Two Constructive Signs
After a strong rally in yesterday’s markets,
minus the volume, today’s markets are trading in and out of positive
territory. By midday, the Dow Jones Industrial Average
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and the Nasdaq Composite
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A positive sign
for the market is that it has been shrugging off violence in the Middle East.
Friday we saw the powerfully rally into the close on the heels of the car
bombing in Pakistan. Today, the market is holding steady in spite of the
reports of a major suicide bombing in Jerusalem. These are constructive signs
that suggest that the market wants to go higher.
Two economic reports that were released were
encouraging. The first came from the Commerce Department. The report showed that
housing starts surged last month, more than economists had expected and the
highest in more than seven years. Also adding to the good news was that the
report said building permits, an indication of future building activity, rose as
well. Most economists had expected a drop in permits according to the Wall
Street Journal.
This news helped some of the homebuilding stocks, such as Centex
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CTX |
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TOL |
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D.H. Horton
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In a separate report, the Labor Department said
consumer prices were unchanged in May after rising 0.5% a month earlier. This
was good news for the economy and the broader indexes.
The semiconductors started off on a good foot,
but by midday, trading in the PHLX Semiconductor sector index
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had slipped back into negative territory.
This morning August gold
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GCQ2 |
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higher at $317.80. In yesterday’s trade, gold dropped in price. Right now
gold is rallying to positive gains and is trying to pull gold mining stocks
along with it. Some of those stocks include:
Anglogold
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AU |
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ABX |
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NEM |
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Placer Dome
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Coventry Health
Care
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CVH |
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20-day moving average and is now rallying from it with strong volume. CVH has a
TradingMarkets.com RS3 rating of 92 and an uptrending
ADX of 19.
Intuit
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INTU |
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high. Yesterday it broke out of a seven-month base with very strong volume.
Intuit has a
TradingMarkets.com RS3 rating of 94
and an uptrending
ADX
of 28.
Linen N’ Things
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LIN |
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breaking out above its peak from a double bottom. LIN has very strong volume on
this break above resistance and is above the 20-day moving average. LIN has an
uptrending
ADX line of 25.
Nasdaq Breadth: 2002-06-18 13:26:55
Adv: 1491/ Dec: 1756 Net: -265
UpVol: 3506746 / DnVol: 4644005 Net: -1137259
NYSE Breadth: 2002-06-18 13:26:55
Adv: 1555 / Dec: 1570 Net: -15
UpVol: 33664913 / DnVol: 35539964 Net: -1875051