Where Bulls Are Gaining Ground

November 12, 2002
Daniel Beighley

Bulls were in full swing for most of
the session, as price action gapped up off the opening bell and held an uptrend
for most of the day. However, gains couldn’t be held, with sellers taking over in
the final hour, leaving the Dow and S&P only slightly positive. Technology
was best bid on the heels of bullish comments from key companies and various
brokerage firms.
Kevin
Haggerty has been keeping a watch on the market-leading semis as they trade
around key levels. The
(
SMH |
Quote |
Chart |
News |
PowerRating)s were one of the strongest sectors of the day, though
closed down well off the highs.

There were no economic releases
today.

The 10-year U.S.
Note was +010 at 115025.

The Dollar was +0.07 at
104.82.

Volume was below average, at
1,324,625,000 on the NYSE, and
1,543,469,000 on the
Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 1.59, and up
volume over down volume by a 2.08 ratio. Nasdaq advancing issues over declining
issues came in at 1.71, and up volume beat down volume by a 9.35 ratio.

style=”mso-bidi-font-size: 10.0pt”>The href=”https://tradingmarkets.com.site/stocks/indicators/timing/mbias.cfm”>VIX
was -0.72 at 35.39. The href=”https://tradingmarkets.com.site/stocks/indicators/timing/mbias.cfm”>TRIN
was -1.98 at 0.75size=2>.

Leading the Dow despite having its
estimates cut by JP Morgan was Hewlett Packard
(
HPQ |
Quote |
Chart |
News |
PowerRating), +4.37% at
15.50.

Dragging the Dow down were Philip
Morris
(
MO |
Quote |
Chart |
News |
PowerRating), which announced that it cannot confirm its previous growth
estimates for 2003 due to lower volume in the domestic tobacco industry.

Stocks in the news:

Computer hardware maker Dell
Computer
(
DELL |
Quote |
Chart |
News |
PowerRating), +1.23% at 29.47,Â had its earnings estimates raised by
JP Morgan who believes the company will benefit from increased market share and
strength in industry standard servers. Morgan believes the company may guide
above its fourth-quarter consensus.

Software maker Oracle
(
ORCL |
Quote |
Chart |
News |
PowerRating), +4.97% at 9.50, announced that it’s nearing the end of its two-year
declining revenue trend, and expects a turnaround in the first half of 2003.

Mobile phone company Vodafone
Group
(
VOD |
Quote |
Chart |
News |
PowerRating), +14.17% at 17.64, also announced a bullish outlook.Â

Chip stocks were given a boost after
bullish comments from Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating), +4.41% at 8.75, who sees a
pickup in orders in October from September.

Retailer JC Penny
(
JCP |
Quote |
Chart |
News |
PowerRating),
+13.23% at 20.96, announced that its earnings rose nearly fourfold for its fiscal
third quarter, as it beat its estimates.

Tobacco company RJ Reynolds
(
RJR |
Quote |
Chart |
News |
PowerRating), -11.40% at 37.83, fell in sympathy with Philip Morris.Â

Shipping company Federal Express

(
FDX |
Quote |
Chart |
News |
PowerRating), -0.86% at 53.60, was downgraded by Deutsche Bank to “hold”
from “buy” based on valuation.

Financial services company H&R
Block
(
HRB |
Quote |
Chart |
News |
PowerRating), -4.28% at 32.19, was the focus of a negative Wall Street
Journal article which raises questions over how the company will perform if
interest rates rise and stop the refinancing boom.

Communications services company
Research In Motion
(
RIMM |
Quote |
Chart |
News |
PowerRating), -6.53% at 14.60, announced that it willÂ cut
its workforce by 10% in an effort to achieve
profitability.

Where Bulls Are Gaining Ground

BUY THE FEAR, SELL THE GREED

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