Back-and-forth it goes, where it stops, nobody knows.
was back on the warpath, gaining 228.68 points, or 6.6%, to 3711.16. The recovery actually began
yesterday, when the Nasdaq cut what was a 300-point loss nearly in half in the last half hour of trading, then opened with a 100-point gain today and again rallied hard in the final hour of trading.
TheStreet.com Internet Sector
index closed up 63.89, or 8.5%, at 818.56 as beaten-up Net stocks also took part in the rally.
Among the best performing Net stocks,
closed up 31 1/16, or 31%, at 130;
closed up 30, or 35%, at 116;
ended up 27 1/16, or 19%, at 171;
finished up 13 3/8, or 25%, at 67 3/8;
added 12 1/2, or 23%, at 66 1/2;
climbed 5 9/32, or 130%, to 9 11/32; and
ramped up 4 5/8, or 40%, to 16 1/16.
Barry Hyman, senior market analyst with
Ehrenkrantz King Nussbaum
, said he takes more of an investment perspective than a trading perspective and recommends investors do the same. Hyman said he has been increasing his weighting in tech on down moves and looking beyond the short-term volatility to what he thinks will be the next major broad-based move in technology in the mid-summer.
Hyman said he relies on fundamentals as well as technicals and a combination of those suggests there could be some bottoming in the market. He said the Nasdaq has been reaching higher lows since reaching 3227 on April 17, which could indicate it was attempting to bottom. While he understands that many pure technicians still contend that the market will more closely test the bottom and has still not seen a day of capitulation that could convince them that a bottom is in place, he said 20 years of experience in the market give him "a feel" that the worst may be over.
That said, Hyman does not see a full-blown rally back to 5000, but more of what's been seen over the past few weeks. He said that once earnings season has passed, focus will be more on the
and the potential for rate hikes. He said he sees the Nasdaq trading in a range between 3200 and 4300, but did not expect the Comp to trade down to the 2900 or 3000 level. He said that the move higher would come with less participation than previous rallies, particularly in the Internet sector, where the weeding-out process was going on. But he said that what's going on in the sector is not too different from what happened last year and what is traditionally a weak period for tech stocks.
When we last
heard from Hyman on April 14, he recommended buying
and he said the HOLDRs were up 15% from that time. He also said at that time he was buying
, which tanked yesterday, though Hyman said they did not get aggressive with Microsoft, but were now beginning to increase their weighting in Mister Softee.
Other technology stocks Hyman said he was getting into were
. Hyman said his firm's growth fund had a 19%-to-21% weighting in tech, with the goal to increase it to 25%.
"We're not going to be aggressive chasing technology stocks here. We're willing to buy on any pullbacks and any declines that look good to us."