Common Threads
When stocks within a group set up in tandem, it is often a sign of things
shaping up for another move. A good example is taking place right now in the
semiconductor index
(
$SOX.X |
Quote |
Chart |
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PowerRating), where several issues are setting up in
pullback after recent surges higher.
10:51:49
Applied Materials (AMAT)
appears ready to resume its uptrend out of a pullback. AMAT is currently up
0.58 to 50.07 and carries a
3-month relative strength rank of 86 from TradingMarkets.com.
12:46:13
KLA-Tencor (KLAC)
is bouncing out of the pullback to the 20-day moving average. The stock is
is currently down 0.75 to 64.00 and carries a
3-month relative strength rank of 90 from TradingMarkets.com.
Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating) is a similar-looking chart.
When you see common threads like these, watch for a new leg up,
or down, if several weak related issues trace out similar charts.
Until tomorrow,
Duke