Announced 2-for-1 stock splits from Research in Motion (NASDAQ:RIMM) $107.98 -1.63%, Yahoo! Inc. (NASDAQ:YHOO) $48.35 -0.86% and Genentech (NYSE:DNA) $108.45 after this evenings quarterly earnings reports, along with Dell Computer (NASDAQ:DELL) $34.76 +0.20% will be tomorrow morning's headlines from tonight, where along with retailers reporting their monthly same store sales figures, tomorrow's session could get wild.
Aside from Research in Motion (NASDAQ:RIMM) $107.98 -1.63, which slipped to $106.48 in tonight's extended session, upbeat earnings from Yahoo! (YHOO), Genentech (DNA) and the raising of revenue guidance from Dell (DELL) has already painted a positive picture for tomorrow's open, where the NASDAQ-100 Tracker (AMEX:QQQ) $36.94 -0.10% which finished down $0.04 on the regular session, ticks higher at $37.27 in extended hours.
After-hours trade found Yahoo! (YHOO) gaining 9.9% to $53.14, Genentech (NDA) rising 2.9% to $11.60, and Dell (DELL) gaining 2.7% to $35.78.
Dell's raising of revenue guidance had the Semiconductor HOLDRs (AMEX:SMH) $40.87 -0.26% gaining $0.48, or 1.17% in extended hours, where computer chip-giant Intel (NASDAQ:INTC) $27.62 -2.29% recouped the bulk of its intra-day losses, rising 1.9% to $28.16 on thoughts that Dells raising of revenue guidance shows demand for computer/server chips remains strong.
Market Snapshot / Internals - 04/07/04 Close
The small cap Russell 2000 Index ($RUT.X) was the only major average to finish with a gain, and just as I had thought the small caps were going to take a rest as they slipped back below 600 at the opening, it was the small-caps that showed greatest resilience from the mid-point of today's session.
Whether it was the WEEKLY Pivot or 500.00, or those in the know regarding Dell's pending news, the Semiconductor Index (SOX.X) 507.22 -0.17% held the 500 level, keeping thought alive there may still be some legs to the bull's recent rebound for technology, despite some negative earnings guidance from Nokia (NYSE:NOK) $16.92 -1.68% and Seagate Technology (NYSE:STK) $14.98 -3.91%.
Pivot Analysis Matrix -
In order to try and save time and get the major indices covered, I'm trying something a little different in the Pivot Matrix (not sure how much time it will save), where I'm coloring correlative levels in BLACK (I usually box each one, which takes more time). Those levels UNDERLINED that are in BLACK, are levels that are correlative, but have also witnessed TRADE this week, or this MONTH.
For example.... The Semiconductor Index (SOX.X) WEEKLY Pivot of 501.85 saw trade today (underlined) but is also correlative support with tomorrow's DAILY S1. Both the NDX/QQQ MONTHLY R1's have already seen trade this MONTH, and are correlative resistance points with tomorrow's DAILY R2's.
I get the feeling, based on tonight's after-hours trade, that this may have been a pre-determined fate ahead of tonight's after-hours news.
Retail HOLDRs (AMEX:RTH) - WEEKLY Intervals
Two views on the retailers have had analysts saying retail should show positive trends this month, but summer weather finds consumers outdoors recreating. Bull's say retail should benefit from increasing consumer confidence with economy starting to generate jobs.
Semiconductor Index (SOX.X) - Daily Intervals
Two "chip-related" earnings warnings from Nokia (NOK) and now Seagate Technology (STX) have had the SOX.X backing off Monday's highs, but for any number of reasons, 500 held support, and Dell's upbeat guidance now gives the sector a near-term bullish catalyst.
Dorsey/Wright's Semiconductor Bullish % (BPSEMI) reversed up to "bear correction" status at 42% on Friday (nonfarm payroll data) and after seeing the rise in the QQQ after its sector bullish % ($BPNDX) reversed up to "bear correction" status, some of today's buying back near 500 may well have been some bearish short- covering.
NASDAQ-100 Tracking Stock (QQQ) - Daily Intervals
In today's 03:15 PM EST update, I made note that RF Micro Devices (NASDAQ:RFMD) $8.71 +5.32% CFO reaffirmed the company's prior guidance, where the CFO stated that RFMD's business hasn't slowed. That news hit the wires at about 02:25 PM EST, and there was a somewhat notable bid that came into the QQQ.
However, there's something that I can't explain as it relates to any positive afternoon news, where MANY stocks, when I look at them, from all types of sectors, all showed what looks to be computer buying just before 03:00 PM EST.
The only news that might explain the activity is that earlier in the day, there was reports that a box was found in the Atlanta Airport, and at 03:00 PM EST, news had it being a non-event.
Heck! I was so busy today, I didn't even know there was a suspicious package found at Atlanta's airport, and I'm not sure if it would have impacted any of my trade decisions today.
S&P 500 Index (SPX.X) - Daily Intervals
When both the SPX and OEX broke back under their respective WEEKLY 38.2% retracement, aside from the SOX.X hovering around its WEEKLY Pivot, I thought for sure we were headed lower than the 7.6 points shown by the close.
With that said, Linda discusses a Japanese Candlestick formation she is familiar with.
Market Monitor (04/07/04) - Linda Piazza (Candlestick analysis)
Oh heck! Here's the OEX chart where I've turned on my Candlesticks. It's all "Japanese to me," but here's the OEX chart.
S&P 100 Index Chart - Daily Interval
I know that red means down and today's close was below yesterday's close.
Dow Industrials (INDU) Chart - Daily Intervals
If Linda's on to something with those Candlesticks, then I can perhaps make the tie that if the bearish "Three Inside Down Bearish" on the OEX is going to play out, then the INDU will most likely stay pegged below its WEKLY R1 and downward trend.
With 28 of the 30 components trading negative by their close, the INDU seemed to trade like it saw three bears.