New President, Same Old Market
It all seemed
a bit too cute…no, make that waaay too cute.
You know, the theory that once GB was
declared the victor, the shot-to-smithereens Naz would suddenly spark to life,
no longer encumbered by the "uncertainty" of the election.
Unfortunately, three roadblocks stood
in the way of that.
First, GB was ahead for the past two
weeks, padding his lead, if anything, for most of that period and shooting holes
through the "uncertainty factor" argument.
Second, even if the next Congress
won’t be evenly divided — which it will — it’s the Fed’s decisions that matter
far more to the general market (as opposed
to specific sectors like healthcare and energy) than those of the president.
So, as intimated here a few weeks
back, any rally would have likely been short-lived amid the ongoing distribution
in tech.
Third, the market has bigger fish to
fry…no, make that waaay bigger fish to fry.
Such as a general economic slowdown
instigated by Señor Greenspan and his rate hikes.
The silver lining is that the market
is discounting just that, a slowdown, and not a recession.
Seeing the restaurants, apparel
retailers, and builders — all early-cycle segments — at the top of the charts
tells you that.
For now, anyway.
Of course, this is scant consolation
to the medium-term trader of growth stocks.
Eden Bioscience
(
EDEN |
Quote |
Chart |
News |
PowerRating) has held
up fairly well considering it’s a recent new issue.
Filenet
(
FILE |
Quote |
Chart |
News |
PowerRating) appears set to
test the top of its three-week zone as it sits at about the midpoint of its
nine-month saucer.
Invitrogen
(
IVGN |
Quote |
Chart |
News |
PowerRating) is one of the
top actors in the bios as it continues its nice recovery from the mauling
suffered three weeks ago.
Lincare
(
LNCR |
Quote |
Chart |
News |
PowerRating), whose RS line has
already hit new high turf, is perched at the top of its five-week base.
Over in the glamours, insult was
heaped upon injury for the likes of Ariba
(
ARBA |
Quote |
Chart |
News |
PowerRating), Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating), and
Juniper
(
JNPR |
Quote |
Chart |
News |
PowerRating).
All three appear vulnerable in the
near term given their poor close, elevated volume, and wide range.