An opinion..
<<Yesterday's 32 point decline in the DJIA was not really representative of the damage going on in the broader marketplace. The Nasdaq 100 and the Composite got hit for 2 1/2 and 2% respectively, the NYSE had net, 1000 decliners on the session and the broader Value Line Index was down the equivalent to 90 DJIA points. It was the first day in quite a few sessions where most of the momentum names were down 8-10 points and stayed there. Yet, no matter how negative things were Tuesday, the DJIA does have first support only 100 points down from the close at 11,160, and I think that will hold the line. The DJIA remains in position to re-engineer yet another blast-off as long as the 10,950 level is as deep as the decline gets near term. With Microsoft looking to get into the game here, anything is possible after it's 6 month's of basing. If it wants to run, for whatever reason, the stock has big potential if price and volume start moving to the upside. It still remains a game of buying only relative strength/momentum names, as all valuation measures have long since been thrown out the window. As it has been for the last two years, is currently, and will be until this leg of the bull market comes to an end, value is out and only the highest of flying/large cap names can truly outperform. Dumb, but true. >>
|
