Is ‘The Turk’ Keeping Bulls’ Heads Above Water?

August 14, 2002
Daniel Beighley

The Bulls appear to be keeping their heads above water
for now. Volume is
still not really strong, but remember the big players like to go the beach this
time of year. Traders seemed uncertain on how
the markets would react to the “day after” the FOMC meeting. At first, it looked like a hangover from
yesterday’s drop in prices and low volume.
The only exciting market was the bonds, which were continuing their rallies to
new 20-day highs. But, by the end of the day, traders began to move into equities
and all three of the major indices closed on a positive note.

Some speculation in the bond market was that
investors, traders and portfolio managers were giving up on the US economic
recovery. The Sept. 30 year bond
(
USU2 |
Quote |
Chart |
News |
PowerRating) rallied higher to close at
111.18, up .93. The
Sept. 10-year note
(
TYU2 |
Quote |
Chart |
News |
PowerRating) rose higher after yesterday’s strong
performance, but by the end of the session, traders took their profits and began
to eye the equities. TYU2 closed at 113.23, down .07.

At one point in the first half of trading the
Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) was suffering from a triple point
loss as it dipped below its 20-day moving average (8382.59).
Then at 1:30PM ET it appeared the

“Turk” may have entered the markets. A big bar to the upside sent the
market off and running never to look back. The Dow ended positive up 260.92 to
8743.31.

The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
broke above its recovery high of 913.95.
The same type of move as occurred in the Dow mysteriously had the S&P 500
closing
at 919.62, up 35.41.

Yesterday the Nasdaq Composite
(
$COMPQ |
Quote |
Chart |
News |
PowerRating)
fell and closed below its 20-day moving average. This made the potential rally
in the tech-heavy index look like it was in jeopardy. Today in the first half of
trading, the Nasdaq had lighter volume and neutral internals. A nice reversal
with the possible assistance of the Turk pushed the Nasdaq in to positve
territory and back above its 20-day moving average. The Nasdaq closed at its
high 1334.30 an increase of 65.02 from its previous close.

Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating) is forming a pullback
after its run up from its recent low. AMGN has a

3 -month
relative strength rank of 97 from TradingMarkets.com.

Best Buy
(
BBY |
Quote |
Chart |
News |
PowerRating) is moving in a
counter trend rally on the daily chart. BBY is holding a

3 -month
relative strength rank of 14 from TradingMarkets.com.

Apria Healthcare
(
AHG |
Quote |
Chart |
News |
PowerRating) is pulling
back from its recent high. AHG carries a

3 -month
relative strength rank of 92 from TradingMarkets.com

Deluxe Corporation
(
DLX |
Quote |
Chart |
News |
PowerRating) is breaking
out above its resistance point at 44.00 with increasing volume. Overhead
resistance is at around 46.00. DLX has a

TradingMarkets.com RS3 rating of 96 and an up trending

ADX of 34.

Take-Two
Interactive Software
(
TTWO |
Quote |
Chart |
News |
PowerRating) is hitting a 2-month high with increasing
volume. A possible entry could be a break and close above the 24.00 resistance
level. TTWO has a

TradingMarkets.com RS3 rating of 94 and an up trending

ADX of 25.

Pixar
(
PIXR |
Quote |
Chart |
News |
PowerRating) is breaking out of an
ascending triangle with very strong volume. PIXR has a

TradingMarkets.com RS3 rating of 81.

Nasdaq Breadth

Adv: 2239 UpVol: 1198696815

Dec: 1105 DnVol: 206511100

Net: +1134 Net: +992185715

NYSE Breadth

Adv: 2318 UpVol: 125114350

Dec: 921 DnVol: 22792179

Net: +1397 Net: +102322171

Is ‘The Turk’ Keeping Bulls’ Heads Above Water?

BUY THE FEAR, SELL THE GREED

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