Reading The Market’s Mind
After posting nice gains the past two sessions,
the indexes have been lower for most of the first half of trading and are now
pulling back from their highs. Nortel Networks
(
NT |
Quote |
Chart |
News |
PowerRating) said that its
first quarter sales target will be a challenge to meet because their customers
are buying less phone equipment. Communications and computer gear companies,
including Ciena
(
CIEN |
Quote |
Chart |
News |
PowerRating), Lucent Technologies
(
LU |
Quote |
Chart |
News |
PowerRating), Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) and Cisco Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating) are dropping with
Nortel, and are part of the reason for the decline in the S&P 500 Index
(
$SPX |
Quote |
Chart |
News |
PowerRating).
One area to note is the Biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating):
Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating), Genetech
(
DNA |
Quote |
Chart |
News |
PowerRating), Corr Therapeutics
(
CORR |
Quote |
Chart |
News |
PowerRating)
and Genzyme
(
GENX |
Quote |
Chart |
News |
PowerRating) are all helping to lead the Biotechs higher. The Biotech
HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating) is staging a potential false rally from lows and is hovering
around its .618 retracement level. BBH has a TradingMarkets.com
3-month RS ranking of 16. It
is up 3.25 at 122.
In the Wireless Index
(
$YLS.X |
Quote |
Chart |
News |
PowerRating), RF
Micro Devices
(
RFMD |
Quote |
Chart |
News |
PowerRating) is trying to stage a rally from a short-term
bottom. Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) is forming a potential false breakout.
VeriSign
(
VRSN |
Quote |
Chart |
News |
PowerRating) appears ready to fall out
of a false rally off its recent low. VRSN is up 0.01 at 25.69 and is
carrying a 3-month
relative strength rank of 2 from TradingMarkets.com.
Digital Insight
(
DGIN |
Quote |
Chart |
News |
PowerRating) is moving higher
out of the small triangle we profiled Monday. DGIN is now up 0.20 to 25.85
and has a 3-month
relative strength rank of 98 from TradingMarkets.com.
Hotel Reservations Network
(
ROOM |
Quote |
Chart |
News |
PowerRating) appears
to be setting up to rally from a sharp pullback from its high. On the Intraday
chart, ROOM is trending above its 20-period EMA. ROOM has a TradingMarkets.com
RS3 rating of 74 and is trading higher by 1.58 to 44.83.
Ball
(
BLL |
Quote |
Chart |
News |
PowerRating) is breaking to newer highs.
Ball has a TradingMarkets.com
RS3 rating of 92 and an uptrending ADX of 38. Ball is trading at 80.60, down
.71.