General Commentary -from briefing.com...
On the surface there was nothing spectacular about Monday's session, unless, of course, you are so depressed by the relentless decline over the past month that a 8 point gain now qualifies as an exciting development... All joking aside, there were some reasons to get excited about yesterday's action.
First, the Volatility Index (VOX) moved to a level recently associated with short-term bottoms... Second, although the number of stocks setting 52-wk lows on the Nasdaq trounced the number establishing new highs, up volume exceeded down volume... Third, Qwest (Q) rallied nearly 10% despite issuing a profit warning... Fourth, a few chip companies reaffirmed guidance, suggesting that the upcoming warning season might not be as negative as investors currently fear.
While none of these developments guarantee a near-term rebound, taken together they provide the most convincing argument for a recovery rally we've seen in weeks... So if the sector is finally about to turn higher, which stocks will lead?
For some ideas, see yesterday's Story Stock on Volatility issued by my colleague Pat O'Hare... Some other names to consider include Openwave (OPWV), Checkpoint (CHKP), EMC (EMC), Nokia (NOK), Sun Micro (SUNW), Siebel Systems (SEBL) and Veritas (VRTS).
Robert Walberg |
