Securities Research Services

Friday, January 19, 2007

Tech Takes One on the Chin

The week promised to be uneventful and when the market promises something, it oftentimes does just the opposite. The market is an unreliable friend.

Tech took a heavy hit yesterday as the QQQQ sold off on heavy volume causing a failure to occur on its recent much ballyhooed (by us anyway) breakout. We had been complaining over the past two days that good set ups were just not to be found. This should have been enough warning considering the fact that in the past when scans didn't turn up good trades it has been a precursor to poor market performance.

Dip buyers may step in and offer support here and the larger trend remains up. Even so, it pays to be careful here and any further rallies are definitely opportunities to sell and not signals to buy.

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