It won’t be long for Mo to Show! 3/17/06

As we predicted the NASDAQ yet again challenged its most recent high around 2324. Most Traders are aware that the more a resistance level is tested, the weaker it becomes. Therefore, due to an excellent technical setup on the charts as well as a strong fundamental backdrop and vacuum of general news flow, the NASDAQ is poised to break out from the above resistance levels in the near future.

The level of bearishness is still very high as is evident in the poor performance of the semi-conductor stocks. Interestingly, the market has managed to climb this wall of worry without this important group. As soon as the semi-conductors stabilize and start to catch a little lift, the NASDAQ will be well on its way to breaking past the overhead resistance. The move above 2324 will only be met with small hesitation at the 52 week highs at 2333. However, conditions are extremely ripe for the market to power through that level perhaps achieving NASDAQ 2400 over the next few weeks.

If You Held a Taser To Our Head: The denial from the underinvested bulls and bears alike has been the hallmark of this latest rally. Only yesterday & today has the market exhibited early signs of dip buying. Nonetheless, the momentum players are still MIA. We fully expect them to show up in force once the market breaks above 2325-2330. Your friendly neighborhood KCap team has sold down a large portion of our gold exposure and rotated into the battered semi-conductor group. We are long and strong and looking forward to seeing our old friend Mo again.

Hope you traded well!

___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (“KTB”) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (“KCAP”) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firm’s principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________

Click Here To E-mail Comments