A Clear Signal…
Blue chips struggled Wednesday after Boeing
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BA |
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missed earnings estimates,
though the Nasdaq slightly extended the previous
session’s gains after Intel
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INTC |
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quarterly report late Tuesday.
Federal Reserve Chairman Alan Greenspan told Congress Wednesday that prospects
for the U.S. economy have brightened, but sent a clear signal the central bank
is in no rush to raise interest rates. He said inflation pressures, despite
surging oil prices, are well-contained.
In midday trading, the
Dow Jones Industrial Average
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$INDU |
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lows at 10,244.51. Strong intraday support is at 10,250. A close above 10,300
would be very positive for the Dow.
The Nasdaq Composite Index
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COMPX |
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is trading neutral in the first half of trade. The Nasdaq is meandering between
positive and negative, right on its 50-day moving average at 1816. The
PHLX Semiconductor sector index
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$SOX.X |
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the tech sector with strength, but the SOX’ strength has weakened. There may be
some setups in the semis in the second half of trade. Read
Kevin Haggerty’s Views From The Trading Desk for some insight on
possible semi setups.
Other major indexes have changed little. The June S&P 500
futures
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SPM2 |
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PowerRating) has moved very little today. Support is at 1100.00 and
resistance is at 1150.00.
Bonds are lower and the dollar is weaker.
June gold
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GCM2 |
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PowerRating) is trading stronger this
morning. Gold looks to be forming a cup-and-handle pattern and
has resistance at $305.00 an ounce. June Gold affects
the movement of the PHLX Gold & Silver Index
(
$XAU.X |
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PowerRating) and some of
the gold mining stocks, such as Anglogold
(
AU |
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ABX |
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PowerRating), Newmont
Mining
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NEM |
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PowerRating) and Placer Dome
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PDG |
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are all trading higher. June gold is trading at 302.80, up 3.30.
The PHLX Semiconductor Sector Index
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$SOX.X |
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is trading higher this morning. Some of the stocks pushing the SOX higher are
Linear Technology
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LLTC |
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XLNX |
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PowerRating), Micron Technology
(
MU |
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PowerRating),
Intel
(
INTC |
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PowerRating), Altera
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ALTR |
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PowerRating) and Applied Materials
(
AMAT |
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PowerRating).
One note, Applied materials had a 2-for-1 split after the close yesterday and
has been re-adjusted for today’s trade. The SOX is trading at 617.61, up 14.07.
June crude oil
(
CLM2 |
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PowerRating) is trading
higher again today. It has touched its 20-day MA, its resistance level at this
point. The AMEX Oil Service Sector
(
$XOI.X |
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Service Sector Index
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$OSX.X |
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Tuesday Morning
(
TUES |
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high volume today. Heavy volume will sometimes proceed a price movement. In this
case, to the upside. TUES has a
TradingMarkets.com RS3 rating of 97. Tuesday morning is trading at 24.36,
up .56.
Mandalay Resort Group
(
MBG |
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PowerRating) is taking out
a double top on the daily chart. MBG carries a
3-month relative strength rank of 84 from TradingMarkets.com.
Laboratory Corp.
(
LH |
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PowerRating) is trading in a
triangle. LH carries a
3-month relative strength rank of 80 from TradingMarkets.com.
International Flavors and Fragrances
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IFF |
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PowerRating)
is pulling back to the 20-day moving average. IFF has a
3-month relative strength rank of 83 along with an uptrending
ADX of 33 from TradingMarkets.com.