Wednesday, August 6, 2008
Markets Inch Higher After Early Sell Off - Nasdaq Up Strong
DJIA + 40.30, +0.35%
SP500 + 4.31, +0.34%
NASDAQ Comp. + 28.54, +1.21%
Russell 2000 + 4.86, +0.67%
NYSE NASD
Advancing 1,687 1,685
Declining 1,383 1,191
Oil $118.58 -$0.59
Gold $886.10 -$3.10
$SOX 354.20 +3.87
Strongest Sectors: XLE +2.28%...XLI +1.91%...XLK +1.91%
Weakest Sectors: XLF -1.02%...XLY -0.50%...XLV +0.39%
The markets opened down on weak earnings from Freddie Mac (FRE) which reported a larger than expected loss of $821 million. FRE was down 19.28%. PCLN had gapped down Tuesday evening on earnings. Broad markets rallied and closed positive for the day. Fannie Mae (FNM) reports earnings Thursday morning before the open
Index Commentary
The DJIA stayed above S1 of Tuesday large white candle and then moved higher closing near its 50 DMA…if Tuesday’s break above 11, 600 holds the new chart target is 11,951.
The SPX also stayed above Tuesday’s S1 level and moved closer to its 50 DMA…if Tuesday’s breakout of 1,284 holds the new chart target is 1,321.
The Nasdaq was the strongest of the broad indices and closed above it 50 DMA for the first time since early June…broke soundly above horizontal resistance at 2,350…new chart target is 2,440
The RUT formed another new high close and closed above its 200 DMA for the first time since early June…since the RUT has closed only two days above its 200 DMA since last November we will watch this breakout very closely to see if it holds…if it does it suggests higher prices…a successful break above 726 will suggest a new short-term chart target of 758.
Stock Commentary
BIDU a bull flag support bounce
POT a counter trend support bounce
FWLT a morning star pattern at major support
RIMM breakout after bull flag support bounce yesterday
BUCY a morning star pattern at support
FSLR a bullish engulfing pattern at support in a sideways trend
AGU a morning star pattern after earnings in a downtrend near its 200 DMA
AAPL a breakout following a support bounce Tuesday, stalling at its 30 DMA and closing at its 20 and 200 DMA
Wednesday's Action
Moving Up: BIDU, POT, FWLT, RIMM, BUCY, FSLR, AGU, CNX, DRYS, AAPL, MTL, BTU, GRMN, ANR, MOS, MON, IPI, SOHU, NUE, SCHN, CF, X, CLF, IBM
Moving Down: PCLN, MA, MEE, V, FNM, STRA, FRE, DECK, GS, AMZN, EXPE
Intermediate Term Market Trend: Neutral
Short Term Market Trend: Up
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2 comments:
Dave,
As always thanks for sharing your insights with us.
Derek
Derek,
You're welcome.
Dave
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