Ken Tower Stocks Quotations

Only 10 New York Stock Exchange stocks made new lows yesterday, so it's clear that there is a great deal of underlying market strength. Industrials remain the clear winner, as they reached another new high yesterday. Financials had a huge rally and also closed at a new high. Leadership will eventually shift back to tech, energy and basic materials, but we're not there yet.

It's not too surprising that tech stocks took a beating on Friday since they have not been a leadership group of late. While tech has been languishing, basic materials, energy and industrial stocks have been reaching new highs. These may be tiring, but it seems too early to abandon them yet.

Yesterday's high now become key resistance. Because the longer term trends all remain up, there are lots of support zones below current prices. The big Nasdaq stocks have been the weak link in the rally, as demonstrated again yesterday by being the only major average to fall.

This is pretty much a continuation of what we've seen for four months now. The value stocks are doing better and people are moving out of technology.

You want to look at stocks that are making multiyear highs or all-time highs. Those companies have a lot of support out there in the investment community. People think these companies are doing well, but if you want to buy a stock that's up from $1 to $3, maybe they survive and maybe they don't, that's just a riskier approach.

At this point, any rally is a good rally. You need to see more strength in the Nasdaq to confirm that there really was a significant bottom, but there are an awful lot of stocks doing very well.

And Wrigley has been very strong for some time, continues to move higher, ... Just had another breakout to a new high. There are lots of stocks in this market that are doing quite well. They just aren't technology stocks.

If (Microsoft) can stay above 80, then the whole broad sector of technology stocks may have bottomed out this week and had a re-test low and be ready to turn higher.

This rally is very fragile, as it is being led once again by energy stocks and not technology or finance. This is no time for the bulls to relax.

There's this almost universal sense that we're in this big cap-ex spending cycle and the big stocks should be moving on that, but they haven't been.

The four stocks you are adding have done much better than the four you are taking out, and they have much better prospects.