their recent bottoms.
It’s always a good idea to keep an eye
on these, since a new bull market will always feature a number of new names
fighting it out for leadership.
I learned this in ’90 when I ignored
Cisco’s
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For example, the Class of ’99 included
Aether
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PowerRating), Brocade
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PowerRating), Commerce One
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Juniper
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PowerRating).
These stocks were all leaders in the
’99 rally.
Of course, buying names that are
unfamiliar can be daunting.
However, if the growth characteristics
are there and the tape says “buy me,” you have two compelling reasons
to enter.
When a new issue doubles in a bear
market, you’re being given valuable information.
Oplink
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optic components, is one such example.
Fuelcell
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on Friday’s completion of one of this cycle’s most picturesque
head-and-shoulders tops.
Elsewhere among the names, Myriad
Genetics
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through cautiously Monday.
Power One
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the past three weeks, hovered just beneath its old best.