Where The Investors Are Going
It is not a pretty picture for the bulls.
The Nasdaq
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$COMPQ |
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the 1640 level which had been a short-term floor, then declining to its lowest level since Oct. 10.
The two culprits that continue to weigh on the Nasdaq are the
semiconductors and biotech. The Semi Index
(
$SOX.X |
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PowerRating) at 481.82, -22.23,
has fallen below 500 for the first time since January. The Biotech Index
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$BTK.X |
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at 407.81, -7.99, set a new 52-week low today. The Nasdaq has initial support at 1600
and secondary support at 1550.
The Dow Jones Industrial Average
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$INDU |
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is down over 100 points. It has broken below 9950.00. The only two sectors that
are positive, but fading quickly, are Gold
(
$XAU.X |
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PowerRating) and
Oil
(
$XOI.X |
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PowerRating). To read more about gold’s move, trend, and where it
could go,
Click Here to read Mark Boucher’s opinion.
The number one reason for the selling is due in
large part to the poor economic reports. Non-farm Payrolls rose just 43K in April
below the consensus of a +60K. The unemployment rate hit 6%, which also
disappointed relative to the 5.8% consensus. ISM Services data for April was
reported at 55.3. While a reading above 50 still suggests growth, it was below
the consensus of 57. The price index rose to 59.3 vs. 53 in March. The weakness
in the market is broad-based, as investors are rotating into cash.
Greenpoint Financial
(
GPT |
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high and looks like it is trying to move out of a high-level base. Above-average volume coming into the stock yesterday could signal that buyers are
ready to move this stock higher. In the regional banks, you may also want to take
a look at
(
CF |
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(
GSB |
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PowerRating). Both are nearing two-month highs. Another
one to watch is Washington Mutual
(
WM |
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PowerRating). WM has broken above congestion
and could be buyable on any pullbacks in the next week.
Netbank
(
NTBK |
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is breaking out of a sideways channel on strong volume to hit a 52-week high.
NTBK has a
TradingMarkets.com RS3 rating of 80.
Express Scripts
(
ESRX |
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average volume. ESRX may offer some intraday bounce opportunities for
nimble traders. You may want to also watch
(
CMX |
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Express Scripts down on Thursday. CMX appears a little stronger today and
is forming a higher low on the 5-minute, while ESRX is forming a lower low.
99 Cents
Only Stores
(
NDN |
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PowerRating) is breaking out of an ascending triangle on
strong
volume to hit all-time highs. NDN has a
TradingMarkets.com RS3 rating of 83 and an uptrending
ADX of 23.
Barrick Gold
(
ABX |
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PowerRating) is hitting a 52-week high today. ABX has a
TradingMarkets.com RS3 rating of 88 and an uptrending
ADX of 34. The current rally has been fueled by the recent uptrend in
gold. June gold is at two-year highs. Initial resistance for Barrick Gold is at
22.00 and secondary resistance is at 24.00.
The Dow has support at 9950, with the secondary
support is at 9925.