Two Reasons Stocks Are Going Up
After three very tough days to the downside
due mainly to bad economic news and skepticism towards corporate earnings,
traders took advantage of oversold stocks and dove in with both feet this
morning.
In midday trading, the Dow Jones Industrial
Average
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$INDU |
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the big winners of late and much of the winnings have been coming from the
Nasdaq Composite index
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$COMPQ |
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the spring of 1997 yesterday. Today the Nasdaq is rising into the positive by
moving up 5% in the first half of trade.
The Standard & Poor’s 500-stock index
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$SPX.X |
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past its 2.0 Volatility Band (866).
Why are stocks going up? Two reasons stocks are moving higher are from the
rising dollar
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DXU2 |
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is because investors are expecting that the U.S. is in a better position
to handle the uncertain global economic situation than Europe or Japan,
and that the Federal Reserve may be gearing up for an interest-rate cut. The
FOMC meeting will be on August 13th.
Some of the stronger sectors on the day are:
Broadcast, Utilities
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$UTIL.X |
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Employment Services, Homebuilding, Finance, Airline
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$XAL.X |
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Oil
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$XOI.X |
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PowerRating), Chip Equipment, Semiconductors
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$SOX.X |
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Software
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$GSO.X |
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PowerRating), Bank
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$BKX.X |
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PowerRating), Brokerage
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$XBD.X |
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Drug
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$DRG.X |
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$BTK.X |
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$RLX.X |
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Emcor
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EME |
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is rallying from a pullback from the high with increasing volume. EME opened at
its 50% retracement line and is rallying from that point.
Mcgraw Hill
(
MHP |
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a first pullback/Bow Tie after moving off its recent low. MHP is holding a
3-month
relative strength rank of 85 from TradingMarkets.com.
St. Paul Companies (SPC)
is meeting resistance at the 20-day moving average. SPC is carrying a
3-month
relative strength rank of 7 with a downtrending ADX of 62 from
TradingMarkets.com.
CV Therapeutics
(
CVTX |
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is rallying from a pull back from the
highs. CVTX has a
TradingMarkets.com RS3 rating of 98. Support is at the 20-day moving
average at around 20.66..
Guidant
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GDT |
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is rallying from a pull back from the highs. GDT has a
TradingMarkets.com RS3 rating of 95 and an up trending
ADX of 34. Support is at the 50-day moving average (32.77).
NASDQ Breadth:
Adv: 2236 UpVol: 70764101
Dec: 988 DnVol: 6948798
Net: +1248 Net: +63815303
NYSE Breadth:
Adv: 2380 UpVol: 78266791
Dec: 769 DnVol: 10848770
Net: +1611 Net: +67418021