The major indexes continue to recoup about 1/3 of yesterday's losses with the Dow Industrials (INDU) 8,319 +1.27% up just over 100 points and market participants, bulls and bears, look to buy some pullbacks in stocks after a sharp decline from an impressive rally last week.
Sector action remains positive and the drive higher from late- morning levels is now being boosted by selling in Treasuries across the 5, 10 and 30-year maturities, with the benchmark 10- year YIELD ($TNX.X) now rising right back to 4.0%, which is a level that equity bulls most likely wanted to see.
I've been performing some updates to my "sector bell curve" which we discussed in an "Ask the Analyst" column two weekends ago, and sectors that look to be early leaders in last week's rebound show the semiconductor, retail, media, machinery/tools, Internet, forest/paper, chemical, building products, transport/non-air being those sectors where early bullishness has demand beginning to outstrip supply and showing reversal back into "bull confirmed" sector status.
One sector discussed two weeks ago that I had tied to a previous bullish profile in shares of Forest Labs (NYSE:FRX) $54.31 +5.55% from weeks and months prior has the drug sector bullish % (BPDRUG) from Dorsey/Wright and Associates reversing back up into "bull alert" status, and I view this type of sector action quite bullish for Forest Labs (FRX), which is a stock in the sector that we've viewed as bullish in recent weeks, that may have been "held back" by the sector and other "market" bullish % like the S&P 500 Bullish % ($BPSPX), which last week reversed back up into "bull confirmed" status and yesterday's managed to generate a net gain of 1 stock to a reversing higher point and figure buy signal to 41.4%.
Shares of Dow components Walt Disney Company (NYSE:DIS) $17.94 +3.1% lead today's list of Dow gainers. This stock resides in the "leisure" sector of Dorsey's bullish %, which just recently had the sector reversing back up into "bull alert" status. I like this stock as a bullish trader/investor play on a break above $19.00, which would have the stock breaking above its bearish resistance trend and triggering a "triple-top buy signal" at that level. One reason I mention this stock as bullish is that on Friday, the stock broke above its longer-term 200-day SMA of $17.10 on volume of 16.5 million shares, which was just over twice its average daily volume of 7.05 million shares.
In this past weekend's "Ask the Analyst" column, we discussed volume spikes at the longer-term 200-day SMA per a subscriber's question regarding Verity Inc. (NASDAQ:VRTY) $16.20 +1.25%, and the bullish side of me likes to see volume spikes when a stock breaks above its 200-day SMA.
Most actives in today's session have Boots&Coots (AMEX:WEL) $1.35 +22.7% jumping higher after the company announced it has been subcontracted by Halliburton's Kellogg Brown & Root subsidiary to supply firefighting and well control services in Iraq. While speculation and uncertainty still surround WEL regarding the company having to potentially file for bankcruptcy, today's agreement with Kellogg Brown & Root gives renewed lift to the stock after falling from a high of $2.50 early last week to a low of $0.67 on Friday when few well fires were seen in Iraq.
Shares of semiconductor bellwether Intel (NASDAQ:INTC) $18.11 +1.57% are today's second-most actively traded and recoup roughly 1/2 of yesterday's losses. I still view this stock as bullish and continued improvement was found in Dorsey/Wright and Associates semiconductor bullish % (BPSEMI) last week, with the sector bullish % rising to 40% and still "bull confirmed." For disclosure purposes, I currently hold a bullish position in the Intel.