Five Strong Semis Defying The Weak Market
On this options expiration day, the major blue-chip
stocks are falling hard again. Disappointing corporate outlooks from
United Airlines
(
UAL |
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PowerRating), PepsiCo
(
PEP |
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PowerRating) and Sun Microsystems
(
SUNW |
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PowerRating) are influencing the dive. Johnson & Johnson
(
JNJ |
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also been a market downer as it is dropping on news that it is under
investigation by the Food and Drug Administration.
On the S&P 500
(
SPU2 |
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PowerRating) we have not
seen the levels we are at since October 1997. The market internals are weak
and volume is heavy during the sell-off.
The Nasdaq 100
(
$NDX.X |
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PowerRating)
pulled back at the open and touched its -1.0 Volatility band (966.40) It
then began to rally from that point, but still is in the red. The Nasdaq 100 has
been able to stay above the 950 support level, but a break below this level
could give way to the 933 secondary support level. Overhead resistance is at 995
and secondary resistance is at 1007.
Winning Sectors as mentioned earlier: Gold
(
$XAU.X |
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PowerRating)
is stronger today and the PHLX Semiconductor Sector
(
$SOX.X |
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PowerRating) is
now turning positive after opening in the red. Some of the stocks helping spark
the rally are: Applied Materials
(
AMAT |
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PowerRating), Novellus
(
NVLS |
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PowerRating),
Kla Tencor
(
KLAC |
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PowerRating), Texas Instruments
(
TXN |
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PowerRating) and Micron
(
MU |
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PowerRating). The Semi HOLDRs
(
SMH |
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PowerRating) are trading at 29.80 up .15
Gold
(
$XAU.X |
Quote |
Chart |
News |
PowerRating)
is stronger today and the PHLX Semiconductor Sector
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) is positive after opening in the red. Some of the stocks helping spark
the rally are: Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating), Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating),
Kla Tencor
(
KLAC |
Quote |
Chart |
News |
PowerRating), Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating) and Micron
(
MU |
Quote |
Chart |
News |
PowerRating). The Semi HOLDRs
(
SMH |
Quote |
Chart |
News |
PowerRating) are trading positive as well.
Fluor Corp. (FLR)
is moving lower out of a consolidation on the daily chart. FLR is down 1.98
to 30.10 and is holding a
3-month relative strength rank of 15 from TradingMarkets.com.
Nasdaq Breadth:
Adv: 941 UpVol: 260679737
Dec: 2338 DnVol: 1068891000
Net: -1397 Net: -808211263
NYSE Breadth:
Adv: 712 UpVol: 1926045
Dec: 2452 DnVol: 9489981
Net: -1740 Net: -7563936