Black Box - BBOX - close: 30.45 change: +0.20 stop: 28.69
Equities rallied sharply once the U.S. huge aerial bombardment of Iraq kicked off on Friday afternoon. The breadth of those gains wasn't quite as widespread as recent rally days - particularly in the tech sector. An earnings warning from Intuit (INTU) and an ongoing hangover from Oracle's recent disappointing earnings report conspired to send the GSO.X software index to a 2.2% loss. Networking giant CSCO also underperformed the market with a loss of nearly 1%. This prevented the NWX.X networking index from joining stronger tech components (such as the SOX.X) in the intraday rally. For its part, BBOX continued to trade in a tight range on relatively light volume. Late-session gains pushed the stock off the $30.15 mark, which acted as a price magnet for much of the day. The sector weakness that was displayed today is a concerning development for the bulls. But from a technical standpoint, it's encouraging to see that BBOX traced a higher high and higher low after rebounding from psychological support at $30.00. Conservative traders may want to place their stops slightly below that level. We'll probably tighten our stop if BBOX continues to trade sideways.