Dale:
I agree this morning's low may put a "relative" bottom for many
leader NUTs. For example, EBAY at 70 was a great buy. EELN
at 18 was a steal, also STRM at 26 was irresistable.
In short term, it is highly likely that NUTS are going higher.
However, my guess is that the technical damage in the entire
NUTs sector is too severe to overcome by just one rally. So, I do
expect they come back, not necessary to the exact point, to
this morning's level once again before a new uptrend is
formed.
Of course, it is also possible that the new trend already started.
But, I want to see the rate worry disappears first. Without
such assurance, I think nuts will pull back when this rally hits
the immediate overhead resistence at the broken 200 dma. For
example, YHOO is likely to pull back from 138, AMZN from 110
and EBAY from 110.
Of course, if rate worry disappears, buy all you can and hold them
until X-mas season:) |
