Net Returns
Net stocks have captured the attention of institutions
and individual traders over the past two sessions. That has lifted indices that
track Net stocks from their lows.
Take a look at the Internet HOLDRs
(
BBH |
Quote |
Chart |
News |
PowerRating).
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Just look at that nice base that’s been forming for the past four months.
And look at that accumulation.
This is constructive and it’s going to be even more so if the BBH can make a run
to the highs of the base on volume surges.
Those who’ve been reading this column regularly may want to review my archives
dating back to May and June of this year. Look for articles about select biotech
stocks that were tracing out the same types of basing patterns as those we’re
currently witnessing in Net stocks. Many of those biotech bases broke out with
explosive force in early June.
Could the same thing happen with the Nets? Not necessarily. There are no
due dates for breakouts from bases. They can take many months to bear fruit.
Just keep the Nets on your radar screen for now. Watch for constructive signs
such as accumulation and sideways action to continue.
See you tomorrow,
Eddie