Hey, This Stuff Works!
Where do I
start? Just amazing how split the tape is. On one side are the S&Ls,
Homebuilders, Truckers, Railroads, Medical…you know, the exciting
stuff. And on the other side is the woeful Technology. In
case you were expecting Tech to start recovering,
you best take a look at the following charts.
This does not show the makings of a
rally any time soon. In fact, maybe just the opposite.
Veritas
(
VRTS |
Quote |
Chart |
News |
PowerRating) is the latest to gap down on a worsening outlook. You may
want to look at my July
2 report. Just another blow-up after insiders were selling at the lows. Hey,
this stuff works. You might want to print out that
list once again.
America Online Time Warner
(
AOL |
Quote |
Chart |
News |
PowerRating) gapped down and fell on 2.5x average
volume. First off, it has broken support and secondly — and most importantly —
was AOL’s news. I have been hearing for weeks from just about everyone in the
company that everything is great and they are not getting hurt like all the
others. Many of their officers have been showing up on TV with their positive
tone. Guess what? MISSED NUMBERS! So what happened?
Do I hear the word “credibility” coming into play here? Just remember,
this stock is an institutional favorite and if things continue to go
south…look out.
(
BRL |
Quote |
Chart |
News |
PowerRating) breaks out in a strong Generic Drug group.
(
KNSY |
Quote |
Chart |
News |
PowerRating) moves out on 2.5x average. Doesn’t trade a lot.
Lastly, it is topping out lesson time. Take a look at
(
MTON |
Quote |
Chart |
News |
PowerRating). I want you to
notice that this is a potential classic Double Top.
Two things: Big volume on
the drop…light volume on the rally. Notice how it rallied right back to the
old highs. Secondly, everyone loves the stock. That is when it is most
vulnerable. Let’s see what happens. We will continue to follow it.
Until Friday,