This Battered Sector Is Flying Higher
At just past the midway-point, the three
major indices are chopping away. At the beginning of morning trade, the futures
pointed to a lower open and the markets did gap lower. Then the indices attempted
a rally, but were turned away. The battered
Airline Sector
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$XAL.X |
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which has been a strong underperformer over the past several months, has nearly
tripled the performance of the S&P 500
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$SPX.X |
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rally off the lows. The XAL has gained almost 45%, compared to the 17% the
SPX has regained over the same period. Some of the issues on the move in
Tuesday’s session which could prove interesting to traders include: Southwest
Airlines
(
LUV |
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(
JBLU |
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(
DAL |
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The S&P 500 Index
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$SPX.X |
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above the 62% retracement (891) drawn from the August high to the October low
on the daily. Support is at 888 with secondary support at 886. Initial
resistance is at 896 with secondary at 900.
On the Nasdaq Composite
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$COMPQ |
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overhead resistance it at 1305, where it was earlier in the day. Support is at
1290. The Semiconductors are weighing on the Nasdaq’s progress today.
Phlx Semiconductor Index
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$SOX.X |
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crossed the 50-day moving average, but has now fallen below that level. The
stocks that have contributed to the declines are: Texas Instruments
(
TXN |
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which is the leading reason for the decline after reporting weaker earnings.
Kla-Tencor
(
KLAC |
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PowerRating), Maxim Integrated Products
(
MXIM |
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Linear Technology
(
LLTC |
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(
NVLS |
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PowerRating).
Among the other weaker sectors are: software
(
$GSO.X |
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(
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far are: networking and airlines.
Ross Stores
(
ROST |
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rallying to a new 52-wk high (ROST). ROST is taking
out its previous one-year high of $44.00 established June 17. ROST has a
TradingMarkets.com RS3 rating of 88.
Coach
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COH |
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resistance with increasing volume to make a 52-week high. COH has a
TradingMarkets.com RS3 rating of 94.
Penn National
Gaming
(
PENN |
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PowerRating) is breaking out to hit a 52-week high with increasing
volume.