Today’s Target
The Witch Hunt continues for companies with
accounting irregularities. Today’s suspect is Computer Associates
(
CA |
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PowerRating).
Computer Associates is the target of a federal criminal investigation regarding
accounting concerns. The S&P 500 is down 5.9% this year on concern some
corporations may be misleading investors about their balance sheets, and on
speculation corporate earnings won’t rebound as much as expected this year. The
S&P 500 Index
(
$SPX.X |
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PowerRating) is trending down for a fourth day and
is below its 1080 support level.
Gains in Oracle
(
ORCL |
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PowerRating) helped limit some losses in the Nasdaq after
Banc of America Securities said the third-largest software company will benefit
from any economic recovery and advised clients to buy shares. Microsoft
(
MSFT |
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PowerRating)
is higher as well today. Nasdaq
(
$COMPQ |
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PowerRating) has dropped to levels we
saw back in October of 2001. Initial support is at 1700 with secondary support
at 1655.
The semiconductor sector
(
$SOX |
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PowerRating) encountered a bearish reversal and
has weighed on the tech sector, along with the software sector, which is
weakening as well
(
$GSO.X |
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PowerRating). Volume is on pace to exceed
yesterday’s total, but remains modest overall.
The AMEX Pharmaceutical Index
(
$DRG.X |
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PowerRating)
is higher today, trading above its 20-day EMA. King Pharmaceuticals
(
KG |
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PowerRating)
is helping lift the DRG. KG looks to be forming a double bottom on a daily
chart. Today, King is bouncing off of its support. Johnson & Johnson
(
JNJ |
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PowerRating),
Amgen
(
AMGN |
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PowerRating), Eli Lily
(
LLY |
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PowerRating) and American Home Products
(
AHP |
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PowerRating)
are also helping the DRG move higher today.
The oil service sector
(
$OSX.X |
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PowerRating) is
trading lower today, mostly on speculation that Russia will not live up to its
agreement to cut exports. Also, there is news that OPEC is continuing to pump
higher quota levels.
The Forest Paper & Products sector index
(
$FPP.X |
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PowerRating)
is pulling back from its high. Today the index is trading just above its 20-day
EMA.
The Morgan Stanley Consumer Index
(
$CMR.X |
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PowerRating)
is pulling back from its high. A couple of stocks in this index that are
positive on the day are Walgreen
(
WAG |
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PowerRating), General Mills
(
GIS |
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PowerRating)
and Merck Pharmaceuticals
(
MRK |
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PowerRating).
April gold
(
GCJ2 |
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PowerRating) is trading lower
again today. It’s trading just above its S1 pivot Point (291.37).
ATT Canada
(
ATTC |
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PowerRating) is moving off its low
after a probe to the downside. ATTC carries a 3-month
relative strength rank of 5 along with a downtrending ADX of 48 from
TradingMarkets.com.
Accredo Health
(
ACDO |
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PowerRating) is
rallying from a pullback from the high. ACDO has a TradingMarkets.com
RS3 rating of 93 and an uptrending ADX of 28.
Oxford Health Plans
(
OHP |
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PowerRating) is rallying
from a pullback from the high. OHP has a TradingMarkets.com
RS3 rating of 95 and an uptrending ADX of 42.
Cymer
(
CYMI |
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News |
PowerRating) is pulling back from its
high and is testing its 20-day EMA. Cymer has a TradingMarkets.com
RS3 rating of 97 and an uptrending ADX of 34.