Semis Dominate

• December 17, 2001
• Dave Floyd

Another
narrow range left little to do until the afternoon session when the
market came to life and put in a 8-10 point rally. The S&Ps
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
remain below key moving averages, the Nasdaq
(
$COMPQ.X |
Quote |
Chart |
News |
PowerRating) is resting
right on its 20-day moving average at 1618, and the
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), which
crashed through its 200-day moving average on Wednesday, is now finding support
at the 20-day average. As mentioned in last week’s piece, the SOX is continuing
to dominate intraday price. The poster child for rampant speculation remains the
bellwether.

Obviously, volume may taper off late
in the week as the Christmas holiday approaches, but expect some good trading as
these levels are tested and it appears as though we are getting close finishing
up business in Afghanistan. 

I will have more longer-term plays
tomorrow as well as a follow up on some recent selections.

Key
Technical Numbers

Thought For The
Week

“Speculation,
in its truest sense, calls for anticipation.” 
— Richard D. Wyckoff

As always, feel free to send me your
comments and questions. I am also looking for feedback on the longer-term picks
I profile occasionally, drop me an email good or bad. See you in TradersWire.

Dave