Welcome To The New Year
More accumulation
Wednesday, less impressive on
the surface, but no less impressive given the uncertainty ahead of Greenspan’s
talk.
What with the likes of Merrill
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LaBranche
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clearing bases to new highs, the market continues to look at the slowdown as
anything but severe.
If the market was expecting a severe,
long-lasting recession, Ã la ’73-’75, these brokers would not be rolling onto
fresh turf.
That said, the market has plenty of
work ahead of it.
For instance, Microsemi
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failed on Tuesday’s breakout of its handle, serving up the latest evidence that
growth is not yet ready.
Like Cabot Micro
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PowerRating), MSCC’s
base is of the sort that would work given a Nasdaq uptrend with more definition.
Right stock, wrong market.
Given the above semi-related activity,
the behavior of Dupont Photo
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interest as it moves up to the top of its seven-month base.
Ditto for Plantronics
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telecom space.
Peoplesoft
(
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PowerRating), one of the
first of the failed breakouts from two weeks back, is forming a high handle to
go with its W base.
Alliance Capital
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AC |
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PowerRating) is coming out
of a 1-2-3 pullback in the handle of its four-month pattern.
"I buy one breakout that works,
and then I buy another that doesn’t," muttered a San Francisco hedge fund
manager, who neglected to say that the successful breakout ultimately failed.
Welcome to the New Year.