Who’s Next?

July 25, 2002
Dave Landry

On Thursday, the Nasdaq opened lower and after a brief blip
higher, continued lower for most of the day. It did manage to bounce late in the
day but this wasn’t enough to keep it from closing poorly.

The S&P ended off slightly after trading lower.

So what do we do? The fact that the market could not follow
through from their Wednesday rally suggests the path of the least resistance remains
down. This is especially true when you consider the action in the semis (they
got creamed). This action makes one wonder (like Pete Townsend in 1971),
“Who’s next?” Therefore, focus on the short side but keep it
light due to the recent volatile nature of the market.