If You Must Go Long, Try These 2 HOLDRs
The market appears to be locked in an ongoing battle
amid strong corporate earnings against higher interest-rates, terrorism and Iraq
fears. We have returned to the negative price action so prevalent in late
January and February of higher-volume declines with low-volume rallies.Â
Currently, the Nasdaq has managed to poke back above its 200-day moving average,
but volume has been very light in the rally.
The Dow and S&P 500 have found
a little more strength due to the cyclical stocks within those indices.Â
Leading stocks are all but
nonexistent. Yahoo!
(
YHOO |
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News |
PowerRating) seems to
have had a rough time with the Google news of last
week and is showing poor action in its bounce on lighter volume.
Ebay
(
EBAY |
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PowerRating)
has put up a little better fight, but the stock will most likely succumb to
selling pressure if it does continue.
If long positions are a must,
various medical names appear to be hanging in there better than other groups.Â
The Pharmaceutical and
Biotech Holders are examples as they are still above their 50-day
moving averages.
Based on the amount of distribution and selling
we have seen in the market and the weak bounce we are getting, it appears best
to lay low on the sidelines until a better market appears.
timt@tradingmarkets.com