Why The Rally May Not Be Over

Anthrax scares on the east coast plagued a jumpy market Friday, as morning
choppiness deferred to sellers before a substantial afternoon rally pared off
some of the A.M. losses. After three fairly strong weeks, the market was due for
a pause, yet today’s action is saying the upward climb may not be over just yet.

The Nasdaq 100
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managed to claw its way back into green
territory, ending at 1703.15, up a slight 1.68. Dow Industrials
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gained nearly 150 points after the lunch break to end the session down 69.95
at 9340.56 and the S&P 500
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fell 6.17 to 1091.26.

IPO TheraSense
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saw its shares leap by more than 30% higher
in its first day of trading. THER manufactures and sells self-monitoring glucose
level systems for people with diabetes that substantially reduce the discomfort
of testing. The shares, priced at the open at $19, ended the day 6.00 higher at
25.00.

Juniper Networks
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exhibited a revival it has not seen since
the halcyon days of the internet bubble, rising after a gap to the upside to
close at 21.06, up 4.42. Similar glamour names also had good endings to the
week, with Brocade
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up 2.62 to 25.36 and Broadcom
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gaining 2.51 to 31.70 at the close of the session.

Chips continued to post gains, with QLogic
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adding on 2.82
to the weeks move to close at 37.06. Nvidia
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rose 2.43
to recapture the $40 barrier at 40.39, while PMC-Sierra
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is
making a run at $20, ending up 2.38 at 18.80. Applied Micro Circuits
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also rose by more than 2 points, up 2.26 at 13.10.

Cepheid
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rallied out of its recent pullback, gaining 2.34
to close at 7.81.

Genzyme
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was the biotech issue with the strongest
performance, closing near its intraday high up 2.30 to 53.09.

Economic report to be released Monday: Business Inventories for August.