The Dry-Up

Profit-taking —
and tears — were at a minimum.

More constructive action on a few
fronts.

The bells, easing on a dry-up of
activity.

Dell
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, losing all of 1/8
after warning.

The retailers, extending their
five-month period of outperformance, continuing to suggest that the landing will
be soft.

The semis also acted well; lower, but
on drying volume.

Among the names, IXIA
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popped out of an 11-week base on big volume.

IXIA has big earnings, big revenue
growth, hit a fresh high miles ahead of the rest of the market, represents
“something new,” is in a growth group, and is a complete unknown to
99% of investors.

In other words, IXIA is the exact type
of stock that often leads the market out of a severe correction or bear.

Thus, its behavior over the next
sessions and weeks will be of some interest, though there are few other
“new names” acting anything like IXIA.

Microsemi
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put in some more
handle-building.

Alliance Capital
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AC |
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, near the top
of its four-month base, eased for the second day on dimming volume.

Peoplesoft
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nudged up to
the top of its handle.

You can count on one hand the number
of growth stocks that have broken out and followed through.

A few more have taxied into position.

Now that bad news is good news — at
least for the moment — these stocks’ behavior will be important.

In the meantime, the dry-up in
turnover in many key issues Monday was one small step in the right direction.