A Four-Letter Word
The post-Fed
pullback continues.
Benchmark tech is not giving any clues
regarding the growth sector’s ability to mount any sort of sustainable,
substantial intermediate-term advance.
There are no conspicuous setups in
senior tech.
IBM
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come closest.
All the while, others, like Sun
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Oracle
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PowerRating), just look plain
heavy.
This has contributed to the 100’s six
distribution days in its past 12 outings. (For a short while, Nasdaq volume data
won’t mean as much given a reduction in double-counting of turnover.)
In other words, institutions, those
all-important players that make charts what they are, aren’t yet accumulating
tech.
This explains why the right sides of
hundreds of bases in both bells and glamours have yet to be etched.
For you newer traders who perhaps just
entered the fray in the past year or two, you may be wondering what to think of
this market, a market in which financials and energy and healthcare rise while
tech idles.
In particular, you may be having a
hard time recognizing all those chart patterns you’ve read about, the ones that
are supposed to lead to good things.
And that is the very crux of the
matter.
Those chart patterns aren’t
appearing.
At least not in growth.
Oh, there are a few here and there,
some of which are mentioned in this space. They are more for the swing player,
though, than the medium-term specialist.
But, in general, they don’t exist in
the growth sector.
In fact, this is the most objective
indicator available to the long-side-only, intermediate-term trader.
And it says that growth is not yet
ready.
Cash has been, and remains, anything but a
four-letter word.