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November 04, 2005
Market Musings
The Dow Transports is off to the races with a new all time high. However, the Dow Industrials is lagging far behind and this has created a blatant non-confirmation. Will the Dow Industrials catch up and confirm or will it drag the Dow Transports down?
The Nasdaq gapped up and formed a doji. Big open and then no follow through. In addition, the index is getting frothy.
This time around the Nasdaq 100 is leading as it challenges its summer highs.
The Retail HOLDRS (RTH) broke above resistance at 95 with a gap. This gap better hold.
The Semiconductor HOLDRS (SMH) gapped up to resistance around 35. The gap is bullish as long as it holds.
Oil prices jumped $2 and bond yields (rates) advanced above 4.6% - yet stocks also moved higher.
Monica Rvitisuvo of SmartMoney thinks that video game stocks are ripe for a move higher (ATVI, TTWO, ERTS). It’s beginning to sound a lot like Christmas.
Retail sales numbers for October were strong. This could buoy consumer confidence and the Retail HOLDRS (RTH).
Greenspan notes that the economy is still growing.
MCD moved higher on good volume and this big real estate holder could offer some value.
The Thai SET surged over the last three days and may have put in an important low around 680.
Starbucks (SBUX) still manages to deliver. This quarter, SBUX credited their "hand crafted espresso based beverages". Sounds like a work of art, not a drink.
James Cramer notes that the big story in pharma is Amgen's tumor drug, not Merck's trial outcome. AMGN moved higher on good volume.
James Altucher thinks that AS&E (ASEI) can win government contracts for its "threat detection technology".
Mark Hulbert notes that bond timers are bearish in record numbers. However, bonds keep falling.
Earlier this week Oracle announced a free version of its database software. Now, Oracle's CFO resigned after just 5 months on the job. Something is rotten in the Kingdom of Denmark.
The Nasdaq surged 16 points, yet the 20 most active included 8 declining issues. Say what?
Posted by Arthur B. Hill at November 4, 2005 06:49 AM