These Economic Reports May Hold Clues To Friday’s Direction

August 15, 2002
Daniel Beighley

Roller coaster-style, the markets were all
over the place today. And when the dust settled, all three of the major
indices almost made it back to the intraday highs. This despite the fact that
the August Philly Fed index actually dipped into negative territory in August at
-3.1 (6.6 in July). This number indicates a decline in manufacturing activity in
the Philly Fed region. It has not had a negative number since Dec. of 2001.

Tomorrow will be a full helping of economic
data with the July CPI (consensus is at 0.2%); July Housing Starts (consensus is
1.678M); July Building Permits (consensus is 1.680M); and the August
Michigan Consumer Sentiment number (with consensus at 89.0). Also tomorrow is
expiration day for August equity options.

Today the Dow
Jones Industrial Average
(
$INDU |
Quote |
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PowerRating) closed at 8818.10, up 74.80.
NYSE advancers beat decliners by 703. Up volume of 99284113 led down volume of
35101370. The S&P 500
(
$SPX.X |
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Chart |
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PowerRating) was up
10.62 at 930.24, while the Nasdaq Composite
(
$COMPQ |
Quote |
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PowerRating) finished up 10.71 at 1345.01. Nasdaq advancers led decliners by
71, with up volume of 874543506 vs. down volume of 532874020. The Nasdaq is up
13% from the July 24 low and this had been the highest close on the Nasdaq since
July 18. NYSE advancers beat decliners by 703. Up volume of 99284113 led down
volume of 35101370.

Ball Corp.
(
BLL |
Quote |
Chart |
News |
PowerRating) is setting up to
potentially trigger out of a Landry Trend Pivot Pullback. BLL is holding a

3 -month
relative strength rank of 96 from TradingMarkets.com.

Guidant
(
GDT |
Quote |
Chart |
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PowerRating)
is forming a cup–and–handle pattern on the daily chart. GDT has a

TradingMarkets.com RS3 rating of 96 and an up trending

ADX of 32. A strong break above 36.70 level with strong volume, could be
the trigger point for a new leg up.

Teva Pharmaceutical
(
TEVA |
Quote |
Chart |
News |
PowerRating) is
breaking above the resistance level with increasing volume. Today TEVA won a
court decision over generic Relafen. According to Bloomberg the U.S.
appeals court upheld a ruling that invalidated a GlaxoSmithKline (GSK)
patent on Relafen, allowing TEVA to sell a generic version of the drug. TEVA has
a

TradingMarkets.com RS3 rating of 89.

Immucor
(
BLUD |
Quote |
Chart |
News |
PowerRating)
is rallying from a pullback from the high with increasing volume. BLUD pulled
back to test its 50-day moving average and is now attempting to break above its
20-day moving average. BLUD has a

TradingMarkets.com RS3 rating of 96 and an up trending

ADX of 21.

United Technologies
(
UT |
Quote |
Chart |
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PowerRating) has been
hammered the last two sessions from the ripple affect from the Airlines ($XAL.X).
UTX looks like it has found its footing at this point. This is the 50%
retracement level (58.78) drawn from the Sept. 2001 low to the March high.
Volume is very strong once again today.

Advanced Auto Parts
(
AAP |
Quote |
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PowerRating) is
rallying from a 1,2,3 bottom on unusually high volume for this time of the day.
It is close to hitting its 50-day moving average, which also happens to be its
50% Retracement line. (The Retracement is from the Low in March to the High in
May). Support is at 47.00.

Dentsply Intl
(
XRAY |
Quote |
Chart |
News |
PowerRating) is
breaking out above the 40 resistance with very strong volume. XRAY has a

TradingMarkets.com RS3 Rating of 91 and an up trending

ADX of 30. If XRAY pulls back, it could try to retest the 40 support
line.

In late-breaking news, Dell Computer
(
DELL |
Quote |
Chart |
News |
PowerRating),
came out with their earnings. Dell beat their revenue estimates with 8.46 bil.
v. 8.28 bil. estimate. EPS were in line at .19 EPS.

These Economic Reports May Hold Clues To Friday’s Direction

BUY THE FEAR, SELL THE GREED

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