What Is Bringing More Money Into This Market…
There is a nice rally on the broader markets,
as follow through is taking place from last Friday’s positive close. The
tone is very positive with volume coming in heavy, though not as strong as last
week’s levels. Analysts expect investors in the coming weeks to do more buying,
lured by lower stock prices after more than two months of heavy selling have
brought issues to values not seen since 1997.
More money appears to be entering this market
today, value investors are putting some of the money that has been sitting on
the side lines in to the market. And short-sellers are covering themselves.
The Dow Jones Industrial Average
(
$INDU |
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PowerRating) has been as high as 8,599,
up over 300 points. Volume on the NYSE has over 904 million total shares traded
at this point in the game.
The Nasdaq Composite
(
$COMPQ |
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PowerRating) was
as high as 1321 before the midpoint of trading. Initial resistance was at 1305
and secondary is at 1318/1327. Intraday support is at 1295 and secondary support
is at 1289. Volume has surpassed the 1.0 billion share mark, at this rate on its
way to 2.0 billion to 2.1 billion shares.
The S&P 500
(
$SPX.X |
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PowerRating) is trading at
its best levels of the day testing the 883/885 resistance levels on the
intraday chart. This is above the +2.0 Volatility Band (885). A break higher
will have resistance at around 897 to 900. Support on the intraday is at
878/880.
The
Phlx Gold
& Silver Index
(
$XAU.X |
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PowerRating) is trading higher and some of the stocks
in the index are trading positive, such as: Barrick Gold
(
ABX |
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PowerRating), Newmont
Mining
(
NEM |
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PowerRating) and Placer Dome
(
PDG |
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PowerRating). Other strong sectors on
the day are : Airlines
(
$XAL.X |
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PowerRating), Wireless Seivices,
Utilities, Oil Services
(
$OSX.X |
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PowerRating), Pharmaceutical
(
$DRG.X |
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PowerRating),
Banks
(
$BKX.X |
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PowerRating), Biotech
(
$BTK.X |
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PowerRating) and Semiconductors
(
$SOX.X |
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PowerRating).
Expedia.com
(
EXPE |
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PowerRating) is moving in a
counter trend rally. EXPE is holding a
3-month relative strength rank of 8 with a downtrending ADX of 51 from
TradingMarkets.com.
J2 Global Communications
(
JCOM |
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PowerRating) is
breaking out of an ascending triangle with increasing volume. JCOM has a
TradingMarkets.com RS3 of 99. JCOM is trading at 20.89 up 2.63. This
stock has run up quickly, so the best possible way to trade this would be a
pullback from the high.
SangStat Medical
(
SANG |
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PowerRating) is breaking out of a 1,2,3 lower bottom. SANG is trading at its
70.7% Retracement line. SANG has a
TradingMarkets.com RS3 rating of 97 and strong volume.
Saint Paul Companies
(
SPC |
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News |
PowerRating) is rallying from a short-term bottom after appearing on the
TradingMarkets.com 3-Day Wake Up Call list.
Market Internals are positive.
Nasdaq Breadth:
Adv: 2369 UpVol: 8958933
Dec: 946 DnVol: 834448
Net: +1423 Net: +8124485
NYSE Breadth:
Adv: 2605 UpVol: 91942857
Dec: 627 DnVol: 10370690
Net: +1978 Net: +81572167