Three Stocks Forming Pullbacks
Daniel Beighley is away from the office Friday. Today’s recap was
written by Duke Heberlein
The closing bell
of a Triple Witching Friday saw stocks sitting near the bottom of Friday’s
range. A declining dollar and mounting turmoil in the Middle East continue to
prompt investors to reduce their exposure to US equities.
The September dollar
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$DXU2 |
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continued sharply lower going into next week as the record April trade deficit
added another reason for the decline. The dollar is trading at Y121.9 and at a
two-year low against the euro at $0.97.
The weekly chart for the September dollar
shows that prices are in a steep downtrend. Solid support is at the 108.00 area.
Historically, downtrends tend to last longer in major currencies, meaning there
is a possibility that we could see further decline in the dollar in the coming
weeks.
The Nasdaq Composite
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$COMPX |
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has retested and slightly violated the recent low at 1445. This was the biggest
level of support for Friday’s session. If the Nasdaq can bounce and this is
indeed a mini double bottom, a move back above the area of 1451 to 1460 would be
encouraging.
The S&P 500
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$SPX.X |
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below the key 1000 support level, and the internals were weak throughout the
session.
Taking a look at individual stocks, Northrup
Grumman
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NOC |
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NOC is holding a
3-month relative strength rank of 82 from TradingMarkets.com.
Stericycle
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SRCL |
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from its recent high. SRCL is holding a
3-month relative strength rank of 88 from TradingMarkets.com.
Yellow Corp.
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YELL |
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after a thrust to the upside. YELL is holding a
3-month relative strength rank of 81 from TradingMarkets.com.
The QQQs continue to drift lower and trade
at their worst levels of all time. On a weekly chart, you see a descending
triangle and the Q’s have broken below the support level in the same manner as
the Nasdaq 100 index
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$NDX.X |
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Ambac Financial Group
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ABK |
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breaking out of an ascending triangle with increasing volume. ABK has a
TradingMarkets.com RS3 rating of 92 and an uptrending ADX of 25.
The markets are in a near-term oversold
condition, and buyers were no where to be found on Friday, heading into next
week.
Both the CBOE Volatility Index
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$VIX.X |
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and the Nasdaq Volatility Index
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$VXN.X |
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eight-month highs.
Click Here
for the TradingMarkets.com Market Bias Indicators.
NASDAQ Breadth: 2002-06-21 at
the close:
Adv: 1653 / Dec: 1745 Net: -92
UpVol: 3325880 / DnVol: 13279658 Net: -9953778
Most active issues:
WorldCom
(
WCOM |
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(
CSCO |
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2.41%, Sun Microsystems
(
SUNW |
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PowerRating), down 3.33%, Oracle
(
ORCL |
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down 4% and Intel
(
INTC |
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PowerRating), down 2.65%.
NYSE Breadth: 2002-06-21 at the close:
Adv: 1380 / Dec: 1815 Net: -435
UpVol: 47481180 / DnVol: 130314454 Net: -82833274
Most active issues:
General Electric
(
GE |
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Lucent Technologies
(
LU |
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PowerRating), down 3.31%, Nortel
(
NT |
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El Paso Corp.
(
EP |
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TYC |
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