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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (10402)	1/24/2002 1:37:50 AM
From: stockman_scott	Respond to of 57684

Briefing.com's General Commentary... Threatened with its first three-day losing streak since October, the Nasdaq rebounded amid light buying in the chip and storage groups... Chip stocks were underpinned by a decent SEMI report that showed a modest rise in the book-to-bill ratio for December (0.78 from 0.73), as well as a P Morgan upgrade of semi-equipment group... Winners were led by Novellus (NVLS 39.65 +3.42), Brooks Automation (BRKS 45.14 +3.42), Teradyne (TER 28.30 +2.13), KLA-Tencor (KLAC 51.50 +3.64), Applied Materials (AMAT 41.24 +1.75), PMC-Sierra (PMCS 21.71 +1.34), Broadcom (BRCM 45.38 +1.83), Nvidia (NVDA 63.37 +1.17), Brocade (BRCD 34.80 +3.04), Emulex (EMLX 44.13 +5.53) and Network Appliance (NTAP 18.24 +1.26). While Nasdaq hasn't posted three straight losses in several months, it's important to note that index has also struggled to string together back-to-back wins over past few weeks... In fact, index hasn't rallied for two straight sessions since completing a four-day run from 12/31/01 to 1/4/02... Consequently, Briefing.com will be watching closely to see if techs can sustain bounce for more than a day... If not, would suggest that Nasdaq will remain on defensive for a little while longer... Key support comes in at 1828. Larger-cap companies with solid balance sheets and market share dominance should continue to outperform given lingering uncertainties over timing and magnitude of economic/earnings recovery... That's not to say money won't occasionally flow to second and third tier names in hot groups, but as we've seen during recent retreat these stocks can fall out of favor very quickly... Ariba (ARBA), ONIS Systems (ONIS), i2 Tech (ITWO), Sonus (SONS), Openwave (OPWV), Commerce One (CMRC), Handspring (HAND) are just some examples of stocks that rose quickly only to fall hard during the current pullback. Robert Walberg