Something Is Missing
As we saw
late this morning the breaking news of a new anthrax case at NBC News
in New York caused the markets to reverse drastically. It appears that the
markets are still very much influenced by news, and like Tim Truebenbach said in
his latest column “At this point, it continues to be important to eye
things conservatively. The market appears to be all right, but the underlying
leadership may be saying otherwise.” Ditto with this guy right here! No
putting my face in the fire, even though the markets fared pretty well for the
week.
Among the stocks exhibiting a nice
technical pattern is ironically a semiconductor company. Microsemi Corp
(
MSCC |
Quote |
Chart |
News |
PowerRating)
has been scaling a higher up the right side off a multi-week base. Lets see how
this company holds up in the near term, who knows this one may be one of the
leaders we have been looking for.
On the short side, Insight
Communications
(
ICCI |
Quote |
Chart |
News |
PowerRating) looks vulnerable as Media-Cable TV stocks continue to
perform weak. The company has an extremely high debt level (254%) and has been
showing losses over the last 4 quarters. It appears that the stock is forming an
inverted cup with handle.
Turning our attention to the ETF
arena, the WEBS-Sweden Benchmark
(
EWD |
Quote |
Chart |
News |
PowerRating) tacked on 4.5%.
The Broadband HOLDRs
(
BDH |
Quote |
Chart |
News |
PowerRating) moved
higher 3.1% as it pulls off from its lows.
And the WEBS-Austria
(
EWO |
Quote |
Chart |
News |
PowerRating) climbed
1.2%.
In the red was the Internet
Infrastructure HOLDRs
(
IIH |
Quote |
Chart |
News |
PowerRating) which slid 4.3% as it met resistance at its 50
day moving average.
The WEBS-Hong Kong Benchmark
(
EWH |
Quote |
Chart |
News |
PowerRating)
closed 3.7% lower.
And the Cyclical/Transportation Select
Sector
(
XLY |
Quote |
Chart |
News |
PowerRating) fell 2.7%
Remember that all securities are
risky. In any trade, you should always reduce your risk by adjusting position
size and placing open protective stops where you will sell your long or
cover your short in case the market turns against you. For an introduction to
combining price stops with position sizing, see Loren’s lesson, Risky
Business.
Have a great weekend and be
safe.
Greg
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