In Strong Positive Territory…

• May 31, 2002
• Paul Letourneau

On the last day of a
holiday-shortened trading week that has seen continuous declines and
a lack of volume, the markets are in strong positive territory in today’s first
half of the trading session. The Dow Jones Industrial
Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) opened positive and began to trend higher,
forming an ascending triangle on the intraday chart. Some of the most active
stocks on the NYSE are Home Depot
(
HD |
Quote |
Chart |
News |
PowerRating)
42.01, up 1.86 or 4.63%; AT&T
(
T |
Quote |
Chart |
News |
PowerRating) at
11.89,  down 0.08 or 0.67%; Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating)
at 14.23, up 0.83 or 6.19%; General Electric
(
GE |
Quote |
Chart |
News |
PowerRating) at 31.45, up 0.25 or 0.80%; and Citigroup
(
C |
Quote |
Chart |
News |
PowerRating) at 43.72, up 0.38 or 0.88%.

As for the tech-heavy Nasdaq
Composite
(
$COMPQ |
Quote |
Chart |
News |
PowerRating), it is getting a boost today from
the Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating). The
SOX has fallen the past nine sessions to below 500. The
June S&P 500 futures
(
SPM2 |
Quote |
Chart |
News |
PowerRating) are trading strongly today as
well, up over 12 and trading in an ascending triangle on the intraday chart.

This morning, August
gold
(
GCQ2 |
Quote |
Chart |
News |
PowerRating) gapped open at the beginning of the trading session
and then pulled back to trade in a positive trading range. August gold has
influence on the movement of gold stocks, e.g., if August gold moves to the
upside, look for positive movement in gold stocks. If profit taking takes place
in gold futures today, we could see the Gold
& Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) and some of the gold mining stocks
pull back. Some of those stocks include: Anglogold

(
AU |
Quote |
Chart |
News |
PowerRating), Barrick Gold
(
ABX |
Quote |
Chart |
News |
PowerRating), Newmont
Mining
(
NEM |
Quote |
Chart |
News |
PowerRating) and Placer Dome
(
PDG |
Quote |
Chart |
News |
PowerRating). August gold is trading at $328.60, up .19.

July crude oil
(
CLN2 |
Quote |
Chart |
News |
PowerRating)
was lower yesterday because of supply and demand news, demand being lower than
inventory supplies. Today July crude oil is higher by .28 to $24.95 a barrel.
The Amex Oil Index
(
$XOI.X |
Quote |
Chart |
News |
PowerRating) is
trading positive today. Some of the stocks in this sector that are stronger are:
ChevronTexaco
(
CVX |
Quote |
Chart |
News |
PowerRating), Amerada
Hess
(
AHC |
Quote |
Chart |
News |
PowerRating), Total Fina
(
TOT |
Quote |
Chart |
News |
PowerRating)
and Phillips Petroleum
(
P |
Quote |
Chart |
News |
PowerRating).

Pepsi Bottling Group
(
PBG |
Quote |
Chart |
News |
PowerRating) is pulling back from its high and retesting its 20-day moving average.
PBG has a TradingMarkets.com RS3 rating of
81 and an up trending ADX
of 33.

NISource
(
NI |
Quote |
Chart |
News |
PowerRating)
is pulling back to test its support after breaking out with low volume a couple
of days ago. NI has a TradingMarkets.com
RS3 rating of 81 and an uptrending ADX
of 33.

Winn Dixie
(
WIN |
Quote |
Chart |
News |
PowerRating)
retouches the 20-day MA. Swing traders may want to put WIN on your watch list.
WIN has bounced off the 20-day MA twice before and is up on the day. This stock
has been in a nice uptrend and the odds favor some further upside. Also watch Albertson’s

(
ABS |
Quote |
Chart |
News |
PowerRating) which is flirting with new highs.

Nasdaq Breadth:

Adv: 1916     UpVol: 4362831

Dec: 1313     DnVol: 2678688

Net: +603      Net: +1684143

NYSE Breadth:

Adv: 2129     UpVol: 43893345

Dec: 938      DnVol: 12451410

Net: +1191   Net: +31441935