We've got bids in the right places

The market has rebounded from its lows, thankfully so. Admittedly, we were biting our nails as to whether or not the stock market was going to force us to stop out of some of our recently purchased positions. We chose to stay the course mainly due to the out-performance of some of our key names. They are as follows: Baidu (symbol: BIDU), Broadcom (symbol: BRCM), Compuware (symbol: CPWR), Cisco (symbol: CSCO), Emulex (symbol: ELX), Google (symbol: GOOG), Hewlett-Packard (symbol: HPQ), Ingram Micro (symbol: IM), Lucent (symbol: LU), Motorola (symbol: MOT), Marvell (symbol: MRVL), and Taser (symbol: TASR).

Throughout most of the day our portfolio managed to stay in positive territory. This was despite the NASDAQ being down approximately 0.5%. This relative strength in our portfolio was an indication to us that there were bids in many of the higher beta names that we own. When the high beta names show relative out performance versus the overall market indexes, it is a tip-off to the stealth bid. Often traders can use there own style and holdings as a gauge to the underlying strength of the market. While the day is not over, we are pleased to see the bids in the right places (unfortunately some traders are their own best contrary indicators).

Should the market take off from here, it will have done so after once again testing the lows. Therefore, we may slightly raise our target price on the NASDAQ for this expected oversold bounce.

Back to you soon…

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