How The Market Is Smarter Than The Analysts…
I wanted to start today’s Stock Market Flash
with a link to Larry Connors “This Week’s Battle Plan” from this past Sunday.
Click Here to read it.
The reason I refer to Larry’s article before today’s
flash is in regard to readers influenced by the talking heads in the
early morning hours of the market. One analyst from the Wall Street
Journal states, “This swelling distrust of corporate America has been blown out of
proportion and overweighing the real news of the economy, which is clearly
improving,” he said. “It appears that the economy is continuing to improve,
which we believe will eventually lead to corporate profitability.” Is he right?
Some analysts are saying that the market is very oversold and is due for a
rally. The only way we will know is when the market reacts the way it wants to. In
other words, use your good judgment and try not to be influenced by other
people’s thinking.
The Dow Jones Industrial Average
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$INDU |
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did open on a positive note, then received an extra lift from a surprisingly
strong report on the state of the U.S. service sector. Wal-Mart
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is also helping fuel the upside move. The nation’s biggest retailer said sales
at stores open at least a year, including Sam’s Clubs, rose 6.2% in May, beating
the 4.7% increase anticipated by analysts. The Dow continues to trade positive
at the midday trading point.
The Nasdaq Composite
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$COMPQ |
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not trading positive at this point in the trading session. The tech-heavy Nasdaq
is suffering from a weaker semiconductor
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$SOX.X |
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$BTK.X |
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sector.
PayPal
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PYPL |
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recent high to test its 20-day moving average. PayPal has a
TradingMarkets.com RS3 rating of 97
and an uptrending
ADX
of 24.
Starbucks
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SBUX |
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intraday high and is trading on over 100% daily average volume. Daily
patterns like the one it is forming very often enter a “handle” phase around
this juncture, where price action reacts to resistance by consolidating.
Kohls Corp.
(
KSS |
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intraday highs and is forming a swing point from the trendline it bounced
from yesterday. The stock is above its 50-day SMA and is attempting to take out
recent highs on its daily chart. The stock has a TM 3-month RS of 73..
Nucor
(
NUE |
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PowerRating) is hitting a 52-week
high with increasing volume. The 20-day moving average has crossed up above the
50-day moving average. Nucor has a
TradingMarkets.com RS3 rating of 90.
Applied Materials
(
AMAT |
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PowerRating) is pulling back to test its 50% retracement line and is now
rallying from this key support level. The retracement line is on a daily chart
using the Oct 2001 low and the April 2002 high.
Nasdaq Breadth: 2002-06-05 13:49:20
Adv: 1359 UpVol: 2331074
Dec: 1871 DnVol: 6385951
Net: -512 Net: -4054877
NYSE Breadth:
2002-06-05 13:49:20
Adv: 1586 UpVol: 37195670
Dec: 1552 DnVol: 38896442
Net: +34 Net: -1700772