Why This Week Will Be Important For Traders

August 26, 2002
Daniel Beighley

Today
the major indexes staged opening reversals to the downside,
consolidated mid-day, and rallied higher into the final two hours where a
pullback proved to be a handle for another push higher into the close. The
biggest gainers on the day were in gold and silver, networking, oil service, and
utilities, while the biggest losers were in Internet, biotechnology, and
computer technology.

This week should prove to be an
important one as several key economic reports are scheduled to be released. The
markets showed bullish behavior with a positive finish to good news from the
housing sector. Tomorrow durable orders and consumer confidence
reports will have opportunities to test sentiment.

New home sales came in
better than expected with 1,017,000 new sales vs. an expected 975,000. Also,
existing home sales came in better than expected with 5.33 million new sales
vs. an expected 5.30 million.

U.S. Treasury Bonds
finished up ’06 at 110 ’04.

Volume was on the light side at 962,174,000 on the NYSE, and 1,424,649,000
on the Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 2.39, and up
volume over down volume by a 2.72 ratio. Nasdaq advancing issues over declining
issues came in at 1.70, and up volume beat down volume by a 1.26 ratio.
The

VIX was down 0.52 at 32.29. The

TRIN was down 2.04 at 0.87.

Candy maker Hershey
(
HSY |
Quote |
Chart |
News |
PowerRating), up 2.35% at 76.80,Â
was reported by USA Today as being bid for by European company Nestle for
$82 a share.

Construction services company Ryland Homes
(
RYL |
Quote |
Chart |
News |
PowerRating),
up 3.78% at 45.75, got a boost from better-than-expected data from the housing
sector.Â

Pharmaceutical company IDEC Pharmaceuticals
(
IDPH |
Quote |
Chart |
News |
PowerRating),
down 2.75% at 42.08, came under pressure from a negative Wall Street Journal
article on generic drugs, cautious comments from Wachovia, and a rumor that
the company might reduce its outlook on its drug Zevalin.

Biotechnology company Alkermes
(
ALKS |
Quote |
Chart |
News |
PowerRating), down
6.15% at 9.45, announced that it will lay off 23 percent of its workforce due to
a delay of its drug Risperdal Consta.

Healthcare facilities company
Â Accredo Health (ACDO),
down 3.85% at 50.91, has beat its fourth-quarter earnings by 3 cents with
profits of 32 cents per share.

Defense contractor TRW Inc.
(TRW),
up 1.47% at 56.50, has won a contract worth $4.5 billion dollars to build
weather satellites for the U.S. Government.

Shipping companyÂ UPS (UPS),
down 0.87% at 64.71, was downgraded by Morgan Stanley to “equal-weight/in-line”
from “overweight/in-line”.

Communications equipment maker Ciena Corp. (CIEN),
up 5.52% at 4.39, was upgraded by SoundView TechnologyÂ to “outperform” from
“neutral”.

Insurance company Fidelity National (FNF),
up 0.93% at 31.21,Â was downgraded by U.S. Bancorp to “outperform” from “strong
buy”.

Railroad company Burlington Northern (BNI),
up 0.89% at 29.39, was downgraded by Morgan Stanley to “underweight/in-line”
from “equal-weight/inline”.

Why This Week Will Be Important For Traders

BUY THE FEAR, SELL THE GREED

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