Progress
This was a
constructive week for the Nasdaq.
It notched two solid accumulation
days, the first time this has occurred in the last six weeks.
And, for now, the index has passed its
Oct. 26 test of Oct. 18’s low in good form.
In the absence of an immediate-term
Fed easing, the Nasdaq market should be treated like a patient beginning a long,
recuperative process.
A process in which progress is
measured one step at a time, and in which all steps aren’t necessarily forward.
This isn’t to say that the direction
is now up, up, and away.
We will only know this in retrospect.
Traders that understand this are one
step above most other investors.
The big picture remains a tech sector
that needs plenty of repair work to heal the damage inflicted by the large-scale
markdowns of ’00.
Yes, a few growth stocks have regained
their old highs, JNI
(
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In the bells, only EMC
(
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Sun
(
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Over in the glamours, Emulex
(
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and Veritas
(
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PowerRating), as well as the bios, are some of the few that are
constructive.
The biggest challenge for the
intermediate player is to remain true to his or her discipline, a discipline
that has been repeated in this space since its inception.