Market Soapbox 05/19/05
Resistance: DJIA 10600; SP500 1200; Nasdaq 2100; NDX 1550
Support: DJIA 10400 ; SP500 1180 ; Nasdaq 2000; NDX 1500
Positive: energy, tech, consumer disc, telecom, financial, retail, networking, hardware, software
Weak: materials, health care, industrials, financial, pharma, biotech, banks, transportation, semis, gold bugs
52 Week HiLo: NYSE 88/15; Nasdaq 68/26; Amex 40/22
A/D Volume: NYSE 1111/480, Nasdaq 1131/478, Amex 141/26
Volume: NYSE 1.635B, Nasdaq 1.659B
Upcoming Reports:
FRI: None
Jobless Claims 321K (prior 341K, est. 325K); Leading Indicators -0.2% (Mar -0.6%, est -0.2%) 4th straight decline, 8th decline in 11 months; Philly Fed 7.3 (Apr 12, est. 25.3)
European (DAX +0.83%) & Asian markets (Nikkei 225 +2.23%) were up. Dollar up vs. Yen/Euro, gold, oil, bonds & commodities down. 10 year note -6 ticks +.026 @ 4.11%. Oil: -0.70% @ 46.92. Contra action: None.
Today's Sooey Pig Pig!! award goes to Lehman Brothers for upgrading Maxtor MXO a provider of hard disks for PC's from underweight to equal weight.
Income -182M, Net Profit Margin -4.8%, Forward PE -95 to 1, EPS -0.73, decelerating and negative EPS growth QoQ, Stock -23% in 12 months, Institutional Ownership 84%. Shame, Shame.
FYI: A previous recipient Netflix gained 100,000 new members as WalMart pulled out of the online DVD rental business. Netflix has 3 Million customers, Blockbuster 1 Million.
Netflix will still lose $5 - 15 Million this year. Carl Ichan & Blockbuster will spend $120 Million this year to beef up their online business. Netflix up 4% on the news.
What started as a sideways split tape, up and down day, resulted in a decent close with improved internals and a continuation of the best 4.5 day rally since the November elections. 8 of 10 sectors up on lower volume.
Yesterday and today's economic reports indicate rising energy costs, inflation, and oil/gasoline inventories. They also reveal a slowdown in industrial production, utilization and a modification in consumer spending.
The oil futures selloff continues but the energy sector has diverged. It appears that the market is staying afloat and has survived options expiration.
Internals are much healthier and if tech & energy can both head up, this market could jump up in leaps and bounds. Old resistance becomes new support and new resistance awaits.
Tomorrow lets see if we get a confirmation for this weeks action or a Friday selloff. We take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong.
Support: DJIA 10400 ; SP500 1180 ; Nasdaq 2000; NDX 1500
Positive: energy, tech, consumer disc, telecom, financial, retail, networking, hardware, software
Weak: materials, health care, industrials, financial, pharma, biotech, banks, transportation, semis, gold bugs
52 Week HiLo: NYSE 88/15; Nasdaq 68/26; Amex 40/22
A/D Volume: NYSE 1111/480, Nasdaq 1131/478, Amex 141/26
Volume: NYSE 1.635B, Nasdaq 1.659B
Upcoming Reports:
FRI: None
Jobless Claims 321K (prior 341K, est. 325K); Leading Indicators -0.2% (Mar -0.6%, est -0.2%) 4th straight decline, 8th decline in 11 months; Philly Fed 7.3 (Apr 12, est. 25.3)
European (DAX +0.83%) & Asian markets (Nikkei 225 +2.23%) were up. Dollar up vs. Yen/Euro, gold, oil, bonds & commodities down. 10 year note -6 ticks +.026 @ 4.11%. Oil: -0.70% @ 46.92. Contra action: None.
Today's Sooey Pig Pig!! award goes to Lehman Brothers for upgrading Maxtor MXO a provider of hard disks for PC's from underweight to equal weight.
Income -182M, Net Profit Margin -4.8%, Forward PE -95 to 1, EPS -0.73, decelerating and negative EPS growth QoQ, Stock -23% in 12 months, Institutional Ownership 84%. Shame, Shame.
FYI: A previous recipient Netflix gained 100,000 new members as WalMart pulled out of the online DVD rental business. Netflix has 3 Million customers, Blockbuster 1 Million.
Netflix will still lose $5 - 15 Million this year. Carl Ichan & Blockbuster will spend $120 Million this year to beef up their online business. Netflix up 4% on the news.
What started as a sideways split tape, up and down day, resulted in a decent close with improved internals and a continuation of the best 4.5 day rally since the November elections. 8 of 10 sectors up on lower volume.
Yesterday and today's economic reports indicate rising energy costs, inflation, and oil/gasoline inventories. They also reveal a slowdown in industrial production, utilization and a modification in consumer spending.
The oil futures selloff continues but the energy sector has diverged. It appears that the market is staying afloat and has survived options expiration.
Internals are much healthier and if tech & energy can both head up, this market could jump up in leaps and bounds. Old resistance becomes new support and new resistance awaits.
Tomorrow lets see if we get a confirmation for this weeks action or a Friday selloff. We take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong.
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