Option Investor
Market Updates

Stocks hold higher ground despite jobless claims

HAVING TROUBLE PRINTING?
Printer friendly version

Stocks continue to shrug off economic data that spells of gloomy economic conditions. As has been the case for most of the week, today's news of unemployment rising to 5.4% as 415,000 workers lost their jobs has not affected stock prices all that much.

The S&P Retail Index (RLX.X) leads sector gainers with a 2.4% gain, while Semiconductors (SOX.X) rise 2.17% and deeper cyclicals found in the Chemical sector (CEX.X) rise 1.79%.

The long-end of the bond market and the 10-year ($TNX.X) and 30- year ($TYX.X) are seeing a good round of selling. YIELDS are rising in both to 4.331% and 4.932% respectively. The 5-year note ($FVX.X) is also seeing selling as YIELD in that note rises to 3.57%. The short-term 13-week ($IRX.X) is seeing buying with YIELD falling to 1.95% ahead of next weeks FOMC meeting.

Triple, triple for Chemical Index

I like "boring" stock, make that, I LOVE boring stocks. Not that any stock in the market is predictable, but sometimes it's those boring stocks that put money in a traders pocket on a more consistent basis than some of the more volatile and glamorous stocks we know as technology stocks.

Today's trade at $405 in the S&P Chemical index is important. Not just because many of the stocks in this group are considered "deep cyclicals" that often times lead a market higher in an economic recovery, but the breaking of downward trend (put in place in June) could have the group entering another bullish phase.

S&P Chemical Index - $5 box

Today's trading at $405 was enough to break a triple top at the $400 level and break this index above longer-term downward trend (bearish resistance).

Neogen Corporation - $1 and $0.50 box

Yesterday, this four-lettered chemical stock, Neogen Corp. (NASDAQ:NEOG) completed the bullish triangle formation when the stock traded $20, then jumped to a session high of $22.38. Today the stock is pulling back to the $20.83 level, but looks bullish longer-term. Unfortunately for options traders, the stock does not currently trade options, but may be appropriate for longer- term investors the like to hold strong stocks in what looks to be a strengthening sector.

Jeff Bailey
Senior Market Technician
Option Investor

Intraday Update Archives