Financials Hold Up, Techs Invert
Our financials held up nicely
Friday while the bear has scared up a few more gap-down shorts and inverted
cup-with-handles.
On the upside, Student Loan
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STU |
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PowerRating)
and HCC Insurance Holdings
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HCC |
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PowerRating) consolidated following Thursday’s gains. Doral Financial
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PowerRating)
is behaving constructively as well.
On the downside, Primus
Telecommunications Group
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PRTL |
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PowerRating) and Nx Networks
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NXWX |
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PowerRating) are forming inverted
cup-with-handles.
Tellabs
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News |
PowerRating) gapped down on
huge volume, creating a potential gap-down short. (For information on this
setup, see my report, “Shorting Down Gaps,” in the short-selling
area of Special Reports in the Galleria.) The company cut its Q1 profit and
revenue outlook for the second time in a month. Tellabs expects to earn 29 cents
a share in the first quarter vs. previous guidance of 35 cents to 38 cents it
forecast on March 7.
