CPI Report Comes In Lower Than Expected; Bulls Take Charge

Major indices finish the week with another positive
close.  Crude oil futures close up slightly to  $64.05 after reaching
52-week lows earlier in the session.

Thursday’s
market action created a 10 day intraday high as well as 3
straight higher intraday highs on the the Nasdaq
(explanations below), which are bearish signals. It will be interesting to see if we get more
bearish signals next week and if any trigger on the SPX, which has
surpassed its recent resistance levels near the 1315 area (click
here for more info
).

href=”https://tradingmarkets.com.site/news/Stock%20Alert/”>
Stocks on the
Move

Ford Plans More Job Cuts; Sees
Delay In Achieving Profitability For North American Operations (full
story
).  F shares close sharply lower by over 11.5%.

United Technologies Lifts Share
Repurchase Guidance To $2 Bln. For 2006; Reaffirms EPS Outlook (full
story
).  UTX shares rise by nearly 2.5%.

Marsh & McLennan To Cut 750
Jobs; Expects Cost Cuts To Result In Savings Of $350Mln By 2008 End (full
story
).  MMC shares rise 1.8%.

Microsoft’s Zune – A Challenge
To IPod? (full
story
)  MSFT shares rise by nearly 2%.

Adobe Q3 Earnings Fall; Top
Estimates, Ex-items; Guides Q4 In Line (full
story
).  ADBE shares jump nearly 10%.

DaimlerChrysler Cuts 2006 Profit
Outlook On Weaker-than-expected Results At Chrysler Group; Chrysler Group Now
Sees $1.5 Bln Loss In Q3 (full
story
).  DCX shares fall over 6.5%.


For more stories as they happen, go to our href=”https://tradingmarkets.com.site/news/Breaking%20News/”>Breaking
News
section.



Market Snapshot

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Dow

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+33.30

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11,560.69

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NASDAQ

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+6.86

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2,235.59

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S&P 500

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+3.59
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1,319.87

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size=2>NYSE

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size=2>NASDAQ

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Volume

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3,076,591,000

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2,396,880,000

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Advances

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1909

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1520

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Declines

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1334

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1453

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Up Volume

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1424

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1180

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Down Volume

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1205

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1002

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New Hi’s

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184

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123

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New Lo’s

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30

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39



Strongest/Weakest Sectors

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Strongest
Sectors


Weakest
Sectors

CBOE Internet Index (INX) AirlineIndex (XAL)
Thestreet.com
Internet Index (DOT)
Morgan Stanley
Health Provider Index (RXH)
GSTI Software Index
(GSO)
Airline Index (XAL)

href=”https://tradingmarkets.com.site/news/Economic%20News/”>
Economic
News

Consumer Prices Show Modest Increase In August (full
story
).

New York Manufacturing Sector Sees Improvement In
September (full
story
).

Industrial Production Falls Unexpectedly In August (full
story
).

U. Of Mich.
Consumer Sentiment At 84.4 For Sept.

Helvetica>
Darren Wong

darrenw@tradingmarkets.com


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Use our
most
popular trading tool
to find out how your stocks will move in the next 5
days.


10
Day High Alert
-This is an alert that the market has hit a 10 day new
high intra-day today. Historically this has meant that when the market is above
its 200 day ma, little progress has been seen over the next 2-5 days (on
average) as the market is either overbought or nearing overbought conditions.
It’s a good place to be taking profits. When the market is below its 200 day ma
and the market hits a new 10 day high, it has been, on average, a good place to
be looking to put on short positions.

3
Higher Highs In A Row and 3 Lower Lows In A Row
– The same tactics
applied to 3 consecutive closes in the same direction apply here. 3 higher highs
identifies a market that is overbought, especially when its below its 200 day
ma. 3 consecutive lower lows is an excellent time to be looking for long
positions when the market is above its 200 and to be locking in short positions
when its below its 200 day.