Will Markets Continue To Ignore Surprises?

October 1, 2002
Paul Letourneau

On the first day of the last Quarter of 2002, the
markets have been choppy. One issue that has been a surprise is that JP Morgan issued a
bearish note on stocks this morning, but it’s not getting much reaction. The
firm has a year-end 2003 target for the S&P 500 of 800 (826 currently) on the
belief that the earnings outlook will remain weak.

At the beginning of today’s trade, the futures pointed
towards a positive open, and open positive they did, that is the three major
indices. Then there was a slight pullback when the government released a report
showing that the US manufacturing contracted in September for the first time
in eight months.

The Institute For Supply Management’s factory index dropped to 49.5, reflecting
a slowdown in production and declining employment, from 50.5 in August. The
index had been greater than 50, signaling growth, since February. Construction
spending fell in August for a fourth straight month, the longest string of
declines since April-July 2000, the Commerce Department said.

Education
Management Corp.
(
EDMC |
Quote |
Chart |
News |
PowerRating)
is breaking out from an inverted head-and-shoulders pattern with increasing
volume to hit a 52-week high. EDMC has a

TradingMarkets.com RS3 rating of 93. EDMC is trading at 45.92, up 1.65 .

Caereer Education Corp
(
CECO |
Quote |
Chart |
News |
PowerRating) is
breaking out from an inverted head-and-shoulders pattern with increasing volume
to hit a 52-week high. CECO has a TradingMarkets.com RS3 rating of 92.

Nasdaq Breadth

Adv: 1347 UpVol: 4464771

Dec: 1816 DnVol: 2948522

Net: -469 Net: +1516249

NYSE Breadth

Adv: 1784 UpVol: 53675410

Dec: 1342 DnVol: 33031901

Net: +442 Net: +20643509

Will Markets Continue To Ignore Surprises?

BUY THE FEAR, SELL THE GREED

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