Fed Up
Just another
nonevent, Tuesday’s Fed announcement.
In its wake, the Naz barely eked out
its fifth accumulation day in the last 10 outings, versus no distribution days
in this span.
Otherwise, the expected is not what’s
important in the stock market.
It’s the unexpected
that truly counts.
And so when you see a marquee glamour
break out of a base that’s as handsome as they come presently — only to see the
most minimal of follow-throughs amid volume that’s about 20% less
than average — you pay attention.
The marquee glamour of interest here
is Broadcom
(
BRCM |
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PowerRating).
The message is simple: If the
prettiest ones aren’t “making it,” the market is just not ready to
accommodate the others.
In other words, the same message that
the market has been trumpeting for some time.
Among the names, a few made noises.
Juniper
(
JNPR |
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highlight, up 7% on average turnover to clear a five-week, V-shaped pattern.
Ciena
(
CIEN |
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to a fresh high on heavy trade after successfully recovering from Friday’s
obvious, top-of-the-range distribution.
In the semis, many stocks are standing
right at prior resistance, and have their work cut out for them.
Of the chips that are at or near their
prior highs, Analog Devices
(
ADI |
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just beneath its all-time best.
Elsewhere in this group, the best
looking setups come from the communications subsegment (no surprise there).
Applied Micro
(
AMCC |
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from virgin turf, though it could use a mite more basebuilding.
Elantec
(
ELNT |
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sloppy consolidation.
Globespan
(
GSPN |
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constructively, but still needs to put in more time.
IXYS
(
SYXI |
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recovering from a sharp, V-shaped bottom formation.
Ditto for Integrated Device
(
IDTI |
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PowerRating).
Intel
(
INTC |
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its old high, but like so many other stocks, did so quickly, and needs to back
and fill before an attractive entry will present itself.
The same goes for Linear Tech
(
LLTC |
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PowerRating),
as steady a grower as can be found in the entire chip group.
Another steady Eddie, Maxim Integrated
(
MXIM |
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point.
Micrel
(
MCRL |
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forming a handle to go with its five-month cup and is under extreme
accumulation.
PMC-Sierra
(
PMCS |
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of the best bases in the growth complex, and is bubbling just beneath a
short-term pivot…it, too, sports the “V” look, quite fashionable
these days.
The same goes for Plexus
(
PLXS |
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PowerRating).
Transwitch
(
TXCC |
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best lookers in the group as it shows a superb tape.
Semtech
(
SMTC |
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PowerRating) may be beginning
to form a handle to accompany its five-week cup.
To sum, among chips that average
300,000 or more shares in volume, intermediate players will find Globespan,
Micrel, PMC, Transwitch, and Semtech worth watching.