Friday, July 07, 2000

Keithley Instruments - KEI

The stock of the week is Keithley Instruments (KEI). Back in early March to Mid April the Nasdaq fell close to 40%. A bright star on the horizon was setting up one of the most explosive set ups, the famous William J. O'neil cup with handle. As the market rallied on 4/19/00 institutions bid up KEI almost 6 points (A) on over twice the average volume (B). As the market began tradeing sideways for four weeks, KEI gaps (C) out of it's base on over triple average volume (D) to a new record high. The stock then ran 221% over the next four weeks, until it reversed course on 7/5/00 (E) on heavy volume (F), and followed through to the downside on 7/6/00 on even heavier volume. This reversal is interesting as KEI is the leader in the Electronic - Instruments group. This breakdown could be a precursor to the action of other stocks within this group. Either new leadership will evolve within this group or a new group will come to the forefront.
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