Are The Internets Done?

The market pushed noticeably
higher today with a broad array of leadership coming from non-tech
sectors.

 

 

Basic materials were strong, but retail names exhibited
their leadership after keeping relatively quiet over the past several weeks. 

 

 

There have been many strong names in this sector with big
names like Wal-mart (WMT pulling the Dow higher, but some of the niche
retailers have been the one’s to focus on.  Bebe Stores (BEBE) and
Urban Outfitters (URBN) provide two great examples.

 

 

Shoppers need a break and Starbucks (SBUX) has
been one to provide it as this stock continues to climb. 

 

 

In this column, we have talked before about this market
supporting a broad leadership.  This continues right now as we see internet
stock correct and consolidate while retail and other growth stocks such as
gaming — Station Casinos (STN) –  take the reigns.

 

 

Are internets names like Google (GOOG) and
Yahoo (YHOO) done?  I doubt it, especially after seeing them correct right
now.  Pulling back after a price increase is a very healthy trait and we are
seeing that a lot.  The most likely scenario is that money will return to
these sectors as well, while retail then corrects.  You probably get the idea
now of how a healthy market works. 

We remain in a good market with very strong prospects for
a prolonged run.  It is best to focus on solid set-ups that appear from the
growth sectors as well as pullbacks in leading growth stocks.