To Close Positive, The Market Must…
A very narrow and lackluster trading day
is in affect. Many traders are sitting on the
sidelines ahead of tomorrow’s FOMC meeting and tech bellwether Cisco Systems’
(
CSCO |
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PowerRating) earnings announcement.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating)
has been progressively weakening throughout the first half of trade. On the
intraday chart, the Dow has formed a descending triangle, which is indicating
possible further weakness.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating)
is taking on the opposite intraday pattern as the Dow. Right now it is hanging on
to very modest gains, remaining slightly positive, and is trading in an ascending
triangle. If the Nasdaq can break out above the intraday resistance level, it could end the session positive.
The Philadelphia Semiconductor Sector
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)
is helping buoy the Comp. Some of the stronger stocks helping push the SOX
are Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating), Kla-Tencor
(
KLAC |
Quote |
Chart |
News |
PowerRating) and
Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating).
Other sectors that are positive on the day are
the
Phlx Forest & Paper Products Index
(
$FPP.X |
Quote |
Chart |
News |
PowerRating), Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating)
and the Morgan Stanley Healthcare Management
(
$HMO.X |
Quote |
Chart |
News |
PowerRating).
Oil Service stocks are very weak today as
a reaction to the news out of Iraq. Many of these stocks are basing near the
lows or have started to bounce on what so far appears to be weak volume. You
may want to watch these for some further intraday downside potential later in
the day. Some of the stocks in this sector include
(
BHI |
Quote |
Chart |
News |
PowerRating),
(
BJS |
Quote |
Chart |
News |
PowerRating),
(
DO |
Quote |
Chart |
News |
PowerRating),
(
NBR |
Quote |
Chart |
News |
PowerRating),
(
NE |
Quote |
Chart |
News |
PowerRating),
(
RIG |
Quote |
Chart |
News |
PowerRating),
(
GSF |
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Chart |
News |
PowerRating),
(
SLB |
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Chart |
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PowerRating)
and the HOLDRs
(
OIH |
Quote |
Chart |
News |
PowerRating).
Royal Caribbean
(
RCL |
Quote |
Chart |
News |
PowerRating) is trading in a
running cup-and-handle atop the 20-day moving average. RCL carries a
3-month relative strength rank of 85 from TradingMarkets.com.
Pactiv Corp.
(
PTV |
Quote |
Chart |
News |
PowerRating)
is breaking out of an uptrending channel with increasing volume to make
all-time highs.
Pinnacle
Entertainment
(
PNK |
Quote |
Chart |
News |
PowerRating) is breaking out of an ascending triangle with
increasing volume. PNK has a
TradingMarkets.com RS3 rating of 99
and an uptrending
ADX
of 53.
Teva
Pharmaceutical
(
TEVA |
Quote |
Chart |
News |
PowerRating) is breaking out from an inverted head–and–shoulders pattern. Resistance is at 58.00, and
TEVA may pull back to
retest this
level before moving higher.