Is There A Case For Fresh Buying?
The markets continue a negative trend as the
week moves on. Next week will be a shortened trading week, and some investors
may hesitate putting money into the market ahead of a three-day weekend with fresh
terror threats. Following this logically, fresh
buying could come in next week after the holiday. This alone, however, should
not serve as a basis for any trading decision.
The June S&P 500 futures
(
SPM2 |
Quote |
Chart |
News |
PowerRating)
began to trend to the upside in the first half-hour of trading, but then pulled
back and tested one of its support levels on the day (1075.00) before attempting
to rally again. The S&P futures are negative on the day.
Click here for Lewis Borsellino’s take on the S&Ps.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating)
is managing to stay above its key support level, the 200-day moving average,
which is at 9901. Very few sectors are helping push the Dow, which is
keeping the market internals negative.
The sectors that are helping the Dow are the gold
sector. June gold
(
GCM2 |
Quote |
Chart |
News |
PowerRating) is trading higher at $318.00 an ounce. The weaker dollar
(
DXM2 |
Quote |
Chart |
News |
PowerRating) and uncertainty in the
Middle East has helped push gold higher. June Gold affects
the movement of the PHLX Gold & Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) and some of
the gold mining stocks, such as 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).
The Morgan Stanley Consumer Index
(
$CMR.X |
Quote |
Chart |
News |
PowerRating)
and the Morgan Stanley Cyclical Index
(
$CYC.X |
Quote |
Chart |
News |
PowerRating) are both
positive today, offering some green to the Dow.
The Biotech sector
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) and the
PHLX Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) have caused some of the down
pressure on the Nasdaq Composite
(
$COMPQ |
Quote |
Chart |
News |
PowerRating), forcing it to test its
1600 support level, thus far is only by a single digit.
The June dollar
(
DXM2 |
Quote |
Chart |
News |
PowerRating) continues its
decline in today’s session dropping to a 20-day low.
Smith International (SII)
is pulling back to the 20-day moving average. SII is down 1.12 to 72.70 and
is holding a
3-month relative strength rank of 91 from TradingMarkets.com.
Whole Foods Market (WFMI)
hit a 52-week high. Whole Foods looks to be breaking above a week’s worth of
congestion and may offer some further upside. Intraday, WFMI looks
extended, but should be buyable on pullbacks.
Airborne
Inc. (ABF)
is pulling back from its high to retest its 20-day moving average. Airborne
has a
TradingMarkets.com RS3 rating 93
and an uptrending
ADX
of 34. Airborne is trading at 22.15, up .17.
Volume continues at a slower pace, with market
internals negative by roughly a 5:4 margin. NYSE Adv/Dec 1416/1662. Nasdaq
Adv/Dec 1244/2054.