Trend Less in Seattle and Every Place Else. 3-13-06

Good Evening.

The market keeps sending mixed messages to Bulls and Bears alike. Although the NASDAQ managed to post a small gain at the close, the Bears will tell you that they happily put in a double top formation at NASDAQ 2280. Not only did the NASDAQ slip a lucky 13 points from the intraday high but the breadth managed to fade as well. However, it's the close that counts and positive it was…along with the breadth. The out performance of the NASDAQ versus the Dow also bodes well for some psychological relief for the bovines.

The Bears will tell you that indications of trouble continue to be in how hard certain stocks get slammed and simply do not recover. Case in point was AMD which caught a downgrade from a rather inconsequential firm sending the stock lower by more than 7% closing near the lows of the day. On the other hand recently pummeled names in the Gold sector continued to show a sequential bounce, although still of the reflex variety.

There are names that are acting well, specifically the exchanges, i.e. NYX and NDAQ (although NDAQ was lower today it still managed to hold onto the majority of its 12% gains from Friday). Money continues to flow into the exchange stocks as well as the networking arena, specifically FFIV which has become everyone's new darling. Furthermore Cisco (CSCO) continues to act well as it digests its recent run from $17.50 to $21.00.

If You Held a Taser to Our Head:
Clearly neither side can claim the advantage in this trend less market. Ultimately Kcap is still of the mindset that the resolution will be to the upside followed by a brutal attack from the Bear. Therefore, we continue to maintain a fairly long posture in our portfolio's with a heavy concentration in Exchange, Networking, Financials, and Gold stocks. We believe that the market is likely to drift higher as the week progresses due to its current oversold condition. There is still time before the end of quarter jitters arrive for a little upside momentum to show up. Therefore, use this time to slowly position for such an event.

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