Everywhere strength
Thursday’s strength was ubiquitous. Everything
moved. And everything grooved.
Well, almost everything. The Internet
glamours took the day off, easing slightly…Any pullback in these stocks would
be welcomed, as it would help set the table for more durable advance in the
intermediate term…Watch the volume in your stocks as they begin to
correct…This will aid in determining if the big money is getting out en
masse.
Breadth, at 19-to-12 on the Big Board,
was a plus, though no great shakes given the 1.9% rise in the Dow at 3:00 p.m.
ET…Credit a lot of this to the across-the-board markup in the interest-sensitives.
The benchmark techs continued to
impress, though the pre-holiday turnover was muted.
The hard-charging genomics
stocks kept up their hot pace Thursday…This might be an interesting group to
play once the tech surge cools. Growth mutual funds have to play something when
tech corrects…Throughout the ’90s, you’ve often seen a rotation into
healthcare (the only other broad sector of the market that has bona fide growth
credentials) when tech comes off…Given that genomics is the hottest segment of
biotech, which itself is the hottest group within healthcare, this bears
watching…The media’s fascination with the whole gene-mapping race, however,
might make things too obvious to too many people too quickly…And therein lurks
the hidden danger here…But, as usual, we’ll let the tape decide.
Inside the genomics, Cell Genesys [CEGE>CEGE]
blasted ahead to a new high on triple average trade following a two-day
pullback…Curagen [CRGN>CRGN] followed through nicely on Wednesday’s
breakout…Gene Logic [GLGC>GLGC] also located record ground after a
short-lived pause…Medarex [MEDX>MEDX] lifted off anew after forming a
one-week triangle pattern.
The bond went out at 6.477%, with the
contract finishing off 4 ticks.
Not much to argue about in Thursday’s
trade. A real Santa Claus rally.
Also, see
Marder On The Market, a weekly look at intermediate-term stock
trading.