Tapping A Bottom
On rare occasions when the fundamentals kick in, we’ll
use volume alone as the sole indicator for
picking a bottom in a stock, but only with an outstanding earnings report. To do
this, off course, stops must be kept very close.
Network Appliance
(
NTAP |
Quote |
Chart |
News |
PowerRating) is one of the bright spots
in the session after reports of heavy demand for its network storage gear. The company which
sells its NetApp data storage and server hardware equipment to heavy-traffic
Internet sites such as Yahoo!, is rallying off lows after it nearly doubled
year-on-year earnings and revenues.
Last night’s report occurred at NTAP’s 52-week low.
Volume today will rank in the top five ever of this five-year old stock. NTAP
has responded by rallying as many as 4 1/4 to a session high of 39 3/8.Â
 
Back to technicals, Priority Healthcare
(
PHCC |
Quote |
Chart |
News |
PowerRating), in
the top 8% of all industry groups, is setting up in a cup
and handle formation on its highs, up 2 5/16 to 38 1/8. Healthcare is a
traditional defensive issue that fund managers could continue to pour money into if the economy keeps presenting more evidence of deteriorating.
Today Motorola
(
MOT |
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Chart |
News |
PowerRating)
said it would cut 4,000 employees; rumors swirled at Dell
(
DELL |
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Chart |
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PowerRating) that the
same number of employees would get the bullet there; the Motley Fool cut a third of its staff; and Credence Systems
(
CMOS |
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Chart |
News |
PowerRating) and Applied Materials
(
AMAT |
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Chart |
News |
PowerRating)
are forcing employees to take time off without pay. For workers getting the pink
slip, they may feel like they’re in need of some Priority Healthcare!
Have a good weekend.
Marc and Duke