Okey-Dokey
Though not
the stuff of legends, a constructive session for the Naz,
nonetheless.
A weaker outing immediately subsequent
to a strong confirmation-sort of day, like Tuesday, are normal, healthy, and not
to be belittled.
Bottoming attempts have to start
somewhere.
In case you have a hankering to
venture off your heavy cash position and into nontech segments, you might wish
to think again.
No, not because the same setups in the
drugs or banks don’t follow through in the same way as those of the top-bunk
growth issues.
No, not because the earnings growth
rates in nontech are, by and large, significantly skimpier than tech.
The reason has to do with something
simpler.
Like the fact that the setups just
aren’t there.
Anywhere, not just in tech.
“I just don’t see it,” said
Greg Kuhn of Kuhn Asset Management.
I spent Sunday with Greg.
He’s still in cash, as well he should
be.
Among the names, Comverse
(
CMVT |
Quote |
Chart |
News |
PowerRating),
mentioned here recently, readied for launch.
Speechworks
(
SPWX |
Quote |
Chart |
News |
PowerRating) continues to
show some of the best tone in the entire glamour complex.
Ditto for JNI
(
JNIC |
Quote |
Chart |
News |
PowerRating).
Likewise for Protein Design Labs
(
PDLI |
Quote |
Chart |
News |
PowerRating)
as it appears poised to attack the top of its multimonth base.
Fuelcell
(
FCEL |
Quote |
Chart |
News |
PowerRating) staged a wedging
rally for four straight days prior to Wednesday before running into resistance
and closing poorly.
As I’ve said before, this type of
advance on drying volume often is a telltale sign of weakness and leads to
reversal. Swing traders take note.