What The Market Needs For A Comeback…
A blitz of dreary earnings news, including flat
revenue for Dow component General Electric
(
GE |
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PowerRating) and a sixth straight
quarterly loss for Yahoo!
(
YHOO |
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PowerRating) dealt the markets a bad hand today.
The Dow 30 component AT&T
(
T |
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PowerRating) was the biggest loser among the Dow
industrial stocks, and reports of a Securities and Exchange Commission
investigation of International Business Machines
(
IBM |
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PowerRating) sent its stock
to a 52-week low.
The
Dow
(
$INDU |
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PowerRating) immediately began its decline at the opening and by
midday was getting close to its 10,200 support level and giving back much of
yesterday’s gains. The Dow will have to shake off today’s news to make a comeback. On the intraday chart, support is at 10,200. Resistance is at 10,260 and
secondary resistance is at 10,300. A close above 10,300 would be a positive for
this market, showing that the bleak news of this morning is a non-event.
The Nasdaq Composite Index
(
COMPX |
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News |
PowerRating)
has pulled back as low as 1732.64. We have not seen these lows since late
February of this year. This area looks like strong support. As far as making a
comeback today, the Nasdaq has a little ways to rally to go positive. On the
intraday chart, the initial overhead resistance is at 1748 and secondary
resistance is at 1760.
June gold
(
GCM2 |
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News |
PowerRating) is trading positive
today. The past couple of sessions gold had
dipped below its $300.00-an-ounce support level. Yesterday gold opened lower at
the beginning of trade. Gold looked pretty anemic for most of the session. Then
at about 12:15 PM EST, June gold broke above the 300.00 level and rallied to
close near its highs at $302.50 an ounce, a $3.00, or 1.00% gain. With the current tensions in the Middle East and Japan’s
recent economic slowdown, many investors have flocked to gold. June Gold affects
the movement of the PHLX Gold & Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating). The XAU is
one of the few bright spots on the session. Some of the gold mining stocks
performing well are: Anglogold
(
AU |
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Chart |
News |
PowerRating), Barrick Gold
(
ABX |
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News |
PowerRating).
Newmont Mining
(
NEM |
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PowerRating) and Placer Dome
(
PDG |
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PowerRating), all of which are
positive.
Rent-A-Center (RCII)
is breaking
out of a consolidation pattern with stronger volume. RCII has a
TradingMarkets.com RS3 rating of 96 and an uptrending
ADX of 41.
P.F. Chang’s China Bistro
(
PFCB |
Quote |
Chart |
News |
PowerRating) is close
to making a 52-week high. Volume has been steady. PFCB has a
TradingMarkets.com
RS3 rating of 93
and an uptrending
ADX of 41.
ShuffleMaster (SHFL)
is attempting to take out its resistance at 22.00. SHFL has a
TradingMarkets.com
RS3 rating of 95
has an up trending
ADX number of 19.
Affymetrix
(
AFFX |
Quote |
Chart |
News |
PowerRating) is trading in a
triangle. AFFX is carrying a
3-month relative strength rank of 3 from TradingMarkets.com.
Polymedica
(
PLMD |
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Chart |
News |
PowerRating) is pulling back after
its thrust to the upside on range expansion. PLMD is holding a
3-month relative strength rank of 99 from TradingMarkets.com.
In these times of uncertain markets, it is always
good to review your rules about trading. It is not an option. It is a matter of
survival to be a disciplined trader.
Dave Floyd has written a nice little piece on this. You see, even
seasoned traders like Dave make mistakes.
Good luck in the Second Half of Trading!