Four Stocks Fueling The Turnaround
Blue chip stocks were weighed down by IBM,
which issued an earnings warning for its first quarter. Shares of the No. 1
computer maker tumbled 10%, to $87.20. The skid in IBM shares accounted for
nearly 70 points of the Dow Industrial Average’s morning drop.
The market averages have recouped the
majority of the early losses during this afternoon’s recovery rally with the Nasdaq
(
COMPX |
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Index
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SOX.X |
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the way down to touch the 550 secondary support level and has now retraced and
rallied to the highs of the day in positive territory. Some of the semiconductor
stocks that fueled this strong move, are Applied Materials
(
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Technology
(
MU |
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(
KLAC |
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PowerRating) and Novellus
(
NVLS |
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PowerRating).
June gold
(
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at 300.00. Its current range is 300.00 to 305.00 resistance. Gold has
a tendency to influence the movement of the PHLX Gold & Silver Index
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and some of the gold mining stocks, such as Anglogold
(
AU |
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ABX |
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PowerRating).
Newmont Mining
(
NEM |
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(
PDG |
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PowerRating). In earlier trade,
the gold mining stocks were positive, but now are lower as gold is trading
lower.
May crude oil
(
CLK2 |
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PowerRating) is trading higher today. Iraq said that it is suspending exports
for a month. Saudi Arabia has already said that they will alleviate any supply
disruptions, and they have more than ample capacity to achieve this goal. Also,
countries such as Russia have said that they will be happy to increase their
exports.
The Amex Oil Index
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$XOI.X |
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PowerRating) is trading higher today. Some of the stocks helping push the
XOI are Amerada Hess
(
AHC |
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(
COC |
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PowerRating), Chevron Texaco
(
CVX |
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PowerRating),
Kerr-McGee
(
KMG |
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PowerRating), Phillips Petroleum
(
P |
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PowerRating), Sunoco
(
SUN |
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PowerRating) and
Unocal
(
UCL |
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PowerRating).
The PHLX Oil Service Sector Index
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$OSX.X |
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is stronger today. Some of the stocks that are helping push the OSX are:
Smith International
(
SII |
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PowerRating), Schlumberger
(
SLB |
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PowerRating), Cooper Cameron
(
CAM |
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Weatherford Int’l
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WFT |
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PowerRating), Nabors Industries
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NBR |
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PowerRating), Noble Drilling
(
NE |
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and Baker Hughes
(
BHI |
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PowerRating).
Christopher &
Banks
(
CHBS |
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resistance level. CHBS has a
TradingMarkets.com RS3 rating of 81.
Volume is very strong.
Zoran Corp.
(
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PowerRating) is pulling back to a
61.8% retracement and the 50-day moving average. ZRAN is holding a
3-month relative strength rank of 89 along with an uptrending
ADX of 36 from TradingMarkets.com.
PF Chang’s China Bistro
(
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PowerRating) is hitting
a 52-week high after breaking out of an ascending triangle. PFCB has a
TradingMarkets.com RS3 rating of 96 and an uptrending
ADX of 38. Volume is very strong.
Ryland Group
(
RYL |
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PowerRating) is hitting the top of a
triangle. RYL is holding a
3-month relative strength rank of 87 from TradingMarkets.com.
Coca Cola
(
KO |
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is breaking out of a consolidation pattern to hit a 52-week high. Coca Cola has
an uptrending
ADX of 32. An increase in volume that accompanies this breakout move
will be key.