AJ, Ralph Acampura talking about the biotechs. You pointed this out a month ago. Maybe these assholes could learn something from reading the threads.
June 4, 2002 10:01 AM ET
Weakness in Secondary Stocks Is Now Being Complemented by Weakness in Large Caps
Near-term stock market outlook:
We ended yesterday’s commentary with cautionary words: “…watch your individual stocks carefully, especially their previous
May lows. If broken, they could be subject to meaningful further deterioration.” Unfortunately, the Dow Industrials, the S&P
500 and the SOX Index all closed below their respective May lows. This puts us on guard that now the large-cap stocks could
be subject to weakness, following on the heals of softness in secondary stocks that commenced several weeks ago. Obviously,
in our view, not all stocks are vulnerable, but these price breakdowns must not be ignored. They suggest to us that some
issues have major concerns. For example, we see the Amex Biotechnology Index (BTK-381.89) as being very toppy technically.
Any close below its May low of 375.24 would be a major negative for us. On the other hand, sectors like regional banks, select
retailers, foods, tobacco, steel, and gold are attractive to us. One should be willing to move money into the more conservative
leadership that appears to be coming to the fore.
Intermediate-term levels to watch if selling gets out of hand:
-Dow Jones: 9,580
-The Nasdaq Composite: 1387
-SOX Index : 450
-S&P 500 levels: 944.75
-Sentiment: Bulls over 50%, Bears at 25% or less |
