Right Stuff
The right
stuff in most of the right areas Wednesday.
That meant markups for the bells,
glamours, bios/genomics, and most of our Group of Seven.
Though not heavy, turnover on the Naz
was above average, swelling 11%.
In the bells, EMC
(
EMC |
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PowerRating) braked a
six-day slide.
Nortel
(
NT |
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PowerRating), building a 14-week
cup-with-handle, is near the top of the benchmarks in terms of health.
Among the names, Network Appliance
(
NTAP |
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PowerRating)
continues to trace out a flat range.
PLX Technology
(
PLXT |
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PowerRating) saw order
flow slacken for the third day as it forms a handle at the top of its cup.
Redback
(
RBAK |
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News |
PowerRating), continuing to
play hard-to-get, moved up again on firm volume.
Tekelec
(
TKLC |
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News |
PowerRating), announcing that
it wants to be taken seriously, burst up the right side of its 16-week cup on
volume 265% above normal.
Tibco
(
TIBX |
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News |
PowerRating), a dynamic play late
in ’99 and during the February-March run-up, continues to come on nicely, up for
the eighth time in 10 tries…the price/volume correlation is quite compelling.
Triquint Semi continued to disappoint,
and doesn’t appear to be a factor in the near-term.
Verisign
(
VRSN |
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Chart |
News |
PowerRating), after three
weeks of droopy action in which it’s lagged many of the other glamours, sprang
to life on nearly double average volume.
Veritas
(
VRTS |
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News |
PowerRating), a stalwart
performer until two weeks ago, continues to look heavy and disappoint.
Amphenol
(
APH |
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Chart |
News |
PowerRating), a maker of
electrical and fiber optic connectors, broke out of a nine-week cup-with-handle.
Juniper
(
JNPR |
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Chart |
News |
PowerRating) is an example of a
stock that’s tough to get into as it scales the right side of its cup.
Medimmune
(
MEDI |
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Chart |
News |
PowerRating) is forming
another handle, this one directly above its prior one.
There are some intermediate market
advances in which a trader can get “bailed out” if he or she, for
whatever reason, buys something that’s a bit extended.
In some cases, the next session’s a.m.
follow-through can lift an extended stock high enough so that when it ultimately
pulls back, it does so in a manner that doesn’t undercut a 7% stop-loss point.
This is what I mean by “bailing out.”
Or in other cases, double-digit days
can leave a stock meaningfully higher than the entry point by day’s end, bailing
out a trader.
Unfortunately, this isn’t one of those
“forgiving markets.”
If your timing is not precise, there
is no bailout later that day or the next.
You’ll get stopped out, period.
This should change when the volume,
and conviction, pick up.
In the meantime, other than some iffy
action among the bells, I see nothing abnormal about this advance, coming as it
does so soon after a 41% Nasdaq drubbing.