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  Linda Piazza   5/10/200,  4:03:09 PM
As I've been reviewing stock charts over the last hour, I notice many with doji at the bottom of steep declines, noting these possible reversal signals. I note ORCL's steadiness, noting its possible double-bottom-in-the-making. Yet I also note many stocks teetering on the edge of confirming H&S's on their daily and weekly charts. That gives a mixed-up prognosis for the markets, which would fit just fine with the OEX's tendency, at least, to consolidate near the weekly mid-channel S/R level for at least two-three weeks, with that level now at 528.44. Remember that consolidation on a weekly basis might not mean the same as on an intraday basis, because it can encompass a bigger range and still have those weekly candles be sitting fairly close to a consolidation zone. On the weekly Keltner chart, for example, weekly resistance at 547.13 would constitute only a small movement on a Keltner basis, with a downturn there being a downturn at next appreciable resistance.

  Linda Piazza   5/10/200,  3:30:26 PM
The BIX bounced midday, but hasn't been able to maintain all of its gains. It appears to e trying to stabilize again, printing a higher two-minute high and then a higher two-minute low, but that higher low is in jeopardy as I type.

  Jeff Bailey   5/10/200,  3:16:27 PM
Sell Prog. Premium SPX 1,083.75

First program premium since a sell at 11:15-11:20 AM EDT

  Jeff Bailey   5/10/200,  3:09:23 PM
03:00 Internals at this Link

  Linda Piazza   5/10/200,  2:54:24 PM
Is this a higher low in the making on the OEX? It could be, as the five-minute Keltner channels are showing tentative bullish divergence as this low is hit and the OEX paints a white candle. However, that divergence is tentative only and won't be confirmed until a push through 533.98, the last five-minute high, and then a confirming push through 534.15 or so, the 50% retracement of the flagpole drop from Friday's last five-minute high to this morning's low and--more importantly--the approximate location of the 200-ema, just above the 200-dma. I wouldn't be betting the farm on any long positions just now, however, or on that higher low being confirmed. Could be, but that's just too dangerous a bet right now.

  Jeff Bailey   5/10/200,  2:44:49 PM
Semiconductor Index (SOX.X) 456.88 -0.02% .... rather notable little decline last 5-minutes.

QQQ $34.57 -1.1% after matching morning high of $34.90 earlier this afternoon.

  Linda Piazza   5/10/200,  2:17:52 PM
Checking to see how the drugstores are doing today, I see mixed results. WMT draws that bullish engulfing candle on its daily chart, gaining more than 2% over Friday's close. CVS posts a small gain. WAG trades just either side of the flat-line level, a cent or so below it as I type. RAD heads lower. There's no consistency as yet, except perhaps that losses, as they show up, don't appear to be big.

  Linda Piazza   5/10/200,  2:07:23 PM
As of a few minutes ago, total volume was 1.24 billion on the NYSE and 1.27 billion on the Nasdaq. Declining issues were 5.67 times advancing ones on the NYSE and 2.93 times advancing ones on the Nasdaq. Down volume was 5.2 times up volume on the NYSE and 3.8 times up volume on the Nasdaq. These are bearish patterns, but not capitulation-type patterns, at least according to what we've seen in the past. However, new lows ranked 786 to 5 new highs on the NYSE, and that is a bit of overkill.

  Linda Piazza   5/10/200,  1:40:58 PM
WMT has turned positive, its daily candle so far engulfing Friday's candle, at least as I type. It's a long way from the end of the day, however, and anything can happen.

  Linda Piazza   5/10/200,  1:26:27 PM
Is the TRAN turning down to test its March low or is the current bounce setting up the potential for a higher low? That may well depend on the current test of the 200-dma that's going on this afternoon. On Friday, the TRAN broke through the neckline of a somewhat misshapen H&S formation, with a downside target near the March low, and it looked for a while this morning as if it was going to fulfill that downside target today. After punching through 2800, however, the TRAN hit a former descending trendline off the February and early March highs and bounced from that trendline. Still, whether the TRAN is currently seeing an oversold bounce or something more solid remains to be seen. We could have expected a bounce from that level, and maybe a higher one to retest that broken neckline area near 2885, but until the TRAN is above that neckline, perhaps any bounces should remain suspect.

  Jeff Bailey   5/10/200,  1:19:54 PM
Disk Drive Index (DDX.X) 105.77 +0.03% .... edges into positive territory.

  Linda Piazza   5/10/200,  1:13:51 PM
The Dow has bounced back above its 200-dma, as has the GSO, the GSTI Software Index. The SPX never pierced its 200-dma. The Russell 2000 is close to challenging its 200-dma as I type, as is the OEX. The SOX and NDX trade below that average. The BIX and BKX still are below that average.

  Jeff Bailey   5/10/200,  1:05:24 PM
Strength Gold Bugs ($HUI.X) 174.40 +3.37%, Retail HOLDRs (RTH) 88.77 +1.08%, Semiconductor Index (SOX.X) 459.66 +0.57%, Computer Technology (XCI.X) 667.01 +0.04% just turning green.

Weakness Transports (TRAN) 2,822 -3.10%, Health Providers (RXH.X) 365.75 -2.16%, Oil (OIX.X) 336.13 -2.21% and Natural Gas (XNG.X) 223 -2.15%.

  Linda Piazza   5/10/200,  1:01:48 PM
As the OEX rises, those who might have chosen to enter countertrend longs should pay special attention to both the 200-sma and 200-ema, with those averages at 533.67 and 434.12, respectively, with the OEX already challenging the -sma. Also, the bottom of that broadening formation is near today's high, with the mid-channel five-minute Keltner resistance at 536.53, so that 536.50-537.35 appear to be strongest resistance after the 200-dma's.

  Jeff Bailey   5/10/200,  12:57:53 PM
TRIN ... good afternnon Jeff, i am very confused with the trin readings. withe all the selling i would expect it to be high today. like jane said in mm it is around .75. also the 5 day trin is at .80, very low for all the selling we've had the past few days. the 10 and 21 days are also aonly around 1.0. IF,IF,IF these nymbers are correct, then it seems to be saying overbought and not oversold????? i would like to go long when 5,10 and 21 day trin is 1.50 or higher. i am sure many people have the same question. if possible could u elaborate a little. thanks mike

I'm not of much help with the TRIN as it is not an indicator I follow (not that I shouldn't, but I don't follow it). Maybe others can comment on Mike's thoughts.

My only input would be that if an indicator a trader rely's heavily on is saying "don't buy," then don't, and wait until it does, but PRICE action should be the main focus.

  Jeff Bailey   5/10/200,  12:41:43 PM
QQQ $34.65 -0.91% ... with new WEEKLY Pivot retracement at this Link

SOX.X 458.12 +0.24% trading just under its WEEKLY 38.2% retracement (459) here.

  Linda Piazza   5/10/200,  12:38:21 PM
The OEX tests a first level of resistance--historical, Fib, and Keltner, near 532.88.

  Jeff Bailey   5/10/200,  12:34:44 PM
Swing trade long alert ... for QQQ $34.75 -0.47% here, stop $34.58 to begin, target WEEKLY R1 $35.52.

  Jeff Bailey   5/10/200,  12:33:24 PM
Bearish Day/Swing trade stop alert for Semiconductor HOLDRs (SMH) $36.90 +1.18% ...

  Jeff Bailey   5/10/200,  12:29:26 PM
Dow Industrials (INDU) 9,975.61 -1.39% .... with WEEKLY/MONTHLY retracement. Session low pegged its WEEKLY S2, and I'd be looking for a bounce back near 10,300 by week's end. Link

Some weakness in U.S. Dollar Index (dx00y) 91.80 +0.73% might be helpful, but as Treasury Secretary Snow has been saying for months that U.S. supports strong dollar policy, some have been citing stronger dollar as near-term negative for those U.S.-based exporters.

Still, I (Jeff Bailey) think similar to past dollar advance, won't be overly harmful longer-term.

  Linda Piazza   5/10/200,  12:16:18 PM
The OEX came within $0.31 of the weekly mid-channel Keltner support this morning, with that support at 528.43 and the OEX low at 528.74. I would have expected a bounce there, and wouldn't be surprised to see one to two weeks of consolidation near that mid-channel support. Of course "near" is relative when we're talking about weekly candles, because next weekly resistance above 528.40-528.90 is at 532.21 and then 547. Weekly consolidation could produce some profitable plays in the next two to three weeks going either direction, but the OEX would have to tug free of that 532 resistance first.

A more than temporary fall below weekly mid-channel Keltner support, however, doesn't see next weekly Keltner support until 492.05. Remember that these lines are dynamic and also that they tend to have a kind of magnetism so that that the OEX sometimes overshoots them a little and then gets caught or tugged back inside the lines.

  Jeff Bailey   5/10/200,  12:06:50 PM
12:00 Internals at this Link

  Linda Piazza   5/10/200,  11:58:58 AM
As the OEX fell today, it finally fell through the support of the broadening formation on its daily chart. It can be difficult to identify the breakdown levels on these. After all, they're broadening, so you expect to see lower lows. As some may recall, when this one first began forming, I acknowledged that it could be a bull flag pullback, but I was always concerned about that broadening shape as that's not a typical measured distribution pattern of the type we see in bull flags.

  Linda Piazza   5/10/200,  11:51:29 AM
OI Put Play WHR: We'll also be reevaluating WHR's stop today, depending on how the rest of the day transpires. Since triggering the play late last week, WHR has dropped away from the neckline of its H&S formation, with that neckline possibly at about $64.70 currently. It's possible to draw a different and higher neckline, too, but since WHR's big drop began as this one was violated, with volume rising as it did, this seems a valid one. $62.80 had looked like support on the weekly chart, but WHR washed right through that. One caution to our downside target of $58.01, set higher than the downside target for the H&S, is that the 200-week moving average has now moved up to $59.51, with that average perhaps providing support as WHR declines toward it. The 100-week moving average is now at $60.55, and conservative investors might consider taking at least partial profits if those weekly moving averages are tested today, following WHR lower with personal stops.

  Linda Piazza   5/10/200,  11:42:51 AM
OI Put Play LTR: This stock has just refused to drop, but instead has been creeping slowly downward. Today, it's clinging to the 100-dma at $56.44, with the stock currently at $56.39. Perhaps it will take a drop below this last supporting moving average ahead of the 200-dma, way down at $49.58, to get any downward momentum started. Those in the play should be watching options prices, too, making decisions about exits that are suitable to their own account-management practices. I wasn't watching LTR as the play was chosen, so am not sure of options prices at that time, but it's reasonable also to set stops according to your options prices. Some elect to exit when an option has lost 1/3-1/2 of its price, for example. Make decisions that are reasonable for your trading style.

  Linda Piazza   5/10/200,  11:35:39 AM
Reader Question: thanks for your post on AMZN. It took a while but finally .... I note also that in addition to what you say, the volume picked up TH, FR and today in a big way (already 3+ million). What kind of bounce would you expect at 40?

Response: I'm not normally a part of the pick team, but am substituting, and thought it might be helpful to cover some of these put plays as the markets dive today. I'm not expecting a bounce at $40 as much as I'm wary of it on behalf of traders in profitable put plays. At this time, I would consider any bounce to be a countertrend bounce. As you mention, some do play these countertrend bounces, but I'm not usually one of them because the rollover levels can be difficult to identify and breakdowns can come rapidly. Here are a couple of things I note about AMZN on its weekly chart: Link

  Linda Piazza   5/10/200,  11:19:37 AM
OI Put Play BZH: Maybe we should have set the profit target for this one lower? This morning, BZH hit the $90.30 profit target set when the play was first listed, so we'll be closing the play tonight. We suggest caution for those in the play who have not stopped out yet, as BZH currently challenges $90.00, a potential bounce point. A swing low of $88.26 from January might be a next level of support if $90.00 is breached other than on a temporary basis, with weekly support ranging down to $87.00. If inclined to stay in the play this morning, follow BZH lower with your stops, by all means not letting a profitable play become an unprofitable one. While it's possible that BZH could just dive all day, we set the stop here originally because we thought it might be a point from which it could bounce up to retest a violated trendline now near $97.50.

  Linda Piazza   5/10/200,  11:10:00 AM
OI Put Play AMZN: Since dropping out of its latest consolidation pattern late last week, AMZN has fallen several points, meaning play participants have profits under their belts. Today, it has reached a low of $40.77, dipping into weekly support and toward the likely round-number support offered at $40.00. In addition, AMZN approaches the March low at $39.15. We're still targeting the trendline of lower lows for our official exit, but conservative traders could elect to take partial profits in the $39-40.80 level. This afternoon, the pick team will be looking at the stop, deciding whether it needs to be changed, but as always we encourage traders to set stops that are appropriate to their own trading styles. Some could key their stops to the 50-dma, now at $44.20, setting a personal stop just above that level. The official stop is at $45.25.

  Jeff Bailey   5/10/200,  11:07:34 AM
11:00 Internals at this Link

  Linda Piazza   5/10/200,  10:46:05 AM
Weekly OEX mid-channel Keltner support, here we come. That support is at 528.44 as I type, with other weekly Keltner support at 529.51, so the OEX descent could slow or stop anywhere near there. Bears, be careful here. Have an exit plan in mind. Will you set a definite profit target? Begin exiting profitable positions in stages? Just follow the OEX down with your stops and let market action make your decision? Know what you intend and follow your plan.

  Jeff Bailey   5/10/200,  10:44:27 AM
Sector Bullish % readings have Precious Metals (BPPREC) and Semiconductor (BPSEMI) most "oversold" and weakest at respective 24% (looking for turn up above 30% at "bull alert".

then Internet (BPINET) "bear confirmed" at 32%, then Computer (BPCOMP) "bear confirmed" at 36%, the Wall Street (BPWALL) "bear confirmed" at 38% along with Software (BPSOFT) "bear confirmed" at 42%.

  Linda Piazza   5/10/200,  10:42:16 AM
Francis' 10:24 post (on the Futures side of the Monitor) reminds me to mention to our newer readers that the first hour of trading is often termed "amateur hour." Francis' first successful trade of the day proves that it's possible for experienced trades to profit during that first hour--congratulations on that trade, Francis--but it's a tricky time period for many traders. Some of those making gains in that first hour of trading are making them at the expense of newer traders--those "amateurs." We have elevated volatility during that time period, elevating options prices, for example, so that it's sometimes difficult to jump into an options play and profit, even if the market goes your direction. We have that typical first retracement of the day, occurring sometime around 9:40-10:10 or so, with that time period stopping out some who entered at the open, and enticing others into plays that are sometimes reversed. Be aware of some of those dynamics as you make decisions each day about entering or not entering near the open. Occasionally an entry at the open is the only entry that's offered all day, so it's not a situation in which you would never want to enter near the open, but it certainly should not be done on an options play without knowing the risks you're taking.

  Jeff Bailey   5/10/200,  10:40:52 AM
Semiconductor Index (SOX.X) with new WEEKLY Pivot retracement and thoughts as it relates to sector bullish % at this Link

Thinking near-term bounce back near 480, but then final decline to 420 level, when bullish % then well oversold below 30%. Then next leg of bull market unfolds as investors/traders get used to thought of Fed tightening as economy continues to grow.

  Jonathan Levinson   5/10/200,  10:26:36 AM
In the excitement I forgot to check up on the Fed. 6B in overnight repos has been added with no expiries for a net addition in that amount- should be supportive of either bonds, equities or both.

  Jeff Bailey   5/10/200,  10:22:50 AM
S&P 500 Index (SPX.X) with WEEKLY/MONTHLY at this Link

  Linda Piazza   5/10/200,  10:22:30 AM
So much for the possible bear-flag rise into resistance on the OEX. This is why I've cautioned against trying to play these countertrend bounces on the OEX today or trying to catch the bottom. Unfortunately, we haven't had a big enough bounce to get a rollover entry for those who want new bearish entries, either, especially with the OEX closing in on strongest support between 527-530.

  Linda Piazza   5/10/200,  10:16:53 AM
The BIX fell below 330 support last week. There's also some light historical weekly support in its current 325.51 level, but the strongest support on a weekly basis is down near 318-320. That also coincides with the downside target of the H&S I've been showing on the BIX chart for several weeks now, with that target at about 318.55, depending on how the neckline is drawn.

  Jeff Bailey   5/10/200,  10:09:56 AM
Russell 2000 Index ($RUT.X) 540.50 -1.46% ... technicals ... below their rising 200-day SMA 544.55.

  Linda Piazza   5/10/200,  10:08:01 AM
On the OEX five-minute chart, it now looks as if the OEX may be trying to form a bear flag with the typical back-and-forth action seen on that formation. It's not certain it can muster the strength even to do that. If it does, we should continue watching that 536 level, the 50% retracement of the flagpole plunge that immediately preceded its formation, as a marker for whether the OEX is showing more strength than expected or is rolling over beneath it.

  Jeff Bailey   5/10/200,  10:06:49 AM
10:00 Internals at this Link

Friday's Internals at this Link

  Linda Piazza   5/10/200,  10:03:56 AM
We got the OEX rollover beneath 536, as expected, with that rollover coming beneath the 200-dma. Now bears want to see a new low. (Happened as I typed, but the OEX is already trying to bounce.) Remember, though, that the OEX is moving into a historical support zone and into weekly mid-channel Keltner support, currently at 528.46, so it's possible that the descent could slow as that level is approached or even slightly before. The OEX does tend to consolidate along that weekly mid-channel Keltner level, but we're talking about on a weekly basis, and that doesn't mean that the OEX won't move away from it on an intra-week basis. It could bounce then, but I'd be careful about playing the long-side, thinking you've caught the bottom. Be ready to bail at any time.

  Jeff Bailey   5/10/200,  9:55:09 AM
S&P 500 Index (SPX.X) 1,091.95 -0.58% .... from prior Index Trader Wrap, those holding May expiration puts initiated at 1,122 or higher can look to close out, or tighten a stop to SPX 1,095.

Getting some volatility with VIX.X 19.11 +5.4%.

  Linda Piazza   5/10/200,  9:50:00 AM
A 50% retracement of the OEX plunge from the last five-minute high lies at about 535.94, near gathering Keltner resistance. If the first bounce is just an oversold bounce in the first retracement period of the day, the OEX should have difficulty moving above that level. It should roll over somewhere beneath it, although it's possible that it could overshoot it a little.

  Jeff Bailey   5/10/200,  9:48:53 AM
Day trade update alert ... for Semiconductor HOLDRs (SMH) $36.67 +0.60% .... for those that held short over the weekend, I'm going to want to keep stop at $36.90, but look to close out should SMH trade its WEEKLY Pivot ($36.04) this morning.

Session low came just after the open at $36.15.

  Linda Piazza   5/10/200,  9:42:50 AM
The OEX is so short-term oversold on a Keltner-chart basis that we should see a bounce over the next few minutes, up to 534.28, 535.94, or even the 536.50-536.80 levels. For now, that would be presumed to be a countertrend bounce, however.

  Linda Piazza   5/10/200,  9:40:13 AM
The Nasdaq is below 1900 as I type, the Dow getting ever closer to 10,000, and the OEX currently trades below its 200-dma. We're at that first level from which we might have expected a bounce before the overnight weakness in foreign markets. Bears, be careful, following the OEX lower with your stops, but those hoping to play a bounce should be even more careful, remaining aware that these levels are being hit at the same time that we normally see the first retracement of the day anyway. On a down opening, it's normal to see a bounce attempt that begins a few minutes from now, for example.

During the first five minutes of trade, the OEX spanned a range from 537.35 to 533.37.

  Jeff Bailey   5/10/200,  9:33:58 AM
SOX / NDX WEEKLY Pivot history at this Link

With SOX.X showing some relative strength (against the NDX.X) within its WEEKLY Pivot last week, I want to be alert for some strength above its WEEKLY Pivot early this week. Was looking at prior trade, where SOX.X seemed to be a bit of a "leading indicator" for NDX/QQQ strength. I used NDX instead of QQQ as both the NDX/SOX closed at the same time (04:00 PM EDT).

I worked on this a little bit this weekend as it relates to the 04/25/04 Ask the Analyst work we did. Link

  Jeff Bailey   5/10/200,  9:20:19 AM
09:00 Update at this Link

  Linda Piazza   5/10/200,  8:47:49 AM
Anyone who reads my OEX-related posts during the week and then reads Leigh Stevens' weekend reports might often notice a similarity in our outlooks for the OEX. In fact, if I turn to Leigh's column on the weekend and find a different viewpoint, I double-check my own, thinking something must be wrong. For the last two weeks, Leigh and I have both thought it was likely that the OEX would likely test the 532-534 level, with historical and other levels of resistance matching up with the 200-dma, also in that level. In addition, the 15-minute Keltner channels now show bottom support in that level. Heading into this morning, I would have also suggested that we should see at least a reflexive bounce at this level. With the behavior of Asian and European markets, it's no longer quite so certain that we'll see a reflexive bounce in that area. The Nikkei's fall was attended by the largest volume seen in some time, according to a CNBC report this morning.

Several factors still point to the need for such a bounce, but if the markets have begun a downtrend, we can no longer trust some of these oversold measures. Not since last Tuesday has the OEX tested top channel Keltner resistance on the 5-minute chart, and it's getting about time for another test of the mid-channel if not the upper-channel resistance. In addition, Friday the OEX ended at bottom support of the broadening formation that it's been in since early April. Another reason is that the OEX ended Friday squarely on a 19.1% retracement of the rally off the July 2002 low and at a historical support level, but it's likely that possible support level will fail this morning. Although it's difficult to be sure ahead of the market open, I'd be careful about looking for a bottom. Today might be a day for those of you already in bearish positions to follow your stops lower. What about new bearish entries? That's more difficult without a bounce and rollover entry, one that I'm not sure we'll get.

Where will it all stop? There's the 200-dma, of course. Another possibility is the OEX 527-530 level, the level which marks the weekly mid-channel Keltner support. In fact, perhaps it's time to repost a chart I first posted in early February, complete with my original annotations. The more I work with Keltner channels, the more I depend on them, and this chart was showing me back in early February that dangerous bearish divergence was developing, suggesting that the OEX would pull back toward mid-channel support if not the support currently near 491. Here's the chart, complete with the original annotations: Link If the 200-dma does not produce that bounce, perhaps the mid-channel support from 527-530 will. A reflexive bounce from the 200-dma would still likely be an opportunity for a bounce-and-rollover bearish entry rather than an opportunity for a long. I'm not sure about a bounce from 527-530, however. That might produce a more prolonged bounce, but we'll have to see what market conditions deliver. I'd be very careful about entering long positions today. Last night, the Nikkei delivered a couple of 50-point to 100-point bounces that were quickly reversed, only to see deeper declines.

  Jonathan Levinson   5/10/200,  8:15:54 AM
There are no major economic reports due today.

  Linda Piazza   5/10/200,  7:13:58 AM
Good morning. The Nikkei opened about 50 points underwater, steadied through the first hour and then plummeted. The Nikkei closed an incredible 554.12 points or 4.84% lower, at 10,884.70. It was just April 28 when the Nikkei last closed above 12,000. Remembering that the Nikkei has been closed for the May holidays 4 out of the 8 trading days since that April 28 date, it's taken an incredible tumble in a short time.

The dollar climbed against the yen. Big-caps Sony, Mizuho Financial, chip-equipment maker Kyocera Corp, and NTT DoCoMo led the early declines. When revealing earnings after the close on Friday, NTT DoCoMo cited mounting competition in the wireless Internet market when it commented that sales and operating profit might fall this year. At least two brokerages trimmed their recommendations as a result of that earnings announcement, and by the end of the day, the company's stock had dropped 13.4%. Many stocks saw big declines, including NTT Data, dropping 8.5%; Softbank, falling 10.5% ahead of its after-the-close earnings report, a report that included a widening net loss; and Nikon, dropping 5.5%. Auto stocks turned in mixed performances. Several dropped, including Mitsubishi Motors, reacting to speculation that it might stop producing some of its large passenger models in the domestic market and that DaimlerChrysler will reduce its position in the company. Despite the early losses in Japan, Canon and Toyota gained in early trading, but Toyota at least could not hold onto its gains. Toyota reports earnings tomorrow, and may top 1 trillion yen in profit, the first Japanese company to do so. Honda did squeak out a 0.2% gain. Other gainers included Sumitomo Electric Industries, closing 2.9% higher after saying that it would be the first company on the globe selling a high-temperature superconductive wire. Sumitomo Chemical made an alliance to build a refinery and petrochemical complex with Saudi Aramco, and ended the day 4.1% higher.

Other Asian bourses mostly traded lower, too, with hefty percentage losses. The Taiwan Weighted dropped 3.56% and South Korea's Kospi lost 5.73%. Singapore's Straits Times dropped 2.82% and Hong Kong's Hang Seng fell 3.57%. China's Shanghai Composite fell 2.22%.

European bourses drop quickly this morning, too. One headline mentioned that energy prices and concerns about U.S. rate hikes sent the U.K. stocks lower, with the same factors being mentioned as responsible for losses in the eurozone. However, a drop in energy prices this morning as Saudi Arabia indicated that it would increase output is being credited with moving some European bourses off their lows. Their rises off those lows are tepid as I write, however.

Asia's steel producer Posco had fallen and Europe's Arcelor was falling in early trading, too. Arcelor's tumble was at least in part due to its earnings report in which it mentioned that a dearth of raw materials forced it to lower exposure to export markets. The company mentioned the measures it had taken to limit the impact of rising materials costs. Deutsche Bank spoke positively about the company after the report. Deutsche Bank was also in the news on its own regard, with its chief executive mentioning in a newspaper report that the bank is interested in acquiring other banks. Deutsche Bank headed lower in early trading.

As of this writing, the FTSE 100 has dropped 74.70 points or 1.66%, to 4423.70. The CAC 40 has added 66.53 points or 1.82%, to trade at 3586.65. The DAX has dropped 87.92 points or 2.26%, to 3807.72.

  OI Technical Staff   5/9/2004,  6:31:18 PM
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