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October 26, 2005
Market Musings
There were lots of doji (candlesticks that look like crosses or plus signs) yesterday and this shows indecision.
A number of indices and stocks are trading near resistance from broken support - the support breaks in early October turn into resistance.
The Nasdaq formed a potentially bearish harami cross over the last two days. Watch for a move below 2083 to confirm.
The Retail HOLDRS (RTH) is still having lots of trouble with resistance at 94.
The Regional Bank HOLDRS (RKH) is nearing resistance from the July trendline.
The Consumer Discretionary SPDR (XLY) formed a rising flag over the last two weeks.
The Energy SPDR (XLE) broke above falling wedge resistance at 48 with a gap.
James Stewart of SmartMoney notes that three companies are set to dominate the internet and are growth stocks of the decade - YHOO, EBAY and GOOG.
Amazon AMZN reported lower profits and a reduced outlook that hit the stock after hours. This is not a true internet titan, but more of a retailer.
Dupont DD is the latest company in the materials sector to report weak earnings and a reduced outlook.
Lexmark LXK showed that stocks can become oversold and remain oversold as the company warned yet again.
International Paper IP is the latest company to be hit by rising costs.
William Gabrielski of TheStreet.com considers Micron MU compelling after its chip deal with Intel.
CHIR continues to consolidate after its big gains and remains under accumulation.
SNWL surged above resistance with good volume.
PACT gapped higher and closed strong on good volume.
INTV consolidated over the last few months - watch 9.7 up and 8.2 down.
VRTY gapped up and closed strong with good volume.
MEOH moved higher over the last two days with good volume.
ODFL is leading the transports with a breakout on good volume.
ESL is breaking down on high volume.
JOSB remains in a triangle as downside volume outpaces upside volume.
DSPG is testing resistance at 26.5 and a breakout would be bullish.
Posted by Arthur B. Hill at October 26, 2005 06:59 AM