HOTT is an IBD stock. Nice chart..
I am finding some good ones in the Big Picture page..
MTON..FEIC..BEIQ..SRDX.. to name a few...
Here is todays report from IBD...
< The Big Picture
Thursday, May 24, 2001
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Nasdaq Stumbles Amid Weak Chip Report
Investor's Business Daily
The stock market took its biggest tumble in weeks on Wednesday. But not much trading volume greased the slide.
Politics got part of the blame for the decline.
Sen. James Jeffords of Vermont delayed until Thursday his widely expected decision to jump to the Democratic Party from the GOP. The move would give Democrats the upper hand in the Senate, impeding President Bush’s agenda.
The chip equipment industry’s lowest book-to-bill ratio in a decade triggered sell-offs on the Nasdaq. Applied Materials (AMAT) gapped down and lost 3.65 to 52.94. But volume was 34% below average. Cabot Microelectronics (CCMP) slumped 9.76 to 66.55. Despite the 13% drop, Cabot’s volume came in slightly below average.
The selling spilled over to chipmakers. Thirty-six stocks dropped anywhere from 5% to 15%. Microsemi (MSCC), one of the few techs to hit new highs in recent weeks, fell 5.82 to 55.58. The maker of power-management chips remains well above last week’s breakout point near 48.
The book-to-bill wasn’t responsible for all the weakness in the chip sector. Semtech (SMTC) met estimates late Tuesday, but warned second-quarter profit would fall short. Wall Street was expecting 15 cents a share, more than twice the 6 to 7 cents the company now says it will deliver.
Biotechs, especially genome research firms, also had a rough day, losing 3.2% overall. Genzyme General (GENZ) sank 4.83 to 104.63. Abgenix (ABGX) fared worse, skidding 5.72, or 13%, to 39.84 on above-average trade. Human Genome Sciences (HGSI) fell 6.05 to 67 on brisk turnover. But Genome Therapeutics (GENE) bucked the downtrend, rocketing 4 points, or 42%, to 13.50. A positive report by a Ladenburg Thalmann analyst unleashed a wave of trading. More than 11 million shares changed hands vs. the stock’s average daily volume of 135,000.
The Nasdaq bore the brunt of the selling. It gave back 3%, the worst showing since a 4.8% loss on April 23. But as was the case a month ago, Wednesday’s decline came on lighter trading. Nasdaq volume retreated 19% to a below-average 1.88 billion shares.
The Dow industrials dropped 1.35% while the S&P 500, which has more tech exposure, lost 1.55%. NYSE volume also eased, falling 8% to 1.15 billion shares.
There wasn’t a lot of power behind the selling, which is just what you’d like to see. But many investors remained skittish. They’re not on board with the new bull market. Any bit of perceived weakness sends them scurrying to bearish puts or short sales. Both have been increasing, which keeps the market supplied with a healthy dose of skepticism.
In fact, the short interest ratio is higher than a week ago when the market kicked off its latest move up. At some point the losses will become intolerable for investors who have sold borrowed shares from their brokers in hopes of buying them back at a lower price. They’ll be forced to cover their losing positions, which will give the market an extra boost of buying.
Short sellers and option players aren’t the only folks questioning the rally. The weekly survey of bullish investment advisers logged a decline. Bulls dropped to 47.9%, which is good. The market is better off if optimism stays contained.> |
