Eighty-Two Percent Of The Time…
On the first trading day of June, the markets
are continuing their wayward ways. June’s first trading day has been up 9 of
the last 11 years. The losses on the Dow Jones Industrial Average
(
$INDU |
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yesterday.
In midday trading, the Dow Jones Industrial
Average was lower by as much as 101, or 1%, at 9824, after edging up 13.56
points in last Friday’s session.
The Nasdaq Composite Index
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$COMPQ |
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was lower by 33.10, or 2%, to 1582.60 at the mid-session of trade. One again, the
Philadelphia Semiconductor Index
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$SOX.X |
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decline. This is the tenth down day for the Semis.
The 30-year bond
(
USM2 |
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(
DXM2 |
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weeks, and investors have been concerned that it could keep U.S. stock prices
from recovering and put upward pressure on interest rates.
In Kevin Haggerty’s article this morning, Kevin
talks about overreaction zones of reversal if the negative equation plays out.
Click Here to read Kevin’s article.
This morning August gold
(
GCQ2 |
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$327.50 an ounce, but has now rallied into positive territory. Aug. gold has an influence on the movement of gold stocks.
If profit-taking takes place
in gold futures today, we could see the
Phlx Gold & Silver Index
(
$XAU.X |
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PowerRating) and some of the gold mining stocks pull back. Some of those
stocks include Anglogold
(
AU |
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(
ABX |
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NEM |
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and Placer Dome
(
PDG |
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PowerRating). Aug gold is trading at $327.60, up .10.
Anglogold
(
AU |
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pullback from high after testing its 20-day moving average. AU has a
TradingMarkets.com
RS3 rating of 95 and an uptrending
ADX of 43. Anglogold is trading at 32.42, up .36.
Meridian Gold
(
MDG |
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out its previous high at 19.50. MDG has a
TradingMarkets.com
RS3 rating of 97 and an uptrending
ADX of 31. MDG is trading at 19.21, up .19
Oil Services HOLDRS are trading near the low
of the day, and it looks like they may have broken some support on the daily.
Some of the key stocks in this group also trading near the lows
include
(
NBR |
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(
RIG |
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(
SLB |
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(
NE |
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Rowan Cos
(
RDC |
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sector, touched its 50-day MA. Oil service stocks are very weak on the day and
bounces should be shortable. RDC is looking a little extended intraday.
Ideally, I would like to see RDC bounce to the $25 area where it will
come into moving average resistance (20-MA on the 15-min) as well as chart price
resistance.Â
NYSE Market Breadth: Adv: 849/Dec: 2041
Net: -1192
UpVol: 525254 DnVol: 3527679 Net:
-3002425
Nasdaq Market Breadth: Adv: 941/Dec: 1913 Net:
-972
UpVol: 6220078 DnVol: 22455080 Net:
-16235002