Pocket Of Strength
The latest victims that fell to Enron-itis are
Nvidia
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NVDA |
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(
IBM |
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investigating NVDA’s record keeping, and The New York Times said that IBM
didn’t fully disclose a gain from the sale of a unit. IBM responded that they
"properly and fully” reported the transaction. This type of news continues
to concern traders that companies are overstating profits.
IBM is leading the S&P 500 Index
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$SPX |
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to a third drop in four days. Another reason the major averages have extended
their losses is because of weaker-than-expected consumer confidence data. Not
surprisingly, the total volume traded on the indices remains on the light side,
which fits with the relatively light volume experienced all week.
Oil-related stocks are moving higher today. The
PHLX Oil Service Sector
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$OSX.X |
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Stocks helping move the index higher are Schlumberger
(
SLB |
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Drilling
(
NE |
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(
HAL |
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(
TDW |
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Strength in the oil stocks is being fueled by crude oil futures. March crude oil
(
CLH2 |
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The Morgan Stanley Consumer Index ($CMR.X)
is one of the strongest sectors this morning. Stocks helping move this sector
are Newell Rubbermaid (NWL),
Procter & Gamble (PG),
Grainger (GWW),
Johnson & Johnson (JNJ)
and Kimberly Clark (KMB).
The PHLX Forest & Paper Products Sector ($FPP.X)
is trending higher this morning, up 2.76 to 349.84. Among the stocks in this
index that are up are Weyerhauser (WY),
Boise Cascade (BCC),
International Paper (IP),
Bowater (BOW),
Temple Inland (TIN)
and Williamette (WLL).
The Semiconductor Index
(
$SOX.X |
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breaking down to a new intraday low. Some names to watch in this area that
are setting up include:
(
INTC |
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(
AMAT |
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moving below its triple bottom on intraday chart, as is
(
KLAC |
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(
BRCM |
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is retesting its intraday low. $SOX.X is down 10.13 to 554.40.
Mercury Computer
(
MRCY |
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making a false rally back to the 20-day moving average. MRCY is currently up
1.24 to 35.10 and is holding a 3-month
relative strength rank of 7 from TradingMarkets.com.
Bank of New York
(
BK |
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possible false rally off its low/Dave Landry Bow Tie. BK is currently down
0.02 to 39.08 and has a 3-month
relative strength rank of 29 from TradingMarkets.com.
Mid-Atlantic Medical
(
MME |
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60-day high with strong volume. MME has a TradingMarkets.com
RS3 rating of 94 and an uptrending ADX of 56. MME was trading lower at the
opening of today’s session and has now reversed and is trading at 28.05, up .55.
Today is a Triple Witch! And Monday the exchanges
will be closed! Enjoy your Weekend!