Adobe: Today’s Teflon Tech
With the Nasdaq under so much pressure during the past two weeks, it’s nice
to see a potential leader emerge that not only avoids some of the carnage but
also posts earnings that top analysts estimates. Imaging software maker Adobe
Systems
(
ADBE |
Quote |
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PowerRating) said it earned 57 cents per share for the third quarter, and
that beat analysts estimates by 5 cents.
The stock pole vaulted on this news on heavy volume. There’s an old saying
that in a bear market, nothing works. Everything just goes down regardless of
how positive its fundamental and technical outlook is. So it’s a hopeful sign to
see a stock “do what it’s supposed to do.”
Technically, ADBE has been an attractive vehicle for traders since the
beginning of the year. The stock weathered the March-April crash quite
respectably, staying above its 50-day moving average until late-July. Its
rebound off the lows of its five-month trading range in early-August helped to
maintain the stock’s 12-month relative strength ranking of 80. Today’s price
surge on nearly 400% average daily volume against the tide the negative Nasdaq,
left little doubt that ADBE was one of Friday’s teflon tech stocks.
Eddie Kwong
Loren Fleckenstein is on vacation and will return Sept. 20th.