These Sectors Are Golden…
The markets are becoming more positive at this
hour. For the majority of the first part of the session, the market continued to
waver and test its support levels. Trading has now stabilized over the last hour
or so with the market averages slightly above the worst levels of the day.
Part of the reason for today’s poor start was the
fact that with no major economic reports out this morning, the market was unable
to build momentum on the early strength related to the unusual comments from
Cisco Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating). The company prematurely released some
information about its EPS, which is scheduled to be announced after the close.
On the positive side are the energy and gold
sectors. In addition, health care and selected names in the networking and
storage sectors, such as Emulex
(
EMLX |
Quote |
Chart |
News |
PowerRating) and Network Appliance
(
NTAP |
Quote |
Chart |
News |
PowerRating), are doing well so far.
The Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating) dropped to its
support level around 1800 and has now pulled up higher, but is still in the red.
The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating) has dropped to just above its support level
of 1080. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) has pulled up off of its lows and is
trading higher. The support level for the Dow is at 9660.
Stocks of note in this trading session
Sears
(
S |
Quote |
Chart |
News |
PowerRating) is trading in an ascending
triangle. S has a TradingMarkets.com
3-month RS ranking of 83. It is down .28 at 52.23.
Gtech Holdings
(
GTK |
Quote |
Chart |
News |
PowerRating) is pulling back after
its latest thrust to the upside. GTK is currently down 0.38 to 50.07 and
carries a 3-month
relative strength rank of 88 from TradingMarkets.com.
Level 3 Communications
(
LLL |
Quote |
Chart |
News |
PowerRating) looks ready
to move back to the upside out of its pullback from high. LLL is currently
down 2.31 to 102.82 and is holding a 3-month
relative strength rank of 84 along with an uptrending ADX of 37 from
TradingMarkets.com.
Wendy’s
(
WEN |
Quote |
Chart |
News |
PowerRating) is breaking out of an
ascending triangle with increasing volume. The stock is hitting a 52-week high
and has a TradingMarkets.com
3-month relative strength rank of 76. The uptrending ADX reading is 37.
Wendy’s is up 23 cents to 31.93 and does not seem to be overly extended at these
current levels.
Emulex
(
EMLX |
Quote |
Chart |
News |
PowerRating) is trading in a running cup-and-handle
atop the 20-day moving average. EMLX is up 0.29 to 42.65 and is holding a 3-month
relative strength rank of 97 from TradingMarkets.com.
Coach
(
COH |
Quote |
Chart |
News |
PowerRating) is pulling back to the 20-day
moving average. The stock is currently trading down 0.80 to 43.00 and is
carrying a 3-month
relative strength rank of 94 with an uptrending ADX of 44 from
TradingMarkets.com.
Cymer
(
CYMI |
Quote |
Chart |
News |
PowerRating) is breaking out of an
ascending triangle to a 52-week high with increasing volume. CYMI has a TradingMarkets.com
3-month relative strength rating of 95 and an uptrending ADX line of 39.
CYMI is up 3.25 to 39.00.
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