One-Day Affair?
It’s the unexpected
that counts in the market.
And so when there was no
follow-through Monday from Friday’s dramatic a.m. reversal, you had to sit up
and take notice.
Shouldn’t there have been a
follow-through Monday that lasted more than just 20 minutes?
Yes, because the sort of dramatic
accumulation in numerous leaders that you saw Friday is an affair not normally
confined to one day.
And certainly two days now of early
up, late down isn’t encouraging.
There was precious little of positive
bent that could be gleaned from Tuesday’s dealings.
Nasdaq volume increased from Monday,
notching another distribution day for the barometer.
Meanwhile, over in the bells, little
daylight was seen as Intel
(
INTC |
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PowerRating) continued lower.
EMC
(
EMC |
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trade, which it’s entitled to do every so often.
A modest plus was the absence of
higher volume in most of the leaders as they pulled back.
This holds out the possibility of more
constructive basing work as opposed to the start of a new breakdown phase.
One example was Handspring
(
HAND |
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PowerRating).
Another was Human Genome
(
HGSI |
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PowerRating).
Another was i2
(
ITWO |
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PowerRating).
Ditto for Imclone
(
IMCL |
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PowerRating).
McData
(
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PowerRating) also hung in
nicely.
Globespan
(
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as it came under distribution, yet it’s still little more than 10% from its
pivot.
Elsewhere, a few burners flexed their
muscles.
Like Fuelcell Energy
(
FCEL |
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PowerRating) in
the hot power generation group…it pulled out of a sharp, two-week pullback to
a fresh high on volume triple its norm.
And storage area network specialist
JNI
(
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PowerRating), hitting a seven-month high on triple its average turnover.
Juniper
(
JNPR |
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PowerRating) held its own above
the pivot of Monday’s clearing from a two-week range.
Another fuel cell stock, H Power
(
HPOW |
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PowerRating)
came out of a Cooper 1-2-3-4 pullback.
I would caution against getting too
negative at this point, just as I cautioned Friday against getting too positive
in the wake of The Reversal.
For growth players, the key, in
addition to the action of the Naz, will be the behavior of the glamours, many of
which are regularly mentioned in this space.