Snazzy Naz
Just when the bears
were getting comfortable.
It was the first accumulation day in
the Comp in over five weeks…
.
Just to put things in
perspective, remember that Tuesday’s action is just one day’s activity.
Looking back for a moment
at June 2, we also notice the Nasdaq rolled up a big gain (6.4%) on big volume,
only to falter some weeks later
The key point to understand is that
individual issues haven’t built the bases necessary to support low-risk entry
points from the standpoint of the intermediate-term player.
Yes, Tuesday was most encouraging, and
totally in line with what happens at the outset of a rate-reduction cycle.
But most growth stocks remain snowed
in with overhead resistance.
We’ll see how quickly this thaws in
the near future.
Tens dropped 9 basis points to 5.43%,
rivaling levels not seen in a number of months. Good.
As mentioned a few times recently,
Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating) has been "announcing" to all who listened that it is
THE benchmark tech in terms of health.
Tuesday, that point was hammered home
in spades as NOK shot up 15%, and on volume over triple normal.
Other bells also had nice moves, but
saw their volume pale in comparison to that of NOK.
NOK is now over two-thirds done with
the right side of its cup, far beyond what any other bell has been able to
muster.
Still early, however.
Contrast that with other bells —
stocks that haven’t printed at least one higher low and haven’t begun to
convincingly construct the right side of its cup.
Again, watch the RS line.
In case you’re wondering what might
happen to the market in case a recession appears in ’01, it is to be noted that
the market is usually more sensitive to interest rates than earnings.
For example, in ’91, rates fell amid
poor corporate earnings, and the market exploded.
In ’94, rates rose amid excellent
corporate earnings, and the market experienced a "stealth bear
market," as some put it.