Puzzle Solving

• May 9, 2002
• Duke Heberlein

Getting a feel for the market when major news hits the tape is sometimes as
simple as just paying attention. The Cisco news this morning is one of those
times. When it announces before the bell that it beat the estimate by two cents
per share and buoys the futures, the stage is set for the market to run.

 

 

The semis are a leader of the market, and when the market goes
up, the semis are going to lead it if the rally is going to be anything
sustainable. With Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating) being a tech bellwether, if you look at
stocks like Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating) and play the first pullback, you have pieced
the puzzle together.

 

 

Major news events don’t happen every day, but analyzing them is
not as hard as it may seem. When they do occur, watch how the market reacts. A
little observation can go a long way toward paying off for you. 

Until tomorrow,

Duke