Recipe For Naught
The Naz halted a two-day rally as
volume rose to its second-heaviest level in six weeks Friday.
It is about this time that you would
want to see volume really accelerate on the downside in order to wash weak
holders out of the market and clean the slate.
Of course, what we want and what the
market gives us are two entirely different things.
As I said Thursday, observing an
institutional favorite’s reaction to a key moving average can be telling.
And so Intel’s
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like-a-hot-knife-through-butter reaction to its 200-day was a disappointment.
Applied
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casualty.
All other bells fell, excepting Cisco
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EMC
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oblivious to the carnage around it…It’s really The Last of the Mohicans when
it comes to the bells.
Of course, Oracle
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feature of Friday’s trade as it moved through its 50-day on volume over three
times usual.
H-P
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through its 200, completing a head-and-shoulders top in the process.
Among the names, Abgenix
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which staged a handsome breakout from a nine-week base Thursday, sank back to
its pivot on thinner turnover.
Optical Avanex
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bounced off its 50 on Monday, cut back through the line to the downside on big
volume Friday.
Cacheflow
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As did Check Point
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And Siebel
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Tertiaries, good barometers in their
own right, were mixed.
That meant losses for Corvis
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and Opnet
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Meanwhile, PECO
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Engines
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Interwoven
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lengthy period of outperformance, was a conspicuous winner within the glamour
complex.
Not really much to say about this one,
beyond the obvious.
That is, there remain too few growth
stocks setting up with the proper basing patterns to warrant any sort of
invested position on the part of the intermediate player.
At the same time, the bells are
crumbling and the Naz is under distribution.
In other words, an excellent recipe
for doing nothing.
Maybe not the most appetizing recipe,
but certainly one that beats any alternative hands-down.