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Mixed Mocha Monogamy

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The major indices finished mixed, where the coffee served up today could be best described as a new Starbucks flavor named "Mixed Mocha Monogamy."

The very broad NYSE Composite ($NYA.X) 6,538 +0.16% scratched out a 10-point gain with breadth finishing even at 16 to 16, while a late-afternoon bid had the also very broad NASDAQ Composite (COMPX) 1,858 -0.57% finishing down 10 points with internals finishing at their best readings of the session, but negative with decliners outnumbering advancers by a 9 to 5 margin.

This morning's June durable goods data found a negative response early. While May's previously reported 1.6% decline was revised up to show a more modest decline of 0.9%, Junes 0.7% gain was half the 1.5% forecast.

Intra-day traders did NOT need a cup of coffee to see some action and volatility in today's trade. Traders needed a cup of coffee to stay away today as the Dow Industrials (INDU) 10,117 +0.31% fell from 10,080 to 10,000 by lunchtime, then traded a session high of 10,146, a 146-point swing back higher in just under 2.5 hours.

Market Snapshot / Internals - 07/28/04 Close

The only bullish signs I see from the internals is that for a second-straight session, the number of new lows at the NASDAQ didn't exceed Monday's lows of 259.

To view that as a bullish sign takes a 1/2-pint of Bailey's Irish Cream in your cup of coffee, but a key ingredient to a cup of Mixed Mocha Monogamy.

The Semiconductor Index (SOX.X) 399.49 -0.85% came within a couple of points of its WEEKLY S2, with today's component casualty (coffee grounds at the bottom of the cup) being LSI Logic (NYSE:LSI) $5.06 -13.35% with Smith Barney downgrading the stock to "sell" from "hold" and cutting their price target to $4.50 from $7 after the company guided below consensus and confirmed its chipsets are not going to be in the next generation of the Sony PlayStation platform.

Pivot Analysis Matrix - Daily Intervals

Perhaps the "easiest trade" among sectors today was in gold stocks, when the Dollar Index (dx00y) 89.75 -0.04% moved higher at the open to test those correlative levels of resistance, but came just shy of MONTHLY R1 to reverse lower.

Heck.... Dow component Alcoa (NYSE:AA) $31.52 +1.12% began showing some bid on the dollar's turn lower, moving off the $30.80 level, consolidating just below $31.00, and when the Beige Book was released, AA found a nice bid as the Dow Industrials (INDU) began lifting from their DAILY S1.

More earnings and economic data tomorrow, where early on, the OEX would show some correlations at DAILY/WEEKLY Pivots bound by WEEKLY R1 and DAILY R1.

At 08:30 AM EDT, second-quarter employment cost index is expected to show a 0.9% gain compared to prior 1.1% gain. At the same time, weekly initial jobless claims will be released with economists' forecasting 340,000 new filings compared to 339,000 a week ago.

Then at 10:00 AM EDT, the June Help Wanted Index is expected to show a gain to 40 from 39, where the number of new job postings in some of the nations largest newspapers were to have gotten a little thicker.

Hey... did you know that some economists actually judge the health of an economy by how thick the classified ads section is?

Some "top of mind" job-related stocks that traders will often- times follow are on-line job poster Monster Worldwide (NASDAQ:MNST) $21.14 -1.74%, which traded a rather large range from $23.58 to $19.69 in today's session. Paychex (NASDAQ:PAYX) $29.79 -0.86%, which sets on an upward trend from its October 2002 low to March 2003 pullback low is another stock trader's will monitor for the market's outlook on job creation. Paychex offers payroll services to business.

Jeff Bailey

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