Intermediate-Term Traders Report

  • September 10, 2004
  • Tsutae Kamada

On Thursday, Bear Stearns downgraded Apple
Computer (AAPL) to Peer Perform form Outperform based on valuation as the stock
reached the target price of $36.50. In spite of this potentially disastrous
news, Apple held up well. As soon as the stock came close to the prior high, buyers
stepped in and gradually pushed the price higher. AAPL finished the day at
35.70, down 1.78%.

Let’s see one more example. Also on Thursday, Bear Stearns lowered the rating of
International Speedway (ISCA) to Peer Perform from Outperform. As you can see,
the stock has found its support at the 50-day moving average. We need to
remember stocks always seek the next support level regardless of the
situation.

Now let’s review the market. S & P Depositary Receipts (SPY) closed right
at the top of a declining channel on light volume. On the other hand, Nasdaq
Composite Index, helped by strong semiconductor stocks, took out a
resistance line decisively. 

Notable stocks of the week:

Nucor Corp (NUE): The issue broke out of a trading range and closed at a
new high. Heavy volume suggests the continuation of this upward move.

Maxim Integrated Products (MXIM): The stock has formed a bullish tail. It
often signals the beginning of a recovery rally.

Rent-A-Center (RCII): The stock broke down below its support line on
extremely heavy volume. It may pull back, but look for a continuation of the
downward move.

Economic Calendar:

Date Time (ET) Release For Consensus
Sep 14 08:30 Retail Sales Aug 0.0%
Sep 15 08:30 Business Inventories Jul +0.6%
Sep 15 09:15 Industrial Production Aug +0.5%
Sep 15 09:15 Capacity Utilization Aug 77.4%
Sep 16 08:30 CPI Aug +0.2%
Sep 17 09:45 Michigan Sentiment Sep n/a

Best performing
industries of the week: Oil Drilling, Equipment & Service +4.49%,
Tires +4.45%, Water Utilities +4.22%

Worst performing industries of the week:
Semiconductor -7.15%, Airline -2.45%, Communications Technology -2.33%

Good night and see you next week.

T.Kamada

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