News Like This
The fear of companies cooking their books and
doing offshore back room deals is still prevalent among traders today. Even with
the surprise good news that the U.S. economy unexpectedly expanded in the fourth
quarter, the markets continue to suffer. At first, the markets appeared to be
ready to have a decent opening when it was clear that consumer and government
spending surged, showing good signs that the recession that started last March
may be beginning to show sign of evaporation. However, by the time the bell rang
to open the session, the futures had dropped and have continued to do so
throughout the session.
March Futures Fall Below Support
After falling below its 61.8% retracement line
(9680.75) yesterday, the March Dow futures
(
DJH2 |
Quote |
Chart |
News |
PowerRating) are lower today,
but have now pulled up from their lows. The March S&P 500 futures
(
SPH2 |
Quote |
Chart |
News |
PowerRating)
are breaking below their 61.8% retracement (1096) today and are trending lower,
but have now pulled up from their lows. And the March Nasdaq 100 futures
(
NDH2 |
Quote |
Chart |
News |
PowerRating) are falling below their 61.8% retracement line (1508.23).
Â
U.S. stocks fell after Anadarko Petroleum
(
APC |
Quote |
Chart |
News |
PowerRating) said it misstated
profits. News like this continues to cause concern over corporate accounting
practices following Enron’s collapse.Â
Shares of Tyco International
(
TYC |
Quote |
Chart |
News |
PowerRating), today’s
most active stock, fell for a third day as investors questioned its statements.
The renewed scrutiny dragged down General Electric
(
GE |
Quote |
Chart |
News |
PowerRating), which like
Tyco has grown through acquiring existing companies. Check out Kevin Haggerty’s
opinion on the subject in today’s Views
From The Trading Desk.
AÂ news report from the Wall Street
Journal’s website says Chevron
Texaco
(
CVX |
Quote |
Chart |
News |
PowerRating) is looking to disrupt the $17.1 billion marriage plans
between Conoco
(
COC |
Quote |
Chart |
News |
PowerRating) and Phillips Petroleum
(
P |
Quote |
Chart |
News |
PowerRating). According
to the Journal, CVX wants to buy either COC or P. Shares of both Conoco and
Phillips are trading higher today. Shares of Chevron Texaco are falling lower.
Yesterday after reporting disappointing results, CVX dropped below its 38.2%
retracement line (86.95).
For a fourth session, the Biotechs are heading
lower. The Amex Biotech Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) is breaking below its
support line, which is the 38.2% retracement (493.23). The BTK is currently at
487.21, down 13.74. The Nasdaq Biotechnology Index
(
$NBI.X |
Quote |
Chart |
News |
PowerRating) is
breaking below its support and is at 751.36, down 23.31. And the Biotech Holdrs
(
BBH |
Quote |
Chart |
News |
PowerRating)
are also breaking below support and are trading lower by 2.00 to 115.80. All of
these charts have formed a rounding top and have now broken below their support.
Stocks with unusually high volume in today’s
session
Polycom
(
PLCM |
Quote |
Chart |
News |
PowerRating), after bouncing off of
its 38.2% retracement at 30.44, is making modest gains today.
Digital Insight
(
DGIN |
Quote |
Chart |
News |
PowerRating) has broken
above its 84.1% retracement at 21.59 and is trading higher today.
Bank of America
(
BAC |
Quote |
Chart |
News |
PowerRating) broke out higher
this morning and crossed above its 61.8% retracement line.
Electronic Data Systems
(
EDS |
Quote |
Chart |
News |
PowerRating), after a
big drop off yesterday, has bounced on its support and is now trending
higher.
Click here for New
60-day Highs on Double-Volume