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October 24, 2005
Market Musings
The Nasdaq formed a doji just below resistance from broken support at 2100. Let's see if the bulls can punch through 2100.
The Russell 2000 ($RUT) formed a rising flag over the last two weeks and a move below 619 would be bearish. Within the falling flag, a bullish engulfing and harami formed. A move above 640 would be bullish.
The Dow Diamonds (DIA) closed at its lowest level of the week.
The S&P Midcap ETF (MDY) formed a bullish engulfing (Tue-Wed) and then a harami (Thur-Fri). Watch for a break above 126 for follow through.
SPY formed a spinning top near support at 117. Watch 120 for a breakout.
Oil is testing support at 60 and a break could buoy stocks.
The Retail HOLDRS (RTH) tried once again to break above 94 and failed. Will the third time be lucky?
Schlumberger (SLB) reported sharply higher earnings and I am expecting more of this in the oil patch. However, the stock closed down.
Dan Luskin of SmartMoney likes Wal-mart over Exxon.
Rising cost hurt Caterpillar (CAT) earnings and this theme continues.
XRX reported good earnings and recovered from a support break with a high volume surge.
20/20 will air a show reporting that McDonalds and Starbucks served regular coffee when decaf was ordered. I am sure if you go into 100 coffees shops, there is a chance that 5-10% will make this mistake. However, it is not a conspiracy as 20/20 would have us believe.
JBL of TheStreet.com thinks Pfizer and Walmart are bargains. PFE looks like a falling know and just gets cheaper and cheaper.
Broadcom (BRCM) formed a massive outside reversal on high volume Friday.
Hewlett Packard (HPQ) formed a rising flag over the last two weeks - Watch support at 27 for a continuation lower.
Juniprer (JNPR) surged on big volume as certain networking stocks continue to show strength.
Novell (NOVL) continues to show good relative strength and upside volume has been outpacing downside volume the last few months.
Filenet (FILE) formed a triangle over the last few months and surged on Friday.
Posted by Arthur B. Hill at October 24, 2005 11:05 AM