Take Your Time
In my last report, I told you to be watching
the 870-877 for the S&P 500
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and the market would not get into trouble unless this area breaks. Well, 872 was
the low. Simply put, support held… but I must tell you, I am amazed by the
move off support… especially TECH and TELCOM. But then again, this bear market
has lifted the Nasdaq
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few times in the past 30 months in a way that amazed me.
- In
January 2001, the Nasdaq went up 28.5%Â
- From
April-May 2001, the Nasdaq went up a whopping 43.7%Â
- From
September to December 2001, the Nasdaq jumped 51.2%
Out of
each rally came lower lows. Just food for thought. As it stands right now,
TECHS, INTERNET and TELCOS are the place to be. I urge you to take your time in
these areas. Surely there have been big gains over the past few weeks… but
surely you must remember how much money was lost jumping on this pile after
every move.
Only time will tell if this move has more legs. I still have my doubts but wish
I was in. Here are some names that have moved out of sound bases. Nothing to do
with them here but potential on pullbacks.
Amazon
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volume. Yes, volume.
Safenet
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Just about the rest of the TECH and TELCO move has been stocks coming off their
deep lows.
Near-term is a little tricky. It would be normal for the market to rest here as
it bumps up near resistance. I am also not excited that bullish advisors are up
over 50% while bears are down to 28%. Put/calls also hit a low .52 reading while
the
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Lastly, while the TECHS and TELCO take flight, a lot of the market is being left
in the dust. This is not a “buy the market” deal…by no means. Sectors like
DEFENSE, HOMES, HMOS, HOSPITALS, OIL & GAS, BANKS,
RESTAURANTS, REITS, TOBACCO and misc. RETAIL
are still all in poor shape.