A Day In The Life
Just another day in
the life of a pullback.
In a number of growth issues,
Wednesday was the sort of day that the short-term pullback player likes to see:
several days down, followed by a close at the top end of the day’s range on
volume greater than the prior day.
The Comp exemplifies this behavior.
The only problem is that a
1-2-3-4-5-6-7 pullback, which is what we’re looking at here, offers lower
probabilities of follow-through than, say, the Cooper 1-2-3-4 pullback.
So much for the pullback player.
As for the intermediate operator,
Wednesday’s action changed little, as the best actors continue to go about their
basebuilding, a positive in itself.
Tuesday, I mentioned the fact that the
Nasdaq has put in three distribution days in the last six.
Looking at the S&P, it’s chimed in
with six d-days in the last 11 sessions.
The bells all rebounded, except for
Intel
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Of course you shouldn’t draw
conclusions about the general market after just one day up in some key shares,
that is unless the move was the sort of unbelievably powerful explosion that
occurs once every couple of years.
And Wednesday wasn’t that, by any
stretch.
Among the names, BEA
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continues to act constructively as it works on a big-picture base.
Brocade
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50-day.
Ditto for Exodus
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Check Point
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conspicuous strength.
And i2
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Rather than dwell on the negatives
surrounding the current market, the intermediate trader should be looking at the
sunny side of things.
Namely, he or she should be using the
pullback in the growth sector as a prime opportunity to separate the bona fide
leaders from the poseurs.
This is the silver that lines the
clouds of uncertainty lingering over tech.