Three Strong Sectors Defying The Pullback
The big question after yesterday’s close was,
“Is this the beginning of a new rally?” The answer appears to be not. Well, at
least not until profit-takers take advantage of yesterday’s rally.
At this morning’s bell, the Dow Jones
Industrial Average
(
$INDU |
Quote |
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PowerRating) pulled back immediately, then tried to
stage a rally before pulling back due to profit-taking. The Dow has been able to
stay above the key 10,000 technical support level.
The Nasdaq
(
$COMPQ |
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News |
PowerRating) is in the same
position, with intraday support at 1660, as profit-takers are cashing in on
the big gains of yesterday.
At this point in the session, the June S&P 500
futures
(
SPM2 |
Quote |
Chart |
News |
PowerRating) are pulling up from the lows of the day. In today’s
Dave Floyd’s Trader’s Edge,
Dave has a very informative article on KTNs.
Read the article to learn what KTNs are and how they can help you trading the
futures.
The strongest sectors on the day are:
The Phlx Forest & Paper
Products Sector
(
FPP |
Quote |
Chart |
News |
PowerRating). Some of the stocks that are trading positive this morning are
Rayonier
(
RYN |
Quote |
Chart |
News |
PowerRating),
Potlach Corp
(
PCH |
Quote |
Chart |
News |
PowerRating)
and Louisiana Pacific
Corporation
(
LPX |
Quote |
Chart |
News |
PowerRating). The FPP is trading at 371.02, up 1.07.
The
Amex Defense Index
(
$DFI.X |
Quote |
Chart |
News |
PowerRating) is
one of the stronger sectors on this down day. Some of the stronger stocks in the
index are Engineered Support
(
EASI |
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Chart |
News |
PowerRating), L-3 Communications
(
LLL |
Quote |
Chart |
News |
PowerRating),
Northrop Grumman
(
NOC |
Quote |
Chart |
News |
PowerRating), Alliant Techsystems
(
ATK |
Quote |
Chart |
News |
PowerRating) and Flir
Systems
(
FLIR |
Quote |
Chart |
News |
PowerRating).
The
Morgan Stanley Healthcare Payor
Index
(
$HMO.X |
Quote |
Chart |
News |
PowerRating) is trading positive this morning. Two winners in
the HMO index are Mid Atlantic Medical Services
(
MME |
Quote |
Chart |
News |
PowerRating) and Cigna
Corporation
(
CI |
Quote |
Chart |
News |
PowerRating).
Flowserve
(
FLS |
Quote |
Chart |
News |
PowerRating) is pulling back to
its 20-day moving average. FLS is holding a
3-month relative strength rank of 91 from TradingMarkets.com.
Anglogold
(
AU |
Quote |
Chart |
News |
PowerRating) is forming a pullback
from its recent high. AU is holding a
3-month relative strength rank of 99 with an uptrending
ADX of 46 from TradingMarkets.com.
Alliant Techsystems
(
ATK |
Quote |
Chart |
News |
PowerRating)
is
rallying out of the pullback to the 20-day moving average we alerted Wednesday.
ATK is holding a
3-month relative strength rank of 80 with an uptrending
ADX of 40 from TradingMarkets.com.
Fortune Brands
(
FO |
Quote |
Chart |
News |
PowerRating) is pulling back from its high. FO has support at around 54.00. Fortune
Brands has a
TradingMarkets.com RS3 rating 84 and an uptrending
ADX of
39.
The bias remains negative in the markets at
this point in the session. The NYSE Adv/Dec 1299/1775 and the Nasdaq
Adv/Dec 1211/2050.