Think Again
One would think that better earnings pictures and
stronger confidence would boost this market higher, but think again. Consumer
confidence in the U.S. economy rose this month to a five-month high. According
to the Conference Board, there is optimism the recovery will be under way by mid-year.
The business research group’s index of consumer sentiment increased to 97.3 in
January after jumping to 94.6 in December. It hasn’t been as high since it was
114 in August 2001. With this news, the markets opened up stronger, did a quick
head fake and then dropped below their intraday support levels.
The March S&P 500 futures
(
SPH2 |
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Chart |
News |
PowerRating)
are below their S2 Pivot point (1120.77). The March Dow
(
DJH2 |
Quote |
Chart |
News |
PowerRating) fell
below its S2 Pivot point (9742) and the March Nasdaq 100
(
NDH2 |
Quote |
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News |
PowerRating) has
dropped below its S1 Pivot point (1550.67).
Oil shares are falling this morning on the heels
of bad news from oil giant Chevron Texaco
(
CVX |
Quote |
Chart |
News |
PowerRating). The company posted a
net loss of 2.5 billion, or 2.36 a share, for the fourth quarter. CVX has
dropped below its support line and has lost 3.20 to trade at 85.67. Unocal
(
UCL |
Quote |
Chart |
News |
PowerRating)
also lowered earnings expectations and daily production forecasts for 2002,
citing continued weakness in commodity prices, and natural gas prices in
particular.
The independent oil and gas company expects
earnings for the year to be $1.10 to $1.20 per share, below the average EPS
forecast of $1.54. Unocal had been trading above its very important 50%
retracement line at 34.39, but has now dropped well below those levels and is eyeing
its support level around 32.50. The CBOE Oil Index
(
$OIX.X |
Quote |
Chart |
News |
PowerRating) is
suffering because of the negative news. The Oil sector has fallen below its
38.2% retracement line and is down 6.94 to 288.19.
Stocks To Note At This Period In The Trading Session
Expedia
(
EXPE |
Quote |
Chart |
News |
PowerRating) has broken out of a
cup-and-handle pattern on the weekly chart. Volume is very strong today. The
3-month relative strength rank is 97,and
EXPE has an uptrending ADX of 43.
Ticketmaster
(
TMCS |
Quote |
Chart |
News |
PowerRating) has broken above
its resistance level and is making a 52-week high with stronger volume. The 3-month
relative strength rank is 98. TMCS has an uptrending ADX of 30.
Argosy Gaming
(
AGY |
Quote |
Chart |
News |
PowerRating) has rallied back
after falling below its 50-day MA yesterday. It is currently trading above its
20-day MA. The
3-month relative strength rank is 54.
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