Base-Building Financials
Not bad, not bad. I’m encouraged by
Friday’s constructive action in the financials as well as powerful accumulation
in the semiconductors. This doesn’t mean I’m declaring a bottom here. But if the
market can continue to give us more of what we got Friday, maybe in a few
months, we’ll get the breakout proliferation in our high RS, high growth stocks a playable medium-term rally.
Doral
Financial
(
DORL |
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PowerRating), a mortgage banker in Puerto Rico, moved back above its
50-day moving average, albeit on sub-par volume. HCC Insurance Holdings
(
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PowerRating)
snapped back to the upside within a three-month base. Both stocks have rising
relative strength lines moving into the new high ground.
AdvancePCS
(
ADVP |
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Chart |
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PowerRating) cleared a
five-month base on nearly twice its usual trade. On Thursday, WR Hambrecht + Co
today initiated research coverage on the pharmacy benefit manager with a buy
rating and a price target of $62.
Immunex
(
IMNX |
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Chart |
News |
PowerRating) could become a
gap-down short. The stock caught hell Friday after an overnight announcement
that Immunex had halted a trial of its rheumatoid-arthritis drug Enbrel as a
treatment for congestive heart failure. Ordinarily, I ignore gap-down shorts
which fail to close near the bottom of their range on the gap-down day. However,
the stock’s Friday intraday range is so small compared to the overall move from
Thursday’s close, I’d lift that rule in this case.
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