Scenario One Continues To Play Out
The Qs are chugging near
intraday highs at midday after an initial
test of Wednesday afternoon’s support level, due largely to positive mid-morning
comments from KLA-Tencor’s
(
KLAC |
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PowerRating) CFO
at the Bear Stearns Conference. The comments have fueled a strong turn in the
(
$SOX.X |
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News |
PowerRating) and helped to offset less-than-expected retail sales data
released earlier. Ironically, Microsoft
(
MSFT |
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PowerRating) which had been diverging from the general market to the strength
side for much of the past week, is red on the day along with Cisco
(
CSCO |
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News |
PowerRating) as the game of musical chairs in the underlying Q equities
continues.
On a longer-term basis, scenario one as presented in Monday’s
column continues to play out as eyes remain focused on the hourly chart to
see if the current price turn can hold long enough to gain a decent trend
support in terms of a stronger angled 15-MA. As I’ve said before, MAs are, of
course, boring lagging indicators depicted by a bunch of silly colored lines on
a chart (no, increasing the line size won’t increase the degree of support …
forgive me as the market turn seems to be affecting my sense of balance as I’ve
been used to tilting my head to the right looking at downtrends for weeks), but
we can debate all day the merits of boring profit guides vs. their more complex
and exciting brothers.
12:20 P.M. ET
Good Trading!