Where To Next?
With no major economic reports delivered today,
the markets got an early boost from some positive comments by analysts regarding
Sun Micro
(
SUNW |
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PowerRating) and several brokerages. However, in the last two
hours, the markets have given back those gains. Contributing to the sell
pressure is a negative report on Qualcomm
(
QCOM |
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PowerRating). The CFRA (Center
for Financial Research & Analysis) claims that Qualcomm’s 10K shows the
company recorded revenue in exchange for non-cash consideration. News like this
scares many traders because of the Enron debacle.
The Nasdaq
(
$COMPQ |
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PowerRating) is currently
trading at 1772.42. It has initial support at 1771 and secondary support at
around 1664. Overhead resistance is at 1814.
The Dow is down 36.75 to 9588.69, having given up
its gains off the open. It is trading between its support (9488) and its
resistance (9670).
April Gold
(
GCJ2 |
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PowerRating) is trading above
$300 and continues to stay strong. Two gold stocks are hitting 52-week highs
today, Barrick Gold
(
ABX |
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PowerRating) and Anglogold
(
AU |
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News |
PowerRating).
The Philadelphia Semiconductor Index
(
$SOX.X |
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PowerRating)
is currently trading lower at 514.88 after being higher in the morning trade.
The SOX has overhead resistance at 531 and support at 508.
The Amex Biotech Index
(
$BTK.X |
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PowerRating) is
rallying from its support level today. The BTK is higher thus far. Stocks that
are helping the BTK move higher are Amgen
(
AMGN |
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PowerRating), Biogen
(
BGEN |
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PowerRating),
Cephelon
(
CEPH |
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PowerRating), Genzyme
(
GENZ |
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PowerRating) and Genetech [DNA|DNA].
American Axle & Manufacturing Holdings
(
AXL |
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PowerRating) is rallying out of a pullback. AXL has a 3-month relative strength
rank of 96 and an uptrending ADX of 44. American Axle is trading up .56 to
24.89.
Tyco International
(
TYC |
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PowerRating) is staging a
potential false rally from the recent low. The stock is up Friday on news of
the proposed sale of its capital unit to either GE or possibly GMAC. TYC is up
1.94 to 29.99 and is carrying a 3-month
relative strength rank of 1 with a downtrending ADX of 45 from
TradingMarkets.com.
Action Performance Companies
(
ACTN |
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PowerRating) is
bouncing higher out of a pullback to the 50-day moving average. ACTN is up
1.22 to 36.33 and holds a 3-month
relative strength rank of 98 from TradingMarkets.com.
Barrick Gold
(
ABX |
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Chart |
News |
PowerRating) is gapping higher and
hitting a new 52-week high. The stock is making an assault on the $20 level,
up 0.60 at 19.37, and is carrying a 3-month
relative strength rank of 83 from TradingMarkets.com.
The Nasdaq Composite
(
$COMPQ |
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PowerRating) and the
Nasdaq 100
(
$NDX.X |
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PowerRating) are breaking down below intraday triple bottoms. In
addition to this action, the java applet is beginning to show a number of tech
stocks hitting new lows. Among the issues showing up are Qualcomm
(
QCOM |
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PowerRating)
hitting a new 52-week low and Infosys Technologies
(
INFS |
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PowerRating), Wind River
Systems
(
WIND |
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PowerRating) and Optimal Robotics
(
OPMR |
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Chart |
News |
PowerRating) logging new two-month lows.