And The Wind Blows
Just another chilly
day in October.
Distribution sessions are adding up at
a rapid clip these days.
Tuesday’s in the Naz was the fourth in
six outings.
In the bells, the big news was Oracle
(
ORCL |
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PowerRating), off 12%, and on turnover greater than double average.
As I have said on more than one
occasion recently, Oracle is one of the sacred cows that are most important to
watch from a sentiment standpoint.
Another, Sun
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SUNW |
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seven-week low, though volume wasn’t heavy.
No matter. The intermediate trend is
now south for SUNW.
Corning
(
GLW |
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bouncing off its 50-day three weeks ago, couldn’t keep it together Tuesday,
slicing the line on robust volume, and being distributed for the third time in
five days.
Other benchmarks like Nortel
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NT |
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JDSU
(
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(
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(
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quite some time and tell us little about institutional sentiment at the margin.
That leaves us with EMC
(
EMC |
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PowerRating),
which for some time I’ve watched closer than any other marquee tech.
It was distributed for the third time
in six sessions, going out just a bit above its 50-day.
Among the names, the action in Ariba
(
ARBA |
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was most telling
BEA
(
BEAS |
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omen.
Brocade
(
BRCD |
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Add i2
(
ITWO |
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unwound itself to the tune of 11%, and on thick turnover…it’s now off 24% in
two sessions.
You know the saying: If
the leaders can’t lead….
Gemstar
(
GMST |
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up fairly well.
As was Human Genome
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HGSI |
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PowerRating).
Handspring
(
HAND |
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PowerRating), one of the
growth sector’s brightest lights during September’s final two weeks, shed 11% on
over double average trade to stand 36% off its absolute high of, gulp, two days
ago.
Interwoven
(
IWOV |
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PowerRating), another name
that recently tried to bring the meaning back to the word "glamour,"
shrank 9%, its close measuring 31% off its high of a week ago.
In case you’re ready to throw the
towel in on this game for good, keep this in mind: Strong year-end rallies often
emanate from a weak September-October period.
That said, holding your breath isn’t
good for your health.