The Sector To Watch…

The
market took its medicine today.  I have to say, that for one day of
trading, it could have been much worse.

 

 

 

As you’ll notice in the above
charts, volume came in lighter than yesterday’s levels.  This is a good sign
because with heavier volume we would have an indication of professional
selling or distribution. 

 

Qualcomm (QCOM)
made a nice move higher on heavier volume and spent today declining in a
healthy fashion.

 

 

Yahoo! (YHOO) did just
the opposite as volume came in quite heavy.

 

 

The standalone winner of the
market still seems to be Research in Motion (RIMM) as short sellers
just continually get walloped on this highflier.  The stock added a couple
more points with volume receding.

 

 

One of the few remaining
growth stocks to have successfully broken out and held has been Axcan
Pharma (AXCA).  This stock broke into new high ground once again, but
volume was below-average.  Despite the successful breakout, it has yet to show
true strength by achieving what I call “20 in 4” status.  This means that the
stock runs up a quick 20% from its breakout point (20.10 in AXCA’s case) in
four weeks or less.

 

 

We remain in a cautious
environment.  I have indicated that if something sets up with low risk and
high reward it can be traded for shorter-term profits.  Right now, most things
seem quiet and maybe we’ll get further opportunities into this market
pullback.  One thing I would continually keep an eye on is the Semis.  SMH’s
have been a front-running indicator and if they break below 35.63 and/or
34.50, we may be in trouble.

 

HAVE A SAFE AND WONDERFUL 4^TH
OF JULY AND GOD BLESS AMERICA!!!