Encouraging, Inconsequential
Tough to draw
much of a conclusion Monday, what with turnover so skimpy.
Nevertheless, the signs were
encouraging.
Our Group of Seven (see
my June 6 column for an explanation) rose, with six, Techne
(
TECH |
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PowerRating),
Corning
(
GLW |
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PowerRating), Sanmina
(
SANM |
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PowerRating), Newport
(
NEWP |
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PowerRating), Keithley
(
KEI |
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PowerRating),
and SDL
(
SDLI |
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PowerRating) each up at least 6%…all six moved up on above-average
activity, a plus.
Among the benchmarks, nothing occurred
to arouse suspicion in the wake of a few disappointments last week (see Friday’s
column).
EMC
(
EMC |
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News |
PowerRating) did get distributed, but
the selling pressure was light.
Intel
(
INTC |
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News |
PowerRating) hung in nicely as it
forms a handle to go with its 12-week cup.
Ditto for Oracle
(
ORCL |
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News |
PowerRating).
Nokia
(
NOK |
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Chart |
News |
PowerRating) retreated for the
fourth time in five days, with all four losses coming on higher volume.
Cisco
(
CSCO |
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Chart |
News |
PowerRating) successfully tested
minor support as volume swelled 54%.
Nortel
(
NT |
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Chart |
News |
PowerRating) is in the handle phase
of an O’Neil cup-with-handle…its behavior will be important to note given its
status as one of the first bells to approach record turf.
Within the glamour complex, 2.5 issues
rose for each loser. Good.
Among the names, Redback
(
RBAK |
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News |
PowerRating)
was a standout, looking quite healthy (but not buyable yet) as it scales the
right side of its three-month cup…for the most part, the volume has been in
all the right places.
Advent Software
(
ADVS |
Quote |
Chart |
News |
PowerRating) appears to
be forming a handle to go with its three-month W-shaped base.
Amphenol
(
APH |
Quote |
Chart |
News |
PowerRating) is in the handle
phase of its eight-week cup-with-handle.
Art Technology Group
(
ARTG |
Quote |
Chart |
News |
PowerRating)
lifted nicely out of a three-day pullback…this is an example of price/volume
action at its best.
Check Point
(
CHKP |
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Chart |
News |
PowerRating) found support
near the bottom of its three-week range…despite Thursday’s breakout failure,
traders should keep this one on their screen.
Ciena
(
CIEN |
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Chart |
News |
PowerRating) acted well as it
neared a 13-week high.
Ditto for Cor Therapeutics
(
CORR |
Quote |
Chart |
News |
PowerRating).
Cree
(
CREE |
Quote |
Chart |
News |
PowerRating) halted a four-day
losing spell as it traces a lower-level handle to accompany its W-shaped base.
Flextronics
(
FLEX |
Quote |
Chart |
News |
PowerRating) bounced off
the bottom of its handle as volume rose.
I would not get too negative over the
Naz’s failure to hold above its recent two-week trading range.
Yes it’s a minus, but not a
significant one. When a market comes down as extensively as this one, the
backing-and-filling process is not as "clean" and swift as a market
that’s recovering from an 8%-12% licking.
This market needs time, which you
should allow it.
The fact that the
speculative growth stock leadership remains largely intact and the fact that we
have not seen much distribution in the Comp, tells us not to get too concerned today.
Of course, tomorrow is
another story.
But, as intermediate
traders, we can only play the game for today.