Chips Ahoy II
Thursday was
a carbon copy of Wednesday — but better.
Good move. Good volume. Good finish.
More constructive action in the semis.
Buying in the glamours.
Buying in the bells, this time
including Cisco
(
CSCO |
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News |
PowerRating) (+8%, a day after its heaviest volume session ever)
and Sun
(
SUNW |
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PowerRating) (+10%).
Over its past eight outings, the Comp
has shown the exact price/volume characteristics that one wants to see.
Feature of the day: More bad news on
the semiconductor front was ignored by the market, in keeping with a recent
trend.
A number of negative analyst remarks
on the group surfaced Thursday from the likes of Merrill, Solly, and Lehman.
For example, Merrill Lynch
(
MER |
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PowerRating)
lowered revenue and earnings estimates for Intel
(
INTC |
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PowerRating), Advanced Micro
Devices
(
AMD |
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PowerRating), the Texan
(
TXN |
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News |
PowerRating), Linear Technology
(
LLTC |
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PowerRating), and
Analog Devices
(
ADI |
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News |
PowerRating). Every stock rose, and, except for Intel (+1%), the
gains were not trivial. AMD +6%, TXN +6%, LLTC +7%, and ADI +6%.
As well, Yahoo!’s
(
YHOO |
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PowerRating) CEO
lowered its ’01 guidance — and the rest of the Nets shot up.
This is the type of behavior —
ignoring bad news — that must happen to end a bear market.
Moreover, this is a good example of
why focusing on the news alone does far more harm than good.
This is because the market is a
discounting animal.
Today is not important. The outlook
for tomorrow is.
Today is important only to the extent
that the unexpected occurs which changes the outlook for tomorrow.
Among the names, PeopleSoft
(
PSFT |
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PowerRating)
hurdled the top of its nine-week, W-shaped base on strong turnover.
Cabot
(
CCMP |
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PowerRating), mentioned
Wednesday, and the best looker in the semis, put in its biggest volume day in
three months as it rose to within striking distance of the top of its base…it
is desirable to see volume spike at the top of the right side of the base.
Americredit
(
ACF |
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PowerRating), mentioned
Monday, blasted out of a three-month base on very heavy turnover.
Aremissoft
(
AREM |
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PowerRating) also cleared
the top of its sloppy pattern, though on mediocre flow.
Eclipsys
(
ECLP |
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PowerRating), mentioned
Monday, moved to within a fraction of the top of its sloppy eight-week base.
Kohl’s
(
KSS |
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PowerRating), which Wednesday came
out of a Connors-Cooper 1-2-3-4, moved up to within a stretch of new high
ground.
Merrill Lynch
(
MER |
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News |
PowerRating) came to within
a quarter of the top of its four-month base…volume was good.
Synopsys
(
SNPS |
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Chart |
News |
PowerRating) crawled out of a
seven-month base on explosive trade.