Four Sectors Every Trader Should Be Watching
The day after the market made impressive
gains,
there has been no follow-through activity as of yet. The blue chips have not
shown any signs of strength, and as of this writing, the Dow Jones Industrial
Average
(
$INDU |
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PowerRating) is forming a head and shoulders on the intraday chart.
The Nasdaq
(
$COMPQ |
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PowerRating) is being held back by
the semiconductors. The PHLX Semiconductor Index
(
$SOX.X |
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PowerRating) is
trading at its lowest levels since Dec. of 1998. The short-term bias remains
negative. Some of the stocks in the SOX taking big hits today are: Maxim
Integrated Products
(
MXIM |
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PowerRating) (- 15%), Kla-Tencor
(
KLAC |
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PowerRating) (-13%), Novellus
(
NVLS |
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PowerRating) (-15%), Applied Materials
(
AMAT |
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PowerRating) (-15%)
and Intel
(
INTC |
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PowerRating) (-7%). The next support level is around the 300
area. This area was hit earlier, which is the -3.0 Voloatility level. It has
since rebounded from this level. If the SOX can move to the upside, resistance
is at the 325/327 level with secondary resistance at the 332/333 level.
Other sectors that are weak on the day are:
Internet, Gold
(
$XAU.X |
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PowerRating), Storage, Telephone Equipment, Hotels,
Home Improvement, Electronic Retailers, Auto, and Drug Retail.
The stronger sectors on the day are:
Utilities, Biotech
(
$BTK.X |
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PowerRating) , Drug
(
$DRG.X |
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PowerRating),
Trucking, Railroad, Homebuilding, Food, Beverage, Construction Goods and Paper
(
$FPP.X |
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PowerRating).
Some stocks that are trading positive with very
strong volume are: New Century Financial
(
NCEN |
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PowerRating), J. Jill Group
(
JILL |
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Chart |
News |
PowerRating), Renaissancere
(
RNR |
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News |
PowerRating), and Flir Systems
(
FLIR |
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PowerRating).
Stericycle
(
SRCL |
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Chart |
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PowerRating)
is rallying up with very strong volume after forming a 1,2,3 higher bottom
on the daily chart.
Stericycle has a TradingMarkets.com rating of 90. SRCL is trading at
35.90 up 3.63.
Anthem
(
ATH |
Quote |
Chart |
News |
PowerRating) is rallying up with very
strong volume after forming a 1,2,3 double bottom on the daily chart. Anthem has
a
TradingMarkets.com RS3 rating of 94. ATH is trading at 66.65 up 3.64.
Once again, NYSE volume is outpacing Nasdaq
Volume
Nasdaq Breadth
Adv: 1842 UpVol: 60692865
Dec: 1350 DnVol: 82755060
Net: +492 Net: -22062195
NYSE Breadth
Adv: 1479 UpVol: 33072790
Dec: 1822 DnVol: 93137810
Net: -343 Net: -60065020