Hidden Meaning
Though
Monday’s scrawny volume was meaningless in the grand scheme of
things, the underlying accumulation in many speculative growth-stock glamours
wasn’t.
For deep beneath the surface of the
popular averages, the buying in vogue names was broad, with winners up over
losers by more than 2 to 1.
All stocks in our Group of Seven (see
my June 6 column for an explanation) located the winner’s circle, with two
up 14% each (Techne
(
TECH |
Quote |
Chart |
News |
PowerRating) and Keithley
(
KEI |
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PowerRating)).
Most all optical plays also saw richer
quotations, ONI Systems
(
ONIS |
Quote |
Chart |
News |
PowerRating) being one exception.
Meanwhile, a number of aggressive
growth issues are completing the right sides of their cups in truly classic
style.
This sort of behavior is tailor-made
for both swing and intermediate-term players who focus on cup-shaped bases early
in a brand new market advance.
Among the names, one such issue is Art
Tech
(
ARTG |
Quote |
Chart |
News |
PowerRating), mentioned here recently as a stock that’s playing hard-to-get
from the standpoint of a trader that wants to see some sort of tangible pullback
before entering.
Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating), noted here last
week, is another such stock.
California Amplifier
(
CAMP |
Quote |
Chart |
News |
PowerRating), more
speculative than the above two issues due to its checkered earnings past, is
another.
Check Point
(
CHKP |
Quote |
Chart |
News |
PowerRating) continues to
work on its lower-level, four-week handle.
Human Genome
(
HGSI |
Quote |
Chart |
News |
PowerRating) is
constructing a looower-level, two-week handle.
If you’re attracted to the bios/genomics,
remember that these stocks are more volatile than other computer- and
telecommunications-related shares.
And the higher the volatility, the
greater the likelihood that you’ll get whipsawed out of a position.
International Fibercom
(
IFCI |
Quote |
Chart |
News |
PowerRating) is
under extreme accumulation as it ascends the right side of its four-month cup.
Institutional favorite JDSU
(
JDSU |
Quote |
Chart |
News |
PowerRating)
perked up after pulling back for the past seven days.
One B2B that’s showing nice
accumulation, though still about 15% below its midpoint, is Ariba
(
ARBA |
Quote |
Chart |
News |
PowerRating).
The below chart shows just one of a
number of growth stocks forming the right sides of their cups with haste:
The most bullish thing a market can do is show numerous growth
stocks building and then clearing sound bases of at least eight weeks in length.
The current market is doing just that.
The only missing ingredient to make the picture perfect is
volume…volume in the Naz itself and volume in some of the base-builders.
The lack of volume notwithstanding, the aggressive
intermediate-term player has found, and is finding, opportunity.
Ditto for the swing trader.