Do Not Ignore These Signals
Trading is about getting an edge, exploiting it, and
utilizing tactics that minimize loss. Any one signal from the
Market
Bias Indicators Page can provide an edge. Three signals from the page
pointing the same way indicates a particularly strong collective bias. Today we
have a rare six market bias indicator signals pointing up, giving
a stronger-than-normal suggestion that stock index futures could move
higher.Â
Stock averages are trading narrowly mixed. The Dow is
higher on a 3% gain from General Motors
(
GM |
Quote |
Chart |
News |
PowerRating), while the Nasdaq is giving back
limited early gains garnered primarily from the semiconductor sector.
The Dow is up 59 at 10,683, the Nasdaq is down 19.09 at
2008.79, and the S&P 500 is down 1.03 at 1213.17.
In a Barrons article, General Motors CFO John Devine said
the company should earn approximately 10% more than predicted by analysts for
the year, or $4.25 a share. GM is up 2.38 at 61.73 on the prediction.
Despite the eighth consecutive decline in the
semiconductor book-to-bill ratio, a measure of forthcoming chip demand, Salomon
Smith Barney raised targets for the semi equips and forecast that the worst
will be behind the chip sector by the end of the month.
The chip index
(
SOX |
Quote |
Chart |
News |
PowerRating) started out with all 16 stocks
on the sector green, but has pulled back. The SOX is still being led higher by
equip maker Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating), +2.18 to 53.35, and KLA Tencor
(
KLAC |
Quote |
Chart |
News |
PowerRating),
+2.03 to 56.62.
Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating), up 1.00 to 49.15, is also giving blue
chips a boost and working to put the retail index
(
RLX |
Quote |
Chart |
News |
PowerRating) into the strongest
sector slot.
Oracle
(
ORCL |
Quote |
Chart |
News |
PowerRating) releases earnings results after the
close today and traders are taking a cautious stance ahead of the report,
pushing Oracle down .14 at 14.86.