Semis Rebound, Volume Dubious

August 7, 2000
Loren Fleckenstein

Stocks moved higher Monday, led by
semiconductors, retailers and biotechs, the latter two groups including
companies set to report earnings this week. The market also saw gains in Nets
and chemicals.

The gains in chip and chip-gear makers
were particularly welcome. Semis have sat out many of the up days for the tech
sector. However, the moves still came on middling volume, and the price changes
were confined to inside days. So it’s still a watch-and-wait game for
intermediate-term momentum traders.

“Unfortunately, volume across the
board is a little anemic,” said Art Hogan, chief market analyst at
Jefferies & Co. “The most impactful economic news comes out on Friday.
And the most important economic event of the month won’t happen until the 22nd.
Money is on the sidelines until the Fed meeting is behind us, and people come
back from the Hamptons for the summer.”

Traders who are interested sectors
should check out TradingMarkets’ extensive coverage of the exchange-traded
funds and Loren Fleckenstein’s Money Flow Outlook, which goes up on
the home page at 7 p.m. ET. For indicators, education and
access to TradingMarkets’ FundScanner
database, click on the Funds tab near
the top of this page. The Merrill Lynch Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating), a basket
of 20 stocks in the chip sector, picked up 2.9% Monday.

The weakest areas were down less than
1%. The Mexico Index
(
MXY |
Quote |
Chart |
News |
PowerRating) lost 0.6%, Morgan Stanley Consumer Index 0.5%.Â

Semis Rebound, Volume Dubious

BUY THE FEAR, SELL THE GREED

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