Relief Rally!

  • July 20, 2004
  • Tim Truebenbach


A relief rally was overdue and that is just what the market
delivered on Tuesday.  If there is anything
more to it than a quick bounce, volume will have to drastically improve.

 


 

1,865 provided the support
for the NASDAQ but may not last for long under the current conditions of
above-average volume declines and no leadership.  Qualcomm (QCOM),
Research in Motion (RIMM), Yahoo! (YHOO) and
Ebay all buckled quickly to the market’s
latest downdraft.

 


 

The semis (SMH) continue to
act poorly and indicate that this rally may be a perfect place to short into
if that is your cup of tea.

 


 

Don’t get me wrong, as poor
as this market looks right now, shorting is almost never easy and should be
done with extreme caution or not at all.  The best alternative is to simply
sit it out on the sidelines until market conditions improve.

 

Tim Truebenbach