(FOOL GLOBAL WIRE) LEXINGTON, Ky. (July 17): After a 20% correction for the Nasdaq over the last five weeks, the technology sector began to bounce back today, partly buoyed by positive earnings from Intel <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:INTC)") else Response.Write("(NYSE:INTC)") end if %>.
There's precious little to report about any of the IFG stocks other than to say that we can use the help after dropping into red figures for the year in the midst of the recent decline.
The good news is that the Relative Strength portfolios are still holding a considerable lead over the market indices for the year, even after the sell-off. Relative Strength is a good indicator of which stocks are holding up the best when the market goes through a period like this.
Keep in mind that relative strength rankings simply measure a stock's performance compared to all other stocks, not against an absolute benchmark. So it's possible that a stock will see a decline in price during a market sell-off and yet still be climbing in terms of relative strength. Such stocks are often the ones which will rebound the strongest after a correction.
One other note about IFG: if you're not a subscriber to Smart Money magazine, Tom Gardner's "Unconventional Wisdom" article in the August issue is now out and it features IFG and the community spirit here on The Fool that made it possible. Pick up a copy at your local newsstand and share it with a soon-to-be-Foolish friend.
Transmitted: 7/17/96 | ||||||||
INVESTING FOR GROWTH MODEL (7/17/96) | ||||||||
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