Another “Telltail” Sign
For the Nasdaq, it
was another "tailing" experience.
That makes four distribution days in
eight attempts for the Comp.
Thursday’s action was a reminder why I
keep the Morgan Stanley Tech index next to the Naz and NDX on my screen.
The former was up 1.6%, while the
latter was off a tenth.
Despite the p.m. giveback, a look
beneath the surface showed the growth sector giving a fairly good account of
itself Thursday.
The a.m. uptrade gave swing traders
all sorts of pullback opportunities in stocks like Ariba
(
ARBA |
Quote |
Chart |
News |
PowerRating), BEA
(
BEAS |
Quote |
Chart |
News |
PowerRating),
Check Point
(
CHKP |
Quote |
Chart |
News |
PowerRating), etc.
Among the names, Ciena
(
CIEN |
Quote |
Chart |
News |
PowerRating),
bouncing off its 50-day Wednesday, showed obvious strength for the second day.
If you’re a player in the intermediate
time frame, this is the type of stand-up action you want to keep your eyes on.
In Ciena’s case, however, its
give-and-go is too sharp to offer attractive entry at this point.
Net infrastructure play Cacheflow
(
CFLO |
Quote |
Chart |
News |
PowerRating)
is a sleeper.
Recent new issue Evolve
(
EVLV |
Quote |
Chart |
News |
PowerRating) is
forming a seven-day triangle on dimming trade.
A few other recent debuts are also
holding up relatively well.
They include Pemstar
(
PMTR |
Quote |
Chart |
News |
PowerRating).
And Opnet
(
OPNT |
Quote |
Chart |
News |
PowerRating).
JDSU
(
JDSU |
Quote |
Chart |
News |
PowerRating), which couldn’t stay
above its 50-day, is now struggling to stay above its 200.
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) stood right atop its
200.
The trader can glean some valuable
information by observing a stock’s reaction to its 50 and 200.
For example, there is a big difference
between the way Ciena met up with its 50-day (it couldn’t wait to move away from
it) and the way JDSU reacted to its 50-day.
Of course the stock that
stayed well above its 50 — Ariba being one example — is the fairest of all.
In all, just another
noncommittal late-summer session.