Nasdaq Lags in Market Bounce

Monday, June 09, 2008

Markets: Dow 12,280 (+71) S&P 1,362 (+1) Nasdaq 2,459 (-15)

Today, we saw an interesting divergence in the indexes with the Nasdaq, previously the strongest index, lagging the rest of the market. Are we seeing the beginnings of some weakness in the technology sector? While Apple had a wild ride during and after Steve Jobs' speech at the Developer's Conference it ended down slightly. Research in Motion, on the other hand, had an incredible rally at the end of the day showing a great deal of strength. We should look to RIMM for follow-through to the upside in the coming days.

My morning game plan consisted of shorts in RIMM, SOL and V. All these stocks triggered at the same time and I was only able to short V. For some reason, I had memories of Friday's difficultly in shorting that I was not nearly as aggressive as I should have been in the trade. I was still able to come away with a decent start to the day. The afternoon was an extreme struggle for me and I became very frustrated. There was a divergence in the MA and V relationship as well as the AAPL and RIMM relationship. Mastercard's bounce was not followed with strength in V while Apple's sporadic action was not followed by Research in Motion.

Tomorrow's another day!


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