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  Jeff Bailey   1/27/200,  5:26:39 PM
Closing Internals at this Link

 
 
  Jim Brown   1/27/200,  5:00:38 PM
BRCM said on conference call that revenues could be as much as +10% higher this quarter.

 
 
  Jim Brown   1/27/200,  4:01:15 PM
Earnings after the close:

AMZN est +0.29, act = +0.29 Raising Guidance
BRCM est +0.16, act = +0.19 beat - $750M new stock
FLEX est +0.14, act = +0.17 beat raised guidance +3 cents
AFCI est +0.09, act = +0.10 beat
ADVP est +0.55, act = +0.55 inline
EFII est +0.21, act = +0.27 beat
CYMI est +0.00, act = +0.04 beat
ERTS est +1.20, act = +1.26 beat
ELX est +0.23, act = +0.24 Raising guidance +2 cents
FISV est +0.42, act = never announced
MENT est +0.31, act = +0.30 miss
MLNM est -0.31, act = -0.30 beat
MGAM est +0.48, act = +0.48 inline
PXLW est +0.09, act = +0.06 miss
HRS est +0.49, act = +0.50
RHI est +0.03, act +0.03
NET est +0.21, act +0.26 beat
AV est +0.05, act +0.07 beat
NTIQ es -0.01, act = -0.04 miss

AMZN now down -2.13 in after hours.
EYE - Visx, warned for next quarter
BRCM - down -$2 in after hours
MENT - book-to-bill less than expected

 
 
  Linda Piazza   1/27/200,  3:59:28 PM
As has happened so many times lately, the TRAN looks as if it might close beneath its 10-dma, but above its 21-dma. It's resting just below the ascending trendline it's been tracking so long. Stochastics and RSI look bearish, but the MACD hasn't yet turned down. ADX is below 20, indicating that we should be able to trust the oscillators, but I'm watching those MA's, too.

 
 
  Linda Piazza   1/27/200,  3:54:44 PM
The NDX is slipping beneath the 60-minute 100-pma, but it's resisting falling beneath Friday's 1519.74 low, and until it does that, it obviously is not going to head down to test the 130-pma on that chart. In fact, the low so far has been exactly 1519.74. We're in prime double-bottom territory for the NDX, but oscillators still look bearish.

 
 
  James Brown   1/27/200,  3:52:02 PM
Here's a bearish candidate...PIXR has broken support at its 200-dma and the $65.00 level. There is some support near 62.25 but shares might be vulnerable to the $60 level. Earnings should be Feb. 4th.

 
 
  Linda Piazza   1/27/200,  3:39:36 PM
The OEX has not yet been able to move back into the upper half of its nested Keltner channels, but it looks as if it's going to try one more time as it again rises toward 569-569.40.

 
 
  Linda Piazza   1/27/200,  3:35:58 PM
The advdec line is no longer generally headed up since 1:30. Instead, it began turning down about 40 minutes ago. TRIN and TRINQ continue to turn up.

 
 
  James Brown   1/27/200,  3:32:26 PM
Traders may want to keep an eye on ASD. Shares appear to be signaling a reversal with its failed rally at the $110 level.

 
 
  James Brown   1/27/200,  3:17:43 PM
Golden West Financial (GDW) has really been out performing the market the last few days with strong volume supporting the rally. Now shares are butting up against resistance at $104, which has held the stock in check for the last three months. Aggressive bears might see this as an entry point but look for the failure...bulls will be looking for the upside breakout.

 
 
  Linda Piazza   1/27/200,  3:17:24 PM
Yep, Jane. (See Jane's 15:11 post.) Seems as if no matter which direction a person takes these days, it's the wrong one unless that person has the guts to hold on no matter what, and just happens to be right in the end. This is weird trading, still "I believe" trading, and I'm not saying that just because I'm here to represent the still-learning trader, either. When methods that have been used to watch markets for centuries, not just for a few years, keep giving false clues, something is happening besides normal market psychology and action.

 
 
  Jeff Bailey   1/27/200,  3:17:11 PM
Dow Industrials (INDU) 10,631.92 -0.65% ... breadth negative at 8:22. MCD +0.79% while SBC -2.99% and CAT -2.82%

 
 
  Jane Fox   1/27/200,  3:11:49 PM
Linda the best direction to be today like so many days lately is Flat.

 
 
  Jeff Bailey   1/27/200,  3:10:37 PM
03:00 Internals at this Link

 
 
  Linda Piazza   1/27/200,  3:10:20 PM
If that was a stop run, as Keene suggested it might be, then we could see the indices quickly reverse gears. Be careful, whichever direction you're leaning.

 
 
  Linda Piazza   1/27/200,  3:06:43 PM
The NDX is threatening to break through the bottom of the possible "b" distribution form on its 30-minute chart, but I would wait for a move below Friday's 1519.74 low before I considered that break confirmed. This is especially important as the NDX is now testing its 60-minute 100-pma, the same average from which it bounced on Friday. A fall through here could send it quickly down to the 130-pma at 1514.50, however.

 
 
  James Brown   1/27/200,  3:04:42 PM
Just an observation...LLY ($68.67) recently reversed its rally above $70 and its 50-dma. Now the stock appears headed towards the 200-dma near $65. Furthermore the stock appears to be building a head-and-shoulders pattern with a descending neckline. It will be interesting to see if reaction to LLY's earnings this Thursday produce the H&S breakdown or nullify it with a new rally attempt.

 
 
  Linda Piazza   1/27/200,  3:00:48 PM
The advdec line has been generally climbing since about 1:30 EST, although it's still in negative territory. I'm keeping an eye on that, since such climbs sometimes precede moves up in the indices. We can discover lots of mixed signals today, though, with the TRIN also climbing.

 
 
  Jeff Bailey   1/27/200,  2:59:30 PM
Bond market closes in approx. 2-minutes. Be alert as we might see some type of equities take place to the close, which may be the prevailing move into tomorrow's FOMC.

 
 
  Jeff Bailey   1/27/200,  2:51:01 PM
Airline Index (XAL.X) 67.26 +1.64% ... was strong at the open. Easing to session highs here.

 
 
  Linda Piazza   1/27/200,  2:49:15 PM
If you look at the NDX 30-minute chart action without benefit of any envelopes, Bollinger bands, pivot points, oscillators or moving averages, what you see is an index that fell steeply (stem of a "b") and then is consolidating in a roughly rectangular tight pattern at the bottom of that fall (bulb of the "b"), making this look like a possible "b" distribution pattern. If you add in the 30-minute 100/130-pma's, you see that the bulb portion is forming below those averages, confirming the likely bearishness of the patterns. Add in pivot points, and you see that the consolidation is taking place just below the weekly pivot and the daily S1, also slightly bearish. Add in the oscillators, though, and the picture gets mixed up a bit, because CCI, RSI, and Momentum are all trying to steady and turn up, and MACD tries to flatten below signal. Which do you believe?

 
 
  Jeff Bailey   1/27/200,  2:47:34 PM
S&P Banks (BIX.X) 354.39 -0.07% ... nothing. Session high still has been 355.38 and just off lows of 353.74.

 
 
  Jeff Bailey   1/27/200,  2:39:17 PM
Dow Industrials (INDU) 10,648 -0.5% ... on the alert here. Link

Yesterday at 02:15:16 I made some notes in market monitor regarding the 10,613.48 level just as INDU was breaking above. That seemed to be the "key" intra-day level yesterday, and found support buying today.

Benchmark Dow breadth as negative at 20:10. MCD +0.79% is strength, while SBC -2.95% and CAT -2.61% weakness.

 
 
  Linda Piazza   1/27/200,  2:35:06 PM
You just can't trust anything with a "bearish" in front of it, can you, including potential bearish divergence on the oscillator, a potentially bearish climb in the TRIN, etc. The OEX is coming back to test its middle-of-the-channel Keltner resistance, with a climb back into the upper half of the Keltner channels having the OEX action look more bullish, if that should happen. Keltner channel resistance can be found between here and 569.50, and then at 570.64 and 572.25.

 
 
  Gerald Melson   1/27/200,  2:29:21 PM
Just announced that Jack Paar died .... anyone over the age of 50 should remember him well ....

 
 
  Jeff Bailey   1/27/200,  2:26:58 PM
HL Camp & Company has updated their buy/sell program premium levels.

Their computers are set for program buying at $-0.34 and set for selling at $-2.44.

A quick review of my QCharts $PREM.X would show one sell program premium alert generated at 10:00 AM EST, with zero buy programs generated so far in today's session.

 
 
  Linda Piazza   1/27/200,  2:21:37 PM
Earlier we saw bullish divergence on the OEX lower five-minute low, and now we're seeing bearish divergence on the lower five-minute high. That would need to be confirmed by a new OEX low, however. That leaves the possibility that the push to a new minimally higher five-minute on the NDX, for example, was a stop-running push that trapped some bullish players and tricked some bearish ones out of their plays.

 
 
  Jeff Bailey   1/27/200,  2:20:37 PM
02:00 Internals at this Link

 
 
  Linda Piazza   1/27/200,  2:16:43 PM
The TRAN slips minimally below the ascending trendline that's been supporting its prices through so many months, but it's had other times when it's pierced it intraday, so we should wait until the close to be sure of the TRAN's action. Since the 50-dma has proved so important, I wouldn't consider that violation of the ascending trendline confirmed until and unless the TRAN fell through the 50-dma, currently at 2975.75. The stochastics and RSI have rolled down, but so far, but the stochastics haven't yet been pulled down out of territory indicating overbought conditions and MACD remains flat. It's looking as if this index needs to consolidate or else dip down and reestablish support at that average, though, but indices don't seem inclined to retrace lately, so I'm not sure whether that will be done.

 
 
  Linda Piazza   1/27/200,  2:05:57 PM
The NDX has just reached a higher five-minute high, although it immediately pulled back a little. This is the kind of action that's sometimes seen in stop-running pushes, as stops are run just before prices turn again, but the five-minute oscillators showed bullish divergence as that lower low was reached, so the short-term picture remains more bullish than bearish.

 
 
  Linda Piazza   1/27/200,  1:59:03 PM
The OEX is also breaking through its descending trendline off the 10:10 level, but I think we could have expected that at some point. I'm more focused on mid-channel Keltner resistance, at 569.48, and on a new short-term high with a move back above 570. Those will be my first signs of increasing bullishness.

 
 
  Jim Brown   1/27/200,  1:48:00 PM
A reader pointed out that the market makers and mutual funds will probably try very hard to keep the indexes at 10600, 2100, 1150 for the month end on Friday. This would be good for keeping the cash flowing into funds. The flip side of this would be a significant drop below those numbers. It would indicate the trend is changing and the funds lost the battle. This makes the 10600/2100 numbers very critical the rest of the week. At least in my mind.

 
 
  Linda Piazza   1/27/200,  1:45:59 PM
That's good to know, James. (See his 13:36 post about the SOX.) Just below that 50-dma is the 72-ema at 504.24, with that average even more influential in recent trading. I don't remember which of my co-writers started me watching the 72-ema (Jonathan? Jim?), but it's certainly an important average on some charts.

 
 
  Linda Piazza   1/27/200,  1:40:52 PM
Although the VIX has turned down in the last few minutes, it's been climbing most of the day, and is now up to the lofty level of 15.25. The VXO had been climbing, but now drops back to 15.12.

 
 
  James Brown   1/27/200,  1:38:54 PM
Also notable is the MACD sell signal in the IUX insurance index. The IUX has just broken its simple 10-dma and should it break down through the 310 level (currently at 312) it may portend much more serious profit taking in a sector that's been up for 9 weeks in a row.

 
 
  Linda Piazza   1/27/200,  1:36:35 PM
We're entering the usual 1:35-1:55 stop-running time of day. This could be particularly treacherous today, as the object will be to see whether support or resistance holds. I'm never good at guessing which will be tested, although the Keltner channels suggest resistance will be tested with a short-term climb toward $38-38.16 on the QQQ and toward 569-570 on the OEX. If such a climb should be quickly knocked back, bears grow braver. If it isn't, bulls do.

 
 
  James Brown   1/27/200,  1:36:19 PM
FYI: the SOX index is approaching its simple 50-dma (currently at 515), which sets up for a potential bounce form previous resistance in late December near 512.

 
 
  James Brown   1/27/200,  1:33:21 PM
Being hit hardest by today's pull back are:

DDX disk drive index: -2.02%
INX Internet index: -1.68%
XBD broker-dealers: -1.76%
BTK biotech index: -1.98%
GSO software index: -1.44%
NWX networking index: -1.52%

 
 
  James Brown   1/27/200,  1:29:08 PM
The heaviest selling is in the Semiconductor index (SOX), down 3.73%. After last night's earnings reports investors are taking money out of TXN -4.15% and NVLS -12.89%.

 
 
  Linda Piazza   1/27/200,  1:26:56 PM
The QQQ's are at the 60-minute 100-pma, at $37.86. They bounced from this average when they hit it last Friday. We're at yet another possible bounce point then, but a fall through this average might soon see a test of the 130-pma at $37.64. The 60-minute oscillators are configured much as they were then--bearish--but we know they're not much help over recent months.

 
 
  Jonathan Levinson   1/27/200,  1:26:48 PM
Strange bedfellows those 3 gainers make, James.

 
 
  James Brown   1/27/200,  1:25:54 PM
Only three sector indices are currently green:

XAU gold & silver index: +3.06%
XAL airlines index: +0.95%
DJUSHB home builders: +0.39%

 
 
  Linda Piazza   1/27/200,  1:23:43 PM
The OEX rests now on its 60-minute 21-pma, having dropped below the 30-minute version during this current 30-minute period. Lately, we've often seen the OEX trapped between the two averages. The 60-minute oscillators look bearish, but without a quick drop below the 60-minute 21-pma at 568.06, I would expect either a bounce or--perhaps more likely--consolidation between that average and the 30-minute version at 569.40. The Keltner channels suggest there's more downside to go, but there's a slight hint that resistance will be tested before that downside is seen.

 
 
  Linda Piazza   1/27/200,  1:18:52 PM
And the QQQ's hit a new day's low.

 
 
  Linda Piazza   1/27/200,  1:18:21 PM
I was just talking with Mike Parnos, both of us watching the QQQ's today. He sends along his warning that daytrading this market can be hazardous to your trading account, although those of you who read Mike's columns know that his wording was a bit more colorful than mine.

 
 
  Jeff Bailey   1/27/200,  1:18:10 PM
Sell prog. prem alert if using yesterday's levels just as SPX trades DAILY S1 of 1,145.79.

QQQ = $37.90 ... INDU = 10,620.

 
 
  Jeff Bailey   1/27/200,  1:16:27 PM
01:00 Internals at this Link

It's been a steady 2-point decline per hour for the SPX.

Number of decliners still building, but at slower rate. Advancers steady.

SPX nearing our DAILY S1 as discussed briefly in last night's Index Trader Wrap.

 
 
  Linda Piazza   1/27/200,  1:08:37 PM
The OEX is drops below midline Keltner support and below the weekly R1.

 
 
  Jeff Bailey   1/27/200,  1:04:02 PM
No Update from HL Camp & Company at this point.

Using yesterday's levels, would have seen a sell program alert at 10:00 AM EST with SPX = 1,153.57 and 12:00 PM EST 1,150.48.

SPX 1,147.92 here. Roughly 55-minutes until 02:00 PM EST.

 
 
  Linda Piazza   1/27/200,  12:57:33 PM
The $TRAN is sinking down to test its 30-minute 100/130-pma's again. Yesterday, the TRAN tested the same averages, with a bounce from the 130-pma and back up through the 100-pma happening yesterday afternoon. As the TRAN tests these averages today, it's at an ascending trendline that's been supporting its prices since June. It's been following that trendline and its 50-dma fairly closely since June, but now the 50-dma has diverged a bit from the trendline, with the trendline at the TRAN's current 3045 level and the 50-dma at 2975.83. I'm wondering if it's not time for the TRAN to dip down to touch that 50-dma again or else consolidate a while longer at the current level while the 50-dma catches up.

 
 
  Linda Piazza   1/27/200,  12:46:32 PM
The OEX continues to hold at support, but it's not yet making any upward progress, either. The advdec line looks as if it's trying to steady and OEX five-minute MACD tries to make a bullish cross from below signal. Resistance is still pretty thick, but this should be strong support, too, and I don't yet have a firm feel for which direction this will go.

 
 
  Linda Piazza   1/27/200,  12:43:59 PM
Earlier today, up volume was slightly above down volume on the NYSE, but now down volume is slightly bigger. Down volume is now more than double up volume on the Nasdaq, a change from this morning's 1.3 times up volume.

 
 
  James Brown   1/27/200,  12:42:09 PM
An interesting headline that crossed the wires this morning... Google has completed its pre-IPO audit, according to the NY Times.

 
 
  James Brown   1/27/200,  12:34:50 PM
Shares of Micron Technology (MU) are out performing the semiconductor index (SOX) with a 4.4% gain. MU received two upgrades to a "buy" this morning from UBS, who raised its price target to $18, and Smith Barney, who raised its price target to $21. Both analysts believe DRAM prices will bottom and improve through out 2004.

 
 
  Jeff Bailey   1/27/200,  12:33:07 PM
S&P Banks (BIX.X) 355.38 +0.10% ... session high has been 355.38, just shy of its MONTHLY R2 of 355.39.

I've got an upside alert set at 356, which if triggered, might be an alert to SPX/OEX strength.

 
 
  Jeff Bailey   1/27/200,  12:29:11 PM
Becton Dickinson (BDX) $44.18 -1.16% Link ... announces 10 million share buyback. This is in addition to the 1.17 million shares remaining under a prior announced 10-million share buyback dated 01/28/2003.

 
 
  Jeff Bailey   1/27/200,  12:26:30 PM
12:00 Internals at this Link

 
 
  Linda Piazza   1/27/200,  12:24:39 PM
The OEX is finding support, at least temporarily, at its central Keltner support, weekly R1, and midline support from yesterday's tall white candle. It's not rebounding quickly, however, and neither is the advdec line. As long as the OEX is above that midline Keltner channel support, it's in bullish mode, but it's only minimally above it at the current time, and the current consolidation pattern looks a bit like a measured distribution pattern ahead of a further plunge. Resistance gathers much more thickly than support, with resistance at 570.28, 570.90, and 572.24-572.67.

 
 
  James Brown   1/27/200,  12:24:31 PM
Dow component CAT is painting a possible reversal candlestick after its morning earnings report today. Currently the stock has support at its simple 30-dma, where traders have bought the dip over the last couple of weeks in addition to support at $80 and its 50-dma.

 
 
  James Brown   1/27/200,  12:18:20 PM
Ouch! Shares of Netegrity (NETE) are down almost 25% on extremely high volume after last night's earnings report. The company actually beat estimates by 2 cents with net income of 6 cents per share. This was a huge improvement over last year's Q4 22 cent loss. Unfortunately, NETE guided lower for the current quarter and investors are bailing. At least two analysts are downgrading the stock, one of those to a "sell".

 
 
  Jeff Bailey   1/27/200,  12:14:29 PM
EchoStar (DISH) $37.85 +0.53% Link ... off session high of $38.56. Some talk that SBC may make an offer in low $50's.

 
 
  Linda Piazza   1/27/200,  12:13:13 PM
No double-bottom formation for the SOX. It dropped through the double-bottom level. The MACD has yet to catch up, however, still diverging from the lower lows seen on the price.

The GSO now tests its 30-minute 130-pma. Now that it's fallen through its 100-pma (and also minimally through the 130-pma), a move back up through the 100-pma would supposedly be a bullish signal. A further rollover here below the 130-pma would be a bearish one.

 
 
  James Brown   1/27/200,  12:12:46 PM
Yesterday trucking company Swift Transport Co (SWFT) was cut to a "sell" by A.G.Edwards on the belief that federal regulators might downgrade SWFT's safety rating, which would raise the company's insurance costs. The stock was hammered for a 12% loss on extremely high volume. Today we're seeing a dead cat bounce boosted by a rival analyst's upgrade to a "buy" for SWFT.

Shares remain under support/resistance at $20.00 and investors will be looking for SWFT to report earnings tonight after the close.

 
 
  Jeff Bailey   1/27/200,  12:11:50 PM
E-Loan (EELN) $3.88 +6.02% Link ... up on trading rumor that Wells Fargo (WFC) may be an interested buyer.

 
 
  Jim Brown   1/27/200,  12:09:46 PM
Nasdaq has now retraced all its gains from yesterday at -29. Any further drop could setup a cascade failue, especially if it trades under yesterday's 2115 lows.

 
 
  Linda Piazza   1/27/200,  12:07:23 PM
The OEX is now at middle-of-the-channels Keltner support at 569.68, also near the weekly R1 at 569.40 and the midline of yesterday's tall white candle. The OEX tested the weekly R2 today, falling below it. This current level should provide reasonably strong support for the OEX, so if it doesn't attempt at least a weak bounce, then we may be seeing the beginning of a stronger reversal.

 
 
  Jeff Bailey   1/27/200,  12:06:53 PM
EarthLink (ELNK) $9.98 -10.36 ... stock cut to "sell" from "hold" by Kaufman with $7 target.

 
 
  James Brown   1/27/200,  12:03:32 PM
Don't forget that we're closing current OI calls AMZN and STJ this afternoon to avoid any earnings disappointments or sell-the-news reactions.

 
 
  Linda Piazza   1/27/200,  12:02:05 PM
There went the NDX 30-minute 100/130-pma support, as I typed that last entry. The NDX didn't even pause long enough to form that "b" distribution pattern, but rather followed the SOX lead from this morning and just plunged through the averages.

 
 
  James Brown   1/27/200,  12:00:52 PM
Speculation in AT&T Wirless (AWE) continues. Last week the company officially opened the bidding war for an acquirer. The stock has added another 1.55% to breakout above the $11.00 level of resistance.

On another note AWE has become the top national wireless carrier in the country for customer complaints! (they get the most complaints)

 
 
  Linda Piazza   1/27/200,  12:00:31 PM
The GSO also attempts a bounce from its 30-minute 100-pma, although the 30-minute oscillators still look bearish. With the GSO and the SOX each at potential bounce levels, it's possible that the NDX could also be primed for a bounce. As I mentioned in my discussion of the SOX, though, it's possible that this potential bounce could resolve into a series of small-bodied candles that hug the support, with those candle forming the bulb portion of a potential "b" distribution pattern. That kind of pattern precedes a fall that is typically of the same depth as the stem of the "b" pattern. The $TRINQ keeps rising, although I don't watch it often enough to have mapped out bearish and bullish levels. Dare I say that this is another of those dreaded critical levels for both bulls and bears?

 
 
  Jim Brown   1/27/200,  11:59:37 AM
Reuters is reporting that the EU is going to rule against MSFT in the current antitrust problem.

 
 
  Linda Piazza   1/27/200,  11:55:50 AM
The SOX is trying to bounce now from a potential double-bottom area. So far, there is 30-minute bullish price/MACD divergence, with price hitting equal lows but MACD not yet doing so. That can be undone, of course, if MACD continues to fall, catching up to the lower price low. SOX bears should be watchful for a possible bounce, however, always remaining aware that this potential bounce could just resolve into a series of small-bodied candles that would fit the "b" distribution pattern. Before that double-bottom could be confirmed, the SOX would have to push its way back above this morning's gap and the 30-minute 100-pma. That might provide difficult.

 
 
  Jeff Bailey   1/27/200,  11:55:50 AM
You think I'm through with Xerox (X)? ....

Avery Dennison (NYSE:AVY) $60.75 +6.67 Link (bullish triangle alert) ... after reporting quarterly earnigns during market hours of $0.65 versus consensus of $0.59. Revenues rose 12.7% year-over-year to $1.231 billion versus $1.183 billion.

 
 
  James Brown   1/27/200,  11:53:07 AM
Investors are really pouring money into shares of Itron, Inc. (ITRI) this morning. The rally began yesterday but shares are up another 17% this morning. At least two analysts have upped the stock to a "buy" this morning but that seems to be the only catalyst I can find for today's rally. Earnings are expected on Feb. 5th.

 
 
  Jeff Bailey   1/27/200,  11:52:55 AM
Xerox Corp. (XRX) $15.14 +8.53% Link ... after reporting quarterly EPS of $0.19 (included $0.03 gain from reduced litigation reserves) versus consensus of $0.15. Revenues rose 1.1% to $4.292 billion versus the $4.182 billion consensus.

 
 
  Jane Fox   1/27/200,  11:51:49 AM
Putnam Investments, one of the more prominent names featured in the improper fund-share trading scandal, plans to limit the expense ratios on all of its funds to below the industry average in their appropriate Lipper peer group and offer enhanced information on fees, fund manager compensation and employee ownership of Putnam funds. My husbands 401(k) is currently being managed by Putnam looking to be replaced in May. This is one of the biggest DOE contracts in the country and should hurt Putnam.

 
 
  Linda Piazza   1/27/200,  11:50:42 AM
For those at work and not listening to CNBC, President Bush is on television, with reporters questioning him now about the intelligence that led him to believe in weapons of mass destruction in Iraq.

 
 
  Jeff Bailey   1/27/200,  11:50:33 AM
ViaSat (VSAT) $24.80 +2.26% Link ... after reporting quarterly EPS of $0.30 (included $0.14 gain, not comparable to consensus) versus consensus of $0.13. Revenues surged 46.5% to $71.8 million versus $65.88 million consensus.

 
 
  Linda Piazza   1/27/200,  11:48:48 AM
The VIX and VXN are near their highs of the day, but that's not saying much, is it, in the case of the VIX? It's at 14.98 as I type. The VXO is at 14.89.

 
 
  Jeff Bailey   1/27/200,  11:47:55 AM
Valero Energy (VLO) $54.20 +1.4% Link ... after reporting quarterly EPS of $1.05 versus consensus of $1.00. Revenues rose 17.1% year-over-year to $9.509 billion.

 
 
  Jeff Bailey   1/27/200,  11:46:18 AM
United Defense (UDI) $30.35 -9.8% Link ... after reporting quarterly EPS of $0.54 versus consensus of $0.50. Revenues rose 0.7% year-over-year to $524.7 million versus consensus of $489.94 million.

 
 
  Linda Piazza   1/27/200,  11:46:13 AM
Now the NDX begins the expected bounce attempt at its 30-minute 100-pma. Bears want to see the NDX fail to retrace more than 50% of this morning's decline, at about 1543.20, while bulls want to see a new high of the day.

 
 
  Jeff Bailey   1/27/200,  11:44:28 AM
Tweeter Home Ent. (TWTR) $10.33 +15.5% Link ... after reporting quarterly EPS of $0.21 versus consensus of $0.18. Revenues rose 2.2% year-over-year to $255.2 million versus consensus of $255.01 million.

 
 
  Linda Piazza   1/27/200,  11:43:35 AM
At the time I began typing this entry, the OEX was only a little more than a point away from midline Keltner channel support at 569.60, also near the OEX weekly R1 at 569.40(Q-charts provided number), for those who prefer to follow pivot analysis. The five-minute oscillators showed a possibility that it would try to rise short-term before testing that midline support, and that attempt began as I was typing. Resistance has thinned somewhat, but lies at the current 571.40 level, at 571.84, and then more strongly at 572.50.

 
 
  Jeff Bailey   1/27/200,  11:41:21 AM
Tenneco Auto (TEN) $9.20 +4.06% Link ... after reporting quarterly EPS of $0.06 versus consensus of $0.00. Reveneus rose 10.3% year-over-year to $933.00 million versus consensus of $892.00 million.

 
 
  Jeff Bailey   1/27/200,  11:39:20 AM
Smurfit-Stone Container (SSCC) $17.22 -4.33% Link ... after reporting quarterly EPS loss of $0.07 versus consensus of $-0.08. Revenues fell 0.4% to $1.913 billion versus $1.879 billion.

 
 
  Linda Piazza   1/27/200,  11:38:49 AM
As of a few moments ago, adv/dec ratios showed bearish tendencies on both exchanges, at 14:17 on the NYSE and 12:18 on the Nasdaq. Up volume was slightly ahead of down volume on the NYSE, however, with down volume about 1.3 times up volume on the Nasdaq. Total volume was 540 million on the NYSE and 727 million on the Nasdaq. New highs totaled 545, with new lows only 7.

 
 
  Linda Piazza   1/27/200,  11:31:18 AM
There's not much sign of a bounce attempt yet as the NDX hits its 30-minute 100-pma. Perhaps it will follow the example of the SOX this morning, simply plunging through that average, but it's too early to make that determination. A bounce attempt or a period of consolidation would be more likely. The TRINQ is rising and the advdec line continues to drop.

 
 
  Linda Piazza   1/27/200,  11:24:31 AM
Keltner resistance for the OEX now gathers from 571.83 to 572.56, suggesting that it will now be easier for the OEX to fall through toward midline channel support than to climb to a new high, at least over the short term.

 
 
  Linda Piazza   1/27/200,  11:22:02 AM
The QQQ's have just hit the descending trendline off the 1/20 high, a trendline that the QQQ's broke through yesterday. That trendline now crosses just above the 30-minute 100-pma for the QQQ's, at $38.17, and the 30-minute 21-pma, at $38.21. This is a potential bounce point for the QQQ's or at least a point at which it should slow its descent to digest the losses. Bears will want to see a lower high in the event of a bounce, while bulls want to see the opposite, of course.

 
 
  Linda Piazza   1/27/200,  11:14:58 AM
The NDX soon approaches its 30-minute 100/130-pma's. This should be a strong bounce level, but the SOX fell right though those averages this morning with little hesitation, plummeting toward the bottom of its 30-minute envelopes. Does that predict that the NDX (and GSO) could do the same? Perhaps, but I would expect at least some consolidation as that 1534.45 level was hit, if not that bounce attempt. If not, then we're seeing more weakness than the TRIN and TRINQ are yet hinting. The advdec line continues to drop, however.

 
 
  Jeff Bailey   1/27/200,  11:13:42 AM
11:00 Internals at this Link

 
 
  Jim Brown   1/27/200,  11:12:09 AM
In case you have not heard there was a massive new virus that hit the web last night. It comes as an attachment to an email and may come from an email address that you trust. All the virus companies have new upgrades this morning to combat it and Microsoft has issued an update to windows. I personally received nearly 200 copies of it yesterday when the first attack started. It appears we have not had a serious virus recently so readers simply clicked on the attachments with abandon. DON'T DO IT. Never click on an attachment unless you are expecting it. If in doubt, email the person back and ask them what it is. Link

 
 
  Linda Piazza   1/27/200,  11:10:57 AM
Late yesterday and early this morning, the GSO, the GSTI Software Index, climbed up to its upper 1.35% envelope on its 30-minute chart, as did the NDX. Like the NDX, the GSO turned down from that envelope, and now looks to be headed down for a retest of its 30-minute 100-pma, currently at 162.20, with the GSO at 162.79 as I type. That 100/130-pma area is one where I would expect a bounce attempt, if one is going to come.

 
 
  Gerald Melson   1/27/200,  11:06:38 AM
Does the market have legs today? Traders tend to view various aspects whether they be equities or indices for those quick day trading decisions. MER (Merrill Lynch) is one that is watched closely as a measurment for the brokerage sector. Traders want that sector along with the banks in their favor if they are going to be bullish, at least in the short run. Throw in the SOX as a strong barmometer as well. A negative in that index can spell trouble for the bulls. Right now the SOX and MER along with the banks are not doing well. Nothing is in stone folks, but these areas are worth observing for today's short term activity.

 
 
  Linda Piazza   1/27/200,  11:02:58 AM
The OEX should probably find support around this level, but now Keltner resistance gathers strongly overhead, hinting that the OEX will have difficulty rising very far, either.

 
 
  Linda Piazza   1/27/200,  11:00:31 AM
Yesterday, we watched the advdec line climbing all day after about 11:30, with that climb preceding the climb in the indices. Today, that line is flattening, just like the indices. If volume precedes price today, it's preceding it into a straight line into the horizon. Oops. Just saw another downtick begin. Maybe it will lead us somewhere after all?

 
 
  Linda Piazza   1/27/200,  10:56:11 AM
I mentioned earlier today that the NDX didn't often spend more than 3 or 4 thirty-minute candles lingering at the 1.35% upper envelope on my chart, but that when it did, it had usually just climbed above the 100/130-pma's, as it had late yesterday. I mentioned that it was currently on its third candle at that level and that stops should be set as appropriate. Here's what happened: Link

 
 
  Jeff Bailey   1/27/200,  10:44:12 AM
10:00 Internals at this Link

Yesterday's internals at this Link

 
 
  Linda Piazza   1/27/200,  10:42:23 AM
I'm watching now to see if the OEX will find support at this 572-572.30 level, indicated as support on the Keltner channels. After finding support here earlier this morning, it rose, but could not get above the previous high of the day, and so could not challenge that upside level hinted at by the 30- and 60-minute envelopes. Midline Keltner channel support now lies at 569.17, but OEX direction remains up in the air with TRIN bullish but the advdec line slightly bearish. It's not looking as if the OEX can fall far yet, maybe not even to that midline level.

 
 
  Linda Piazza   1/27/200,  10:37:45 AM
Late yesterday afternoon, the SOX broke back above its important 30-minute 100/130-pma's, a supposed bullish signal. This morning, however, it gapped down below them again, and now rests just above its 30-minute 21-pma at 530.05, with the SOX at 530.09 as I type. That's bearish action, but it could find support here for a bounce attempt.

 
 
  Jeff Bailey   1/27/200,  10:35:49 AM
SBC Communications (SBC) $26.35 -1.31% Link ... Reported quarterly EPS of $0.34 versus consensus of $0.34. Revenues fell 10.3% year-over-year to $10.067 billion.

 
 
  Linda Piazza   1/27/200,  10:35:22 AM
After breaking above a descending trendline off its 1/22 high yesterday, the TRAN today has fallen back below that trendline. It's currently retesting that trendline and has support below at the 30-minute 18/21-pma's near 3050.

 
 
  Jeff Bailey   1/27/200,  10:32:54 AM
Express Scripts (ESRX) $69.94 +0.4% Link ... "X gets the square" at $70.

 
 
  Linda Piazza   1/27/200,  10:29:59 AM
The OEX hasn't been able to make it above the previous high of the day yet. It keeps finding resistance at that high of the day, the weekly R2, and Keltner resistance at 573.33. First Keltner support shows up just underneath the current position from 572-572.30.

Yesterday was a big-range day. Since big-range days are sometimes followed by small-range days, there's the possibility that we're in for a tight range today.

 
 
  Jeff Bailey   1/27/200,  10:29:24 AM
Rockwell Collins (COL) $34.81 +8.24% Link ... Reported quarterly EPS of $0.36 versus consensus of $0.31. Revenues rose 11.9% year-over-year to $628.00 million versus consensus of 613.13 million.

There's that bar chart pattern again. Link

 
 
  Jeff Bailey   1/27/200,  10:27:37 AM
Rockwell Automation (ROK) $35.00 -0.19% Link ... Reported quarterly EPS of $0.28 versus consensus of $0.27. Revenues rose 3.3% year-over-year to $1.015 billion versus consensus of $1.019 billion.

 
 
  Jeff Bailey   1/27/200,  10:25:40 AM
Raytheon (RTN) $31.50 -2.23% Link ... Reported quarterly EPS of $0.52 versus consensus of $0.53. Revenues rose 9.4% year-over-year to $5.101 billion versus consensus of $4.920 billion.

 
 
  Jeff Bailey   1/27/200,  10:24:09 AM
RJ Reynolds (RJR) $57.65 -3.9% Link ... Reported quarterly EPS loss of $-1.62 (includes numerous items, not comparable to consensus) versus consensus of $1.05. Revenues fell 12.2% year-over-year to $1.234 billion versus consensus of $1.222 billion.

 
 
  Linda Piazza   1/27/200,  10:22:34 AM
The VIX hits its low of the day, at 14.81. The VXO is roughly in the middle of its day's range, however, and the VXN is rising as I type.

 
 
  Jeff Bailey   1/27/200,  10:21:09 AM
Quest Diagnostics (DGX) $81.80 +4.69% Link ... Reported quarterly EPS of $1.02 versus consensus of $0.99. Revenues rose 16.5% year-over-year to $1.204 billion versus consensus of $1.173 billion.

 
 
  Jeff Bailey   1/27/200,  10:19:03 AM
Public Service (PEG) $44.40 -0.55% Link ... Reported quarterly EPS of $0.69 versus consensus of $0.81.

 
 
  Linda Piazza   1/27/200,  10:15:07 AM
And now the Dow rejects its minimally confirmed H&S formation, moving above the shoulder level. This should set the Dow up for a zoom higher as this bearish formation is rejected, but as with the OEX, it first has to get past the previous high of the day. If that zoom up doesn't happen . . . but the TRIN is suggesting it will.

 
 
  Linda Piazza   1/27/200,  10:12:12 AM
The OEX found support at the confluence of Keltner channel lines near 571.90. It has not retraced even to midline support of its Keltner channels, aborting that test early, as I suspected it might, and may be preparing for a try at the upper 1.35% envelope surrounding its 30- and 60-minute 21-pma's, up near 575.40-575.60. First it has to get past the previous high of the day. The Keltner channels show it to be extended to the upside already.

 
 
  Jonathan Levinson   1/27/200,  10:11:49 AM
The put to call ratio opened at .67 for the 1st half hour, with the VXO up 3.84% to 14.87. It looks like an increase in put volume today, with the higher VXO indicating higher premium being paid for those puts.

 
 
  Jim Brown   1/27/200,  10:10:40 AM
TASR up +8.10 again today. This is definitely not a stock to short.

 
 
  Linda Piazza   1/27/200,  10:04:10 AM
The Dow did confirm its five-minute H&S, but only minimally, and it's already bouncing back above the neckline. There was some short-term weakness, then, but the next sign would be a trade down to the downside target, at about 10,650. And, as Jane says, we sure would want to see the TRIN higher before we believed in anything other than very short-term bearishness, a la "buy the dip" pullback.

 
 
  Jeff Bailey   1/27/200,  10:02:47 AM
PMI Group (PMI) $38.88 -1.6% Link ... Reported quarterly EPS of $0.30 versus consensus of $0.28. Revenues rose 9.7% year-over-year to $3.049 billion versus $3.021 billion consensus.

 
 
  Jeff Bailey   1/27/200,  10:00:38 AM
Pepsi Bottling Group (PBG) $26.36 +2.01% Link ... Reported quarterly EPS of $0.30 versus consensus of $0.28. Revenues rose 9.7% year-over-year to $3.049 billion versus consensus of $3.021 billion.

 
 
  Jonathan Levinson   1/27/200,  10:00:22 AM
10:00am U.S. JAN. CONSUMER CONFIDENCE 96.8 VS. 91.7 DEC.

 
 
  Jim Brown   1/27/200,  9:59:41 AM
Consumer Confidence est is 96.8, estimates were from 96.0 to 101.0. Average consensus was 98.5. Last month was 91.3.

 
 
  Jeff Bailey   1/27/200,  9:58:45 AM
New York Times (NYT) $48.12 +2.4% Link ... Reported quarterly EPS of $0.73 versus consensus of $0.70. Revenues rose 5% year-over-year to $882.3 million versus consensus of $874.71 million.

 
 
  Jonathan Levinson   1/27/200,  9:57:12 AM
A 3.5B overnight repo replaces the 6.75B expiring this morning for a net drain of 3.25B.

 
 
  Linda Piazza   1/27/200,  9:56:58 AM
The Dow still presents the possibility of a H&S formation being confirmed on its five-minute chart, and I'm still watching just to help measure bullish/bearish sentiment, not as a trading tool. I expect that we'll see some volatility surrounding the Consumer Confidence number, so I'm not sure how valid it will be to continue to watch this formation beyond the next few moments. So far, though, the Dow looks slightly weaker on this measure than the NDX, which rejected a similar formation, but which did not reach a new high.

 
 
  Jeff Bailey   1/27/200,  9:56:50 AM
NCR Corp. (NCR) $40.38 -1.51% Link ... Reported quarterly EPS of $0.84 versus consensus of $0.80. Revenues rose 3.9% year-over-year to $1.643 billion versus consensus of $1.600 billion.

 
 
  Jeff Bailey   1/27/200,  9:55:10 AM
Mesa Air (MESA) $11.37 +2.34% Link ... Reported quarterly EPS of $0.22 versus consensus of $0.20. Revenues jumped 40.9% year-over-year to $187.55 million versus consensus of $193.49 million.

 
 
  Linda Piazza   1/27/200,  9:53:31 AM
The NDX has risen all the way to the top 1.35% envelope surrounding its 30-minute 21-pma. The NDX doesn't often climb this envelope for more than three or four 30-minute candles, and it's now forming its third at that boundary. However, the times that it does climb the envelope tend to be when it's just pushed back above the 30-minute 100-pma, which it did late yesterday afternoon. So, it's a distinct possibility that it could continue to climb that envelope, but traders should be aware that this is going against its usual tendency to move down after lingering at that boundary through three or four 30-minute candles. Watch your stops.

 
 
  Jeff Bailey   1/27/200,  9:52:47 AM
Merck (MRK) $47.60 +0.88% Link ... Reported quarterly EPS of $0.62 versus consensus of $0.62. Revenues fell 7.1% year-over-year to $5.627 billion versus consensus of $5.519 billion.

 
 
  Jim Brown   1/27/200,  9:51:59 AM
Consumer Confidence has a wide range of estimates this morning from 96.0 to 101.0. It is due out in 8 min. Last month was 91.3.

 
 
  Jeff Bailey   1/27/200,  9:50:44 AM
McGraw-Hill (MHP) $73.48 +3.15% Link ... Reported quarterly EPS of $0.82 versus consensus of $0.75. Revenues rose 7.1% year-over-year to $1.222 billion versus consensus $1.201 billion.

 
 
  Jeff Bailey   1/27/200,  9:48:47 AM
Marathon Oil (MRO) $34.42 -0.4% Link ... Reported quarterly EPS of $0.59 versus consensus of $0.67. (may not be comparable to consensus)

 
 
  Linda Piazza   1/27/200,  9:47:44 AM
The NDX has already risen past its possible right-shoulder level, rejecting the formation already. That gives us information we need to know: on the short-term at least, bullishness remains strong enough to reject a possible bearish formation.

 
 
  Jeff Bailey   1/27/200,  9:46:49 AM
Lockheed Martin (LMT) $51.60 Link ... Reported quarterly EPS of $0.75 versus consensus of $0.76. Revenues rose 15.4% year-over-year to $8.978 billion versus consensus of $8.836 billion.

 
 
  Linda Piazza   1/27/200,  9:45:40 AM
I hesitate to mention it, but some of the indices show a possibility of a H&S on their five-minute charts, but without bearish MACD divergence as the heads were formed. The Dow is one of those indices, with the neckline at the 10,675 level, the shoulder level at 10,696, and the head at yesterday's high. The Dow could be rising now to form a right shoulder. Lately, we usually see the right-shoulder rise and rise and rise, with the formation being rejected. I mention this one only so that we can watch what happens, to measure the remaining bullish fervor. This wouldn't give us much of a downside target to trade, but is useful to watch only for this reason.

 
 
  Jeff Bailey   1/27/200,  9:45:09 AM
Ingersoll-Rand (IR) $70.15 -1.84% Link ... Reported quarterly EPS of $1.11 versus consensus of $1.05. Revenues rose 9.8% year-over-year to $2.665 billion versus consensus of $2.583 billion.

 
 
  Jeff Bailey   1/27/200,  9:43:20 AM
Imation (IMN) $37.60 Link ... reported quarterly EPS of $0.55 versus consensus of $0.50. Revenues rose 23.4% to $334.4 million versus consensus of $301.93 million.

 
 
  Jeff Bailey   1/27/200,  9:41:15 AM
EarthLink (ELNK) $10.56 -4.84% Link ... Reported quarterly EPS of $0.12, which was 3 cents better than consensus. Revenues up 0.2% to $348.6 million versus consensus of $349.35 million.

 
 
  Linda Piazza   1/27/200,  9:40:37 AM
Thanks, Jeff, for your earlier update on the OEX price when my charting service was not getting correct feed. It seems to be tracking the OEX price fairly well now, but traders should be careful if a price appears to be sitting in one spot too long. It may not be!

 
 
  Linda Piazza   1/27/200,  9:37:51 AM
Because I was not getting correct feed on my charting service, I cannot provide the correct first five-minute range for the OEX this morning, for the benefit of those who like to use Jeff's 5MRT system but who do not charting services that allow them to determine the first five-minute range.

 
 
  Jeff Bailey   1/27/200,  9:37:34 AM
S&P 100 Index (OEX.X) 572.45 -0.17% ...

 
 
  Jeff Bailey   1/27/200,  9:36:04 AM
Cummins (CMI) $52.75 -0.18% Link ... Reported quarterly EPS of $1.07, which was 9 cents better than consensus. Revenues rose 22.8% year-over-year to $1.736 billion.

 
 
  Linda Piazza   1/27/200,  9:36:00 AM
Careful, OEX traders. I'm not getting correct feed on my charting service. You may not be, either.

 
 
  Jeff Bailey   1/27/200,  9:34:06 AM
Caterpillar (CAT) $85.51 +0.58% Link ... Reported quarterly EPS of $0.97, which was 3 cents above consensus. Revenues rose 20.2% to $6.465 billion versus consensus of $5.488 billion.

 
 
  Linda Piazza   1/27/200,  9:34:00 AM
The OEX is turning down inside the nested Keltner channels, but there's gathering support just below the current level, all the way down to 571.16, where it's fairly strong.

 
 
  Jim Brown   1/27/200,  9:33:56 AM
Dow component CAT still not open. Only 10 components trading higher.

 
 
  Jim Brown   1/27/200,  9:31:17 AM
SLAB is trading up over +9 points, NVLS is trading way down.

 
 
  Jeff Bailey   1/27/200,  9:30:30 AM
BMC Software (BMC) $21.54 Link ... unchanged after reporting quarterly EPS of $0.19, which was 2 cents better than consensus. Revenues rose 7.2% to $374.8 million versus consensus of $359.13 million.

 
 
  Jeff Bailey   1/27/200,  9:28:24 AM
Beazer Homes (BZH) $96.30 Link ... higher at $97.85 after reporting quarterly EPS of $3.41, which was better than consensus of $3.17. Revenues rose 15.7% to $810.1 million versus consensus of $791.58 million.

 
 
  Jeff Bailey   1/27/200,  9:22:39 AM
09:00 Update posted at this Link

 
 
  Linda Piazza   1/27/200,  9:12:59 AM
Last week's OEX candle was a doji, but yesterday's bullish daily OEX candle erased the possibility that the OEX would confirm a bearish evening-star pattern on the weekly chart, at least a classic one. It could always be possible that another type of reversal signal could be produced, but for now, yesterday's action was bullish. On the daily chart, the candlestick pattern is most similar to a bullish pattern that indicates that an attempt to reverse the upward trend failed, indicating that the upward trend should continue. As we always suggest with all such signals, whether bullish or bearish, price action is the final arbiter, however.

What about on shorter-term charts? The OEX ended the day extended beyond its nested Keltner channels, perhaps suggesting that it needs to retreat toward, but perhaps not all the way to, either midline support at 568.18 or bottom support at 565.22. If the bullish fervor continues, the retreat may not take the OEX all the way back, and it's possible that it might not begin immediately, either, so that those support levels could be rising as the OEX climbs outside the channel for a while. The 30- and 60-minute 1.35% envelopes surrounding the 21-pma's suggest upside at least to 574.92-575.12, although the OEX can and does sometimes climb those upper channel lines. Taken together then, the charts suggest a possible retreat this morning, with the possibility that it will be aborted early, and then a climb toward the 574-575 level, with the possibility of a higher climb. If the pent-up bullish fervor from yesterday continues strongly this morning, however, it's possible that the OEX could first rise toward 574-575 ahead of the Consumer Confidence number, then the short-term overbought pressure could send it lower to test the midline or bottom support of the Keltner channels. Beyond that, we just have to see what occurs. The OEX is moving into a long-term congestion band that should slow its upward progress, but I've taken to calling these levels hesitation points rather than resistance levels.

 
 
  Jonathan Levinson   1/27/200,  8:13:43 AM
We await Consumer Confidence for January, est. 98.5 but with some estimates ranging as high as 105. The number is due to be released at 10AM.

 
 
  Linda Piazza   1/27/200,  7:23:35 AM
Good morning. The Nikkei opened above 11,000 in Tuesday's trading and treaded water through the morning session. The Nikkei slid lower in the afternoon session, closing near its low of the day, down 44.57 points or 0.41%, at 10,928.03. The downturn occurred despite an upgraded assessment of the economy by the Ministry of Finance.

Texas Instruments' upped estimates, Canon's and Fuji's intentions to raise investment spending in the near term, Toyota's plan to increase capacity at a plant in Turkey, and hopes for good earnings from Japanese companies reporting this week prompted the higher open, according to some sources. In the morning session, tech stocks traded generally higher, joined by banking stocks rebounding from yesterday's losses, but both groups pared their gains by the end of the trading day. In the morning, Finance Minister Tanigaki denied that the government had intended for its intervention efforts to keep the yen at a certain level, but instead claimed that they were meant to pace the yen's rise against the dollar. With EU officials expressing concern about intervention efforts and with a G7 meeting of finance ministers scheduled for next week in Florida, some expect the Japanese government to curtail yen sales, at least in the near-term.

In the afternoon, recent speculation about special inspections of some banks was confirmed when the Financial Services Minister announced that special inspections of major banks would begin this fiscal year. In addition to that news, Fujitsu announced that deteriorating business performance would force it to lower management salaries. Fujitsu, Sony, and Tokyo Electron were some of the tech stocks that ended the day lower, while Advantest retained small gains ahead of its after-the-bell earnings report, a report that was characterized as upbeat. Toyota ended the day lower, as did Honda.

Other Asian bourses turned in a mixed performance as some bourses were hit by worries over the economic impact of avian flu. Many airliners in the region declined. However, the Taiwan Weighted gained an impressive 1.83% as chip stocks climbed. South Korea's Kospi fell 0.69%. Singapore's Straits Times climbed 0.24% and Hong Kong's Hang Seng gained 0.25%. China's Shanghai Composite was closed, according to my quote source.

Most European bourses trade higher this morning as the Ifo Institute announced that January's West German business climate index rose to 97.4 from December's 96.9. The number beat estimates. Cyclical stocks gained. While tech stocks trimmed their gains in Japan, European trading followed Taiwan's example, with many chip-related stocks gaining. Telecom stocks also gained after a Deutsche Telekom subsidiary and the French telecom regulator ART both announced gains in subscribers, with the Deutsche Telekom subsidiary claiming an addition of 7.1 million subscribers in 2003 and ART saying France added more than 3 million mobile phone subscriptions in the same period. A Deutsche Bank downgrade of German drugmaker Schering from hold to sell sent that stock lower. The stock had been trading higher in previous days, along with many drugmakers, on hopes that it would be an attractive target for acquisition, but Deutsche Bank derided that possibility. Aventis, the subject of a hostile takeover by Sanofi Synthelabo, continued its gains, and Sanofi Synthelabo recovered some of its losses from yesterday.

As of this writing, the FTSE 100 has gained 32.30 points or 0.73%, to trade at 4477.80. The CAC 40 has gained 47.08 points or 1.28%, to trade at 3722.80. The DAX has gained 41.95 points or 1.02%, to trade at 4170.63.

 
 
  OI Technical Staff   1/26/200,  7:52:57 PM
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