Intermediate-Term Traders Report
A wide range up bar, without doubt, shows a sign
of strength. Because of its outstanding appearance, it attracts new buyers.
Needless to say, the media loves to cover the big movers, therefore adding more fuel
to the stocks.
Let’s see one example. On Tuesday, Yahoo! (YHOO) formed a wide range bar on
heavy volume and closed near the day’s high. It looked so promising. Many market
participants believed a continuation of the upward move. But, Yahoo! betrayed
anxious investors and traders. The very next day, the stock shaped an inside
bar. Indeed, it was a disappointing day.
Let’s review the market. S & P 500 Index ($SPX.X) closed at the top of a
declining channel. Is it the top? Semiconductor Index ($SOX.X) failed to
break above 400 and formed a bearish tail.
Notable stocks of the week:
Travelzoo Inc (TZOO): When is this going to stop? Who’s still buying it?
It closed above 70 for the first time and finished the week strongly. Do you
want to buy it?
Coca Cola (KO): Has the stock bottomed out, or still needs to test the
prior lows? KO is, needless to say, extremely oversold. Look for a short
covering rally.
Economic calendar:
| Date | Time (ET) | Release | For | Consensus |
| Sep 21 | 08:30 | Housing Starts | Aug | 1940K |
| Sep 21 | 08:30 | Building Permits | Aug | 1985K |
| Sep 21 | 14:15 | FOMC Meeting | ||
| Sep 23 | 08:30 | Initial Claims | 9/18/04 | n/a |
| Sep 23 | 10:00 | Leading Indicators | Aug | -0.2% |
| Sep 24 | 08:30 | Durable Orders | Aug | +0.5% |
| Sep 24 | 10:00 | Existing Home Sales | Aug | 6.61M |
Best performing industries of the week:
Oil Drilling, Equipment & Services +4.49%, Tires +4.45%, Water Utilities +4.22%
Worst performing industries of the week:
Semiconductors -7.15%, Airlines -2.45%, Communications Technology -2.23%
Good night and have a nice weekend.