What’s Important In This Market

This
market just wants to rip higher!

Just when the major averages appeared overbought and showing distribution (1/13/04),
we see a nice showing of support today (1/15/04).

image src=”https://tradingmarkets.com/media/2004/Tim/tt011504-01.gif” />

image src=”https://tradingmarkets.com/media/2004/Tim/tt011504-02.gif” />

Yahoo!

(
YHOO |
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PowerRating)
and Intel
(
INTC |
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appeared to be the market’s undoing at the opening bell. The former fought
back in true leader-quality fashion, while the latter didn’t seem to impact
things to the downside.

image src=”https://tradingmarkets.com/media/2004/Tim/tt011504-03.gif” />

Genprobe

(
GPRO |
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and Invitrogen

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IVGN |
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are showing that Biotechs should not be counted out, after months
of listless trading.

image src=”https://tradingmarkets.com/media/2004/Tim/tt011504-04.gif” />

image src=”https://tradingmarkets.com/media/2004/Tim/tt011504-05.gif” />

^Next^

The BBHs haven’t seen
much recent action but have been one of the leading groups since the March 2003
rally began. This rally has shown consistent rotation between the leading Internets,
Consumers, Homebuilders, Biotechs and Semis. Now is probably not going to be
any different from what we are seeing.

image src=”https://tradingmarkets.com/media/2004/Tim/tt011504-06.gif” />

image src=”https://tradingmarkets.com/media/2004/Tim/tt011504-07.gif” />

Breakouts have been occurring
en masse, but each one has not provided a smooth ride. Ultratech

(
UTEK |
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News |
PowerRating)
tried a move on Tuesday but failed.

image src=”https://tradingmarkets.com/media/2004/Tim/tt011504-08.gif” />

Microstrategy

(
MSTR |
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PowerRating)
and Supportsoft
(
SPRT |
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News |
PowerRating)

are undecided, as they are consolidating after recent breakouts, but have not
yet shown good gains.

image src=”https://tradingmarkets.com/media/2004/Tim/tt011504-09.gif” />

This is definitely a market
to be part of on the long side, but what’s important is how much exposure one
takes on with one’s account. Trading breakouts has worked out well along with
holding onto strong names that produce big moves very quickly.

Have a great weekend!

Tim Truebenbach

timt@tradingmarkets.com