Option Investor
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  Jeff Bailey   11/2/200,  5:07:16 PM
Closing Internals at this Link

  Jeff Bailey   11/2/200,  4:10:16 PM
Current OPEN MM Profiles at this Link

Today's activity ....

Swing trade long/bullish 1/2 position in JDS Uniphase (JDSU) at $3.16. Got stopped out at $3.10. ($-0.06, or -1.90%). Stock closed at $3.15.

Day trade short/bearish Travelzoo (TZOO) at $84.15, closed out at $82.50. ($1.65, or +1.96%). Stock closed $82.48.

  Jeff Bailey   11/2/200,  4:02:47 PM
Pfizer Nov. $25 puts (PFE-WE) get late action, but looks like a cross at $0.15 x $0.20. Is this a "Kerry Wins" sign? Even a small one.

  Linda Piazza   11/2/200,  3:59:10 PM
Today the IUX, the S&P Insurance Index, retraced 50% of the steep recent decline, and then pulled back from that retracement. I mention this because the S&P's declined when the IUX was plummeting and then rose again when the IUX was recouping some of that loss, with a direct day-by-day relationship in the two. The 50% retracement level is ordinarily a powerful one, and one that could turn the IUX lower again. The trouble is that the recovery has been a V-bottom one, not the typical bear flag climb up into resistance, so that clouds the predictions a bit. Anyway, watch the IUX.

  Jeff Bailey   11/2/200,  3:58:21 PM
VIX.X 16.20 -0.43% .... shot higher from 15.50 just prior to 03:00 PM

  Jonathan Levinson   11/2/200,  3:57:45 PM
37.18-.20 resistance has just held for its first test.

  Jeff Bailey   11/2/200,  3:57:14 PM
SPX.X 1,130 -0.03% .... SPX most active options with 5-minutes left...

NOV 1,175 CALLS (10,903 : 29,981), NOV 1,150 CALLS (9,176: 33,166), NOV 1,100 PUT (8,947 : 48,672), NOV 1,025 PUT (8,049 :35,345)

  Linda Piazza   11/2/200,  3:55:58 PM
The quick moves have separated the Keltner lines, so that it's difficult now to tell where the OEX might find resistance, but strongest nearby candidates are 541-541.10 and 542-542.20.

  Tab Gilles   11/2/200,  3:53:44 PM
How far will this pre/post election rally run? I'm agreeing with Stephen Tetreault comments earlier and have mentioned it to Linda, that I would not be surprised if there was a sell-on-the-news market tomorrow. Attached are 2 charts the Dow and the UWPIX Profund which I've use to short the Dow. It trades at 200% inverse to the Dow. I just recently sold it at $30.50, having gotten in at $28.52. Link Link

Those interested in oil stocks know I track Murphy Oil, MUR. It is nearing its 100-ema in which it has been a buy in the past, see chart attached. Link

  Jeff Bailey   11/2/200,  3:50:31 PM
TZOO $82.46

  Jeff Bailey   11/2/200,  3:49:48 PM
Bearish day trade close out alert for Travelzoo (TZOO) here at $82.50

  Linda Piazza   11/2/200,  3:48:13 PM
The OEX does make its way down toward 538.82, but it hasn't made it there quite yet and may not. (See my 15:25 post.)

OEX traders, it's time to make up your minds whether your nerves will allow you to hold a position overnight and determine an exit plan if you don't intend to hold overnight. I don't think I'd hold anything but lottery money type plays. This afternoon's action wasn't bullish and neither will the daily candle be, barring some exciting action in the last few minutes of trading, but this has more to do with risk-averse traders taking money off the table than to any normal trading patterns. I don't think we can trust it, one way or the other.

  Jeff Bailey   11/2/200,  3:42:38 PM
Bearish day trade lower stop alert ... for Travelzoo (TZOO) $82.47 ... to $83.10.

  Jim Brown   11/2/200,  3:40:21 PM
Early exit polls from Command-Post.org

Here are the first exit polls, confirmed from sources in both parties, as leaked to RAW STORY. The first number is the percentage of voters supporting Kerry, the second are those supporting Bush.

AZ 45-55 B
CO 48-51 B
LA 42-57 B
MI 51-48 K
WI 52-48 K
PA 60-40 K
OH 52-48 K
FL 51-48 K

A second round of polls, conducted by the Kerry campaign, show similar trends, also suggesting the senator will will New Mexico and New Hampshire.

MICH 51-47 K
NM 50-48 K
MINN 58-40 K
WISC 52-43 K
IOWA 49-49 B
NH 57-41 K

Again, GRAIN OF SALT WARNING ... let’s not forget that Florida changed hands four times in four hours in 2000

Thanks to DC for the link - Jim

  Jonathan Levinson   11/2/200,  3:38:31 PM
37.18-.20 QQQ should act as resistance on the bounce. A new 30 minute cycle downphase is in progress, complete with a bearish Macd divergence.

  Linda Piazza   11/2/200,  3:34:44 PM
A raft of moving averages cycle just below the OEX's current position, ready to support it, including the 50-dma at 538.62.

  Linda Piazza   11/2/200,  3:32:54 PM
The OEX is trying to hold onto that 540-540.80 level, at 540.57 as I type. Keltner resistance gathers overhead at 541 and then again at 541.90-542.26. This isn't going to leave a pretty candle at all if the OEX closes the day here. Bulls do not want to see the OEX (or other indices) close the day negative.

  Jeff Bailey   11/2/200,  3:28:55 PM
Swing Trade Bullish stop alert ... for JDS Uniphase (JDSU) $3.10 (on the 1/2 bullish underlying stock position).

  Jonathan Levinson   11/2/200,  3:28:26 PM
Session highs for ZN bond futs, gold moving higher to 422, QQQ down to 37.07 and heading for another test of 37.00-.02.

  Jonathan Levinson   11/2/200,  3:26:44 PM
Session lows here, with the indices flipping negative.

  Linda Piazza   11/2/200,  3:25:46 PM
OEX 542.15-542.30 Keltner resistance still looks stronger than Keltner support. On the 7-minute chart, there is no Keltner support directly beneath the OEX, making 538.82 look possible unless the OEX bounces quickly.

  Jonathan Levinson   11/2/200,  3:25:04 PM
Volume is considerably higher now than it was prior to the clothesline drop after 2:30PM.

  James Brown   11/2/200,  3:19:56 PM
Semiconductor stock PMCS is edging past resistance at $10.50 and its simple 100-dma.

  Linda Piazza   11/2/200,  3:19:25 PM
The TRAN dropped again with the others, but hasn't yet reached a new low of the day. The TRAN's drop today was a harbinger, I think, as if often serves as an indicator index for the others.

  James Brown   11/2/200,  3:17:15 PM
United Parcel Service (UPS) is shaking off the Transportation index weakness with another new all-time high at $79.53.

  James Brown   11/2/200,  3:15:36 PM
The rally continues in shares of Chicago Mercantile Exchange (CME). The stock is up 2.67% to $180.51.

  Jeff Bailey   11/2/200,  3:12:24 PM
Bearish day trade lower stop alert .... for Travelzoo (TZOO) $83.00 -6.19% .... to $84.50.

Post profile low has been $81.75.

  Jeff Bailey   11/2/200,  3:10:47 PM
Buy Program Premium ... SPX 1,133.90, QQQ $37.30

  Jeff Bailey   11/2/200,  3:09:37 PM
03:00 Internals at this Link

SPX trading 1,132.44 +0.17% here.

  Jonathan Levinson   11/2/200,  3:07:09 PM
QQQ is retesting the session lows here.

  Linda Piazza   11/2/200,  3:04:16 PM
The OEX 540-541 support is holding, but Keltner resistance is building near 542.70, too.

  Jeff Bailey   11/2/200,  3:03:25 PM
03:00 Market Watch at this Link

  Jonathan Levinson   11/2/200,  3:02:45 PM
The sell program had volume of 3M QQQ shares within 100 ticks, the largest in 2 days. The bounce came from yesterday's high. 37.30 should now act as resistance, 37.18 support.

  Linda Piazza   11/2/200,  2:57:17 PM
This drop is steep. Wish I'd been back soon enough to predict how steep, rather than just say I expected a drop to begin at any moment, based on Keltenr evidence. We'll see the 540-541 support level tested, it appears. I'm scrambling to study as fast as possible, and still don't have a good enough grip to decide whether it's likely to hold, but those in bearish positions should be prepared for the possibility that it will.

  Jeff Bailey   11/2/200,  2:57:13 PM
Buy Program Premium ... SPX 1,133.25 , QQQ $37.29, TNX.X down 1.4 bp at 4.076%.

  Jeff Bailey   11/2/200,  2:56:22 PM
Biotech Index (BTK.x 513.38 -0.35% .... notable decline in last 20 minutes.

  Jim Brown   11/2/200,  2:56:05 PM
News hitting the wire now that exit polls in Florida and Ohio say Kerry is doing well with a substantial lead. This drop could be the removal of the Bush premium.

  Jeff Bailey   11/2/200,  2:55:26 PM
Sell Program Premium SPX 1,134.05 , QQQ $37.24, TNX.X down 0.6 bp at 4.074%.

  Jonathan Levinson   11/2/200,  2:55:10 PM
QQQ just sliced through 37.30 and is now below all but the rising 60 min cycle channel, breaking that level as I type.

  Jeff Bailey   11/2/200,  2:54:00 PM
Travelzoo (TZOO) $84.16 here.

  Linda Piazza   11/2/200,  2:53:24 PM
And there's the OEX decline that the Keltner charts predicted. (See my 14:43 post.) First possible support might be near 542.30.

  Jeff Bailey   11/2/200,  2:51:53 PM
Day trade short alert .... for Travelzoo (TZOO) $84.15 -4.8% here, stop $85.70, target $78.50.

  James Brown   11/2/200,  2:51:47 PM
Semiconductor stock LLTC has been stuck under technical resistance at the simple 200-dma for months (since April). Today shares are breaking out.

  James Brown   11/2/200,  2:46:49 PM
Viacom (VIA.B) is also coiling for a breakout over its simple 200-dma.

  Jonathan Levinson   11/2/200,  2:46:10 PM
QQQ is drifting within its still-flat 30 min cycle channel between 37.30 support and 37.60 resistance. Price is 2 cents above its 10:30 AM level.

  Linda Piazza   11/2/200,  2:46:02 PM
The TRAN dropped steeply today, but has been grinding its way higher again, and is now back to a 50% retracement of the decline off yesterday's high. That 50% retracement is just over 3479, with the TRAN currently at 3479.87.

  James Brown   11/2/200,  2:45:44 PM
Semiconductor stock KLAC is coiling tightly for a bullish breakout over resistance at $46.00 and its simple 200-dma.

  James Brown   11/2/200,  2:44:40 PM
EBAY is up 1.85% and trading above $101. The stock is nearing its all-time high just over $102.

  Linda Piazza   11/2/200,  2:43:24 PM
I've just returned to find the OEX at the top of its descending regression channel, having come within a point of its 200-sma at 546.28. The Keltner chart shows it vulnerable to a pullback, with that pullback looking due any moment. I haven't been here long enough to observe breadth indicators and other such matters that would give me any kind of feel as to whether this would be a bull flag type, perhaps only a shallow one down to 544.20 or so, or something more.

  James Brown   11/2/200,  2:42:19 PM
Given Imaging (GIVN) continuing to break down after last week's earnings miss and warning. The stock has broken under its major moving averages and support at the $30.00 mark on very high volume. Shares are down another 7.6% today.

  Jeff Bailey   11/2/200,  2:39:55 PM
Trader for tomorrow with George Soros a known bear on the dollar and a backer of Kerry (or against Bush), look for gold/dollar to be an active trade tomorrow.

One thought I would have is that if Kerry were to win, then Soros might let the dollar rally, maybe be a buyer.

  James Brown   11/2/200,  2:39:42 PM
Dow-component Merck Co (MRK) is down another 4.3% to $27.05 on above average volume.

  Jonathan Levinson   11/2/200,  2:37:40 PM
Session low for euros here at 1.2663, -.63%.

  James Brown   11/2/200,  2:36:43 PM
Constellation Brands (STZ) is breaking out to new all-time highs over resistance at $40.00.

  James Brown   11/2/200,  2:35:22 PM
The short squeeze continues in shares of CCMP. The stock is up 8% to $39.72, just under $40.00 resistance. Volume is above average. The latest data put short interest near 27% of the float.

  James Brown   11/2/200,  2:33:54 PM
The homebuilders are really moving higher today. The DJUSHB index is up another 2.2%.

  James Brown   11/2/200,  2:31:50 PM
UBS is looking bullish here. The stock recently broke out over resistance at $72.00 and its simple 200-dma. Now shares are up another 2.2% on above average volume as it challenges resistance near $75.00.

  Jonathan Levinson   11/2/200,  2:31:12 PM
Gold futures are recovering slightly from their early shanking, having found support at 418 and currently trading 420.90. Volume is very heavy at 3777 emini contracts on Globex. HUI and XAU are holding most of their losses, -2.86% and 2.65% respectively. Nymex crude is currently -.475 at 49.65.

  Jeff Bailey   11/2/200,  2:27:55 PM
Airline Index (XAL.X) 52.37 +4.65% .... broke above its trending lower 200-day SMA (51.92)

  Jeff Bailey   11/2/200,  2:26:02 PM
Silicon Valley Bancshares (SIVB) $40.41 +0.52% ... since breaching the $40.00 has refused to close below $40.00.

  Jeff Bailey   11/2/200,  2:25:03 PM
S&P Banks (BIX.X) 367.52 +0.78% ... all-time highs

  Jonathan Levinson   11/2/200,  1:57:07 PM
Volume is again declining on this pullback for QQQ. First support is at 37.41, but the important level (once again) is 37.30, now lined up as well with lower 30 min channel support.

  Jeff Bailey   11/2/200,  1:37:29 PM
I'm going to run over and try to vote. Will be back as soon as possible.

  Jeff Bailey   11/2/200,  1:36:51 PM
Current OPEN MM Profiles at this Link

  Jonathan Levinson   11/2/200,  1:29:27 PM
QQQ is reaching higher toward upper 30 min channel resistance at 37.62.

  Jonathan Levinson   11/2/200,  1:10:53 PM
There should have been more of a pullback already, with QQQ still firm above 37.40. There's a downtick in the short cycle oscillators, but it's extremely weak given how overbought that cycle's become.

  James Brown   11/2/200,  12:48:21 PM
Interesting... one Florida exit poll puts Kerry ahead by four percent. Another Florida exit poll shows Bush ahead by eight percent.

  Jeff Bailey   11/2/200,  12:44:29 PM
12:40 Market Watch at this Link

  Jonathan Levinson   11/2/200,  12:40:13 PM
I don't follow the Dow Transports much, except that there's a pretty big divergence between the Transports (-1.42%) and the Dow (+.65%), not to mention the SPX (+.82%). That would be a Dow Theory non-confirmation, if I'm not mistaken.

  Stephen Tetreault   11/2/200,  12:39:59 PM
Folks this manipulated anemic volume rally is an attempt to stimulate the starving herd (mutual fund managers) into a possible frenzy as they smell water and food over the horizon, however the market is way to over-extended here with a huge supply of overhead resistance due to many that bought in January that are praying to escape at breakeven after being down for most of the year, to many stocks are above the 200sma’s and are deeply overbought on the daily and weekly charts, and I’m seeing very little volume commitment here, just some hot money rolling out of crude/bonds and chasing beta plays and heavily shorted stocks in order to hopefully stimulate short squeezes.

I would not put anyone’s money to work in this environment but then again I’m not a GREEDY fund manager is search or my year end-bonus. Be very-careful as we could see a KEY-REVERSAL doji candle today or tomorrow. As I believe we have had to many front runners into this so-called post election rally, and could see a SELL-INTO THE RALLY CRY

  Jeff Bailey   11/2/200,  12:29:55 PM
Russell 2000 Growth ($RUO.X) 305.59 +0.87% Link .... edges above its 10/06/04 relative high close of 305.09.

Russell 2000 Value ($RUJ.X) 874.98 +0.56% Link ... playing catch up.

  Jonathan Levinson   11/2/200,  12:25:09 PM
Gold has been slammed for a 9 point drop, currently trading 419.30, -2.1% for the day.

  Jonathan Levinson   11/2/200,  12:21:38 PM
The most bearish thing I see is a flattened 30 min cycle channel with the 30 minute cycle oscillators in overbougt territory. That should be a prelude to a 30 min cycle downphase. However, we've seen exceptionally poor price traction on the downphases for the past week, and today there is no hint of weakness in the price. All of these factors confirm a strong daily cycle upphase in progress for QQQ.

  James Brown   11/2/200,  12:09:43 PM
AutoZone (AZO)'s consolidation under the simple 200-dma is now into its fifth day. Given the short-term trend traders may want to prepare for a bullish breakout. It's probably no coincidence that AZO is also challenging resistance on its P&F chart.

  Jim Brown   11/2/200,  12:09:00 PM
GE filed a shelf offering for 60 million shares

  James Brown   11/2/200,  12:01:43 PM
The last few days Schlumberger (SLB) has been testing long-term support of higher lows near dating back to April 2003. Coincidentally this is near its simple 200-dma. This support appears to be failing as SLB slips lower toward the exponential 200-dma.

  Jeff Bailey   11/2/200,  12:00:39 PM
IBM $90.88 +0.83% ... here is a bar chart with conventional and (RED) reverse head/shoulder retracement. Lots of room to the bullish vertical count. Link

  James Brown   11/2/200,  11:58:04 AM
BMC Software (BMC) reported earnings this morning that beat by 2 cents and the company guided higher. Yet the stock is down 6.3% and painting a BIG bearish engulfing candlestick.

  Jonathan Levinson   11/2/200,  11:54:45 AM
The permanent open market op from the Fed totalled 1.2B, bringing the net drain for the day to 6.05B.

  Jonathan Levinson   11/2/200,  11:52:29 AM
At long last, the 30 min cycle channel is flattening for QQQ, with a range of 37.24-37.60. Look for support at 37.39 and key support at 37.30. My levels haven't changed from earlier, and bears need to see that lower support break for longer than 5 minutes to kick off a 30 min cycle downphase.

  James Brown   11/2/200,  11:52:22 AM
Ouch! Transportation stock Expeditors Intl of Washington (EXPD) is down 15.4% to $48.80. The stock is breaking down past several levels of support on big volume. The company just reported earnings but it appears to be a reaction to cautious comments over the fourth quarter.

  James Brown   11/2/200,  11:50:24 AM
Odyssey Healthcare (ODSY) is up more than 18% to $9.55 after reporting earnings yesterday that were in-line with estimates. ODSY management also announced a $30 million stock buy back program. This would be close to 10% of the float.

  James Brown   11/2/200,  11:46:55 AM
Playboy Enterprises (PLA) is up 5.89% to $11.68 and breaking out over the $11.50 level and its exponential 200-dma after reporting Q3 earnings of 6 cents a share compared to 3 cents a year ago.

  James Brown   11/2/200,  11:44:28 AM
Goldman Sachs also upgraded U.S.Steel (X) and shares are rising more than 4% to $38.93.

  James Brown   11/2/200,  11:43:55 AM
Goldman Sachs upgraded Nucor (NUE) to an "out perform" today. The stock reacted by gapping higher over resistance at $44 and has now climbed past round-number resistance at $45 and all its major moving averages. NUE +5.3% to $45.16.

  Jonathan Levinson   11/2/200,  11:30:52 AM
Silver is getting shanked, down 38.5 cents or 5.26% to 6.941. HUI is now down 3.37% at 221.68, XAU -3.06% at 98.83.

  Jonathan Levinson   11/2/200,  11:24:39 AM
The 30 minute cycle oscillators are doing what they always do on days like this- lagging the price action. An upphase is just reaching overbought territory here, which sets up a potential bearish divergence IF the oscillators turn back down. With the 30 min cycle channel support up to 37.20 here and price so firm, this is why I've been so insistent on a break of 37.30 as a first step to confirming any apparent weakness.

  James Brown   11/2/200,  11:21:28 AM
Investors are not responding well to Mentor Corp's (MNT) earnings. The company reported last night with profits of 28 cents a share in-line with estimates. At least one broker downgraded the stock to market perform. Shares of MNT are down 12.7% to $30.69, under the simple and exponential 200-dma's.

  Jim Brown   11/2/200,  11:18:57 AM
LUV claims to have all their fuel hedged at $25 a bbl through 2006.

  James Brown   11/2/200,  11:17:59 AM
Several news sources are quoting Ryanair (RYAAY) CEO and his comments predicting a "bloodbath" this winter in the airline industry. He believes his airline can absorb higher fuel costs better than his competitors.

  Jeff Bailey   11/2/200,  11:15:05 AM
11:00 Internals at this Link

  Jonathan Levinson   11/2/200,  11:13:42 AM
The Fed has announced a bill pass, no quantum known yet, which is a permanent addition to liquidity, presumably to offset some of the short term pain from today's 7.25B repo drain. Bill and coupon passes usually don't exceed 1B, and so I expect today to remain a drain. That drain should kick in at 2:30, which is when these amounts become payable (as far as I know). So far, once again, there's no hint of weakness for QQQ, and so long as it stays north of 37.30, any pullback is just that.

  James Brown   11/2/200,  11:12:55 AM
As Jeff pointed out earlier today IBM is doing well up about 1% to $91.00. The move over $90 is encouraging but IBM does have some congestion near $91 dating back to June 2004.

  James Brown   11/2/200,  11:11:19 AM
The GHA hardware index is up six days in a row and hitting new 2 1/2 year highs.

  Jeff Bailey   11/2/200,  11:07:53 AM
IBM (IBM) $91.16 +1.23% ... retraces 50% of its Feb-Aug decline. I'm looking to sell a covered call on the Nov. $95 (IBM-KS) should IBM trade $93.35 next couple of days.

  Jonathan Levinson   11/2/200,  11:07:19 AM
New highs for NQ futures, with QQQ close behind at 37.46.

  Jeff Bailey   11/2/200,  11:04:04 AM
11:00 Market Watch at this Link

  James Brown   11/2/200,  11:02:26 AM
Copper-miner Phelps Dodge (PD) is hitting new two-week highs and nearing round-number resistance at the $90.00 mark. The stock just broke out above all its major moving averages and its MACD has produced a new buy signal.

  Jonathan Levinson   11/2/200,  11:00:09 AM
30 min cycle channel resistance is up to 37.50 here, support at 37.12. The short cycle is trying to roll over, but volume is declining again. I'm dubious of any weakness above 37.31 QQQ.

  James Brown   11/2/200,  11:00:08 AM
Dow-component Caterpillar (CAT) is breaking out over resistance at the $82.00 level. The move is pushing its MACD into a new "buy" signal.

  James Brown   11/2/200,  10:59:12 AM
Loews Corp (LTR) is breaking out over resistance at the $60.00 mark this morning.

  Jeff Bailey   11/2/200,  10:54:17 AM
Taser Intl. (TASR) $42.26 +1.78% .... c'mon you bugger. Moving back above that $42.10-$42.17 overlap. Recent pullback found support at old "cheater's trend" that was broken to upside on 10/22.

  Jeff Bailey   11/2/200,  10:51:02 AM
Big Blue (IBM) $91.00 +0.97% ... "You look mahvelous" Link

  Jonathan Levinson   11/2/200,  10:47:17 AM
Gold remains weak, down 4.60 at 423.70 on heavy volume of 1769 emini contracts so far. HUI and XAU are also weak, down 2.41% and 2.24% at 223.88 and 99.67 respectively. Bonds are flat, TNX +0.1 bps at 4.091%. Equitiea are holding their gains, with QQQ unable to hold an advance past 37.40 but once again showing zero weakness.

  Jeff Bailey   11/2/200,  10:43:09 AM
Airline Index (XAL.X) 51.54 +2.99% ... sector winner. Approaching its trending lower 200-day SMA at 52.00.

  Jeff Bailey   11/2/200,  10:40:54 AM
NASDAQ-100 Tracker (QQQ) $37.41 +1% ... breaks above "cheater's trend" today.

  Jonathan Levinson   11/2/200,  10:25:52 AM
A bull flag it was. QQQ is now exceeding the previous highs, once again clear above all upper Keltner channels from short- to 60 min.

  Jeff Bailey   11/2/200,  10:25:41 AM
Morgan Stanley High Tech 35 (MSH.X) 465.56 +0.92% Link ... aside from trade at 200-day SMA and bullish crossover from MACD, today's trade at 465 gets MSH back on a "buy signal" and moving above longer-term downward trend.

Combined with NASDAQ-100 Bullish % ($BPNDX) its looking like a renewed "bull market" for technology.

  Jeff Bailey   11/2/200,  10:22:25 AM
10:00 Internals at this Link

Yesterday's Internals at this Link

  Jonathan Levinson   11/2/200,  10:21:44 AM
A light pullback on declining volume is printing off the top below 37.40. The 30 min channel band is catching up now, currently 37.33 and rising. This looks like a bull flag, shape- and volume-wise.

  Jeff Bailey   11/2/200,  10:15:17 AM
Microsoft (MSFT) $28.38 +1.03% ....

  Jeff Bailey   11/2/200,  10:13:15 AM
200-day SMA alert ... Morgan Stanley High Tech 35 (MSH.X) 465.32 +0.87% Link .... Looks bullish with a fresh MACD bullish crossover.

Component gainers .... ERICY $30.08 +2.48%, FLEX $12.70 +2.41%, JNPR $26.97 +1.92%, YHOO $37.50 +1.54%

Losers .... STX $12.62 -0.62%, TXN $24.71 -0.44%, STM $18.54 -0.26%

  Jonathan Levinson   11/2/200,  10:12:07 AM
QQQ has just blown through all the upper resistance channels I track, something that until a week ago was an extremely rare event. This should reverse within the next 5 minutes, failing which we'll be looking at another upside trending moonshot.

  Jonathan Levinson   11/2/200,  10:07:59 AM
QQQ is now nose-to-nose with rising 30 minute channel resistance at 37.23.

  Jeff Bailey   11/2/200,  10:04:41 AM
10:00 Market Watch at this Link

  Jim Brown   11/2/200,  10:00:16 AM
Alert - Challenger Layoffs = -5.6%, 101,840, (last 107,863)

  Jonathan Levinson   11/2/200,  9:59:08 AM
IB reports that the CBOE is currently unavailable for trading.

  Jeff Bailey   11/2/200,  9:56:49 AM
Swing trade long alert .... for JDS Uniphase (JDSU) $3.16 here, stop $3.10, target $3.35.

This is for 1/2 bullish position.

  Jonathan Levinson   11/2/200,  9:56:40 AM
A 3.25B overnight repo from the Fed's open market desk results in a big 7.25B net drain against the 10.5B expiring.

  Jonathan Levinson   11/2/200,  9:55:15 AM
Session high for QQQ here at 37.14. Note that 37-37.02 held on the pullback, a higher low, and unless this move higher breaks below it quickly, the 30 minute cycle will turn back up. The channel is currently flat, but 30 min resistance will begin to rise from its current 37.23 level within approx. 10 minutes if QQQ does not fall back.

  Jeff Bailey   11/2/200,  9:53:14 AM
VIX.X 16.01 -1.59% .... Daily Pivot Levels as follows .... 15.83, 16.07, Piv = 16.41, 16.65, 16.99.

  Jeff Bailey   11/2/200,  9:50:13 AM
F5 Networks (FFIV) $41.80 +4.94% ... nice jump from recent gap higher. Stock has exceeded its bullish vertical count of $38.00. Will have to try and slap a fitted retracement on this one.

  Jonathan Levinson   11/2/200,  9:45:56 AM
It looks like my feed has just died, but unfortunately it hasn't - just a sudden drop in volume, from the looks of it.

  Jeff Bailey   11/2/200,  9:44:01 AM
AMEX North American Telecom (XTC.X) 661.18 +0.47% Link ... multi-year highs and spread triple top on unconventional 5-point box.

Conventional 20-point box at this Link

  Jeff Bailey   11/2/200,  9:38:35 AM
Semiconductor Index (SOX.X) 409.60 -0.99% .... NSM -4.13% Link , TER -2.38% Link , MXIM -2.12% Link

TSM +1.44% Link , AMD +0.34% Link , AMAT +0.12% Link

  Jonathan Levinson   11/2/200,  9:35:03 AM
Session low for QQQ at 37.03 here. 37.00-.02 support is now in play.

  Jonathan Levinson   11/2/200,  9:33:35 AM
Session low for Dec gold at 425.80 with HUI down .77% and XAU not yet open.

  Jeff Bailey   11/2/200,  9:31:45 AM
Semiconductor HOLDRs (SMH) $32.24 -1.01% ....

  Jeff Bailey   11/2/200,  9:27:51 AM
Nextel (NXTL) $26.09 .... among pre-market most actives and higher at $27.00. NXTL and Verizon (VZ) $39.98 said they have reached an agreement to resolve their legal disputes and forego any trademark and other ownership rights to the phrase "Push To Talk"

  Jonathan Levinson   11/2/200,  9:06:54 AM
The downphase that was confirming the latest patch of the 30 minute bearish divergence in the NQ futures (premarket QQQ proxy) is still in progress, but it's stalling on the positive prints this AM. Channel support is at 36.81, resistance 37.17, and I expect to see the selling accelerate only in QQQ can get below 36.88 for at least 10 minutes. Given the absence of weakness for the past week, that's a tall order. The bearish-D should abort if QQQ can break and hold 37.23 for longer than 10 minutes, which would turn the channels back up.

  Linda Piazza   11/2/200,  8:51:07 AM
I will be gone for the open this morning for a series of appointments. I'll return as soon as possible, but can't be sure at this point how soon that will be.

I can testify that voter lines are long this morning. I attempted to vote before time for these appointments, but the lines were so long that I knew I'd be late and had to leave the line. I'll have to wait until after the markets close this afternoon to try again.

  Jonathan Levinson   11/2/200,  7:56:24 AM
Equities are higher, with ES trading 1133.5, NQ 1496, YM 10067 and QQQ +.1 at 37.13. Gold is down 1.80 to 426.50, silver -.07 to 7.255, ten year notes down .062 to 113.0625 and Nymex crude -.20 to 49.925.

There are no major economic reports scheduled for release today.

  Linda Piazza   11/2/200,  6:36:35 AM
Good morning. Bourses gained across the globe in the overnight session as banks and airlines tended to perform well. Trading has been thin on European markets, however. Our futures reacted by climbing, too, although modestly. As of 6:21 EST, gold was down $1.70 and crude, $0.22. More detail about Asian and European markets follows in succeeding paragraphs.

The Nikkei's five-day chart looks as if it's been hit with buckshot, with gaps at every open. Tuesday's was no exception, with the Nikkei gapping higher as exporters benefited from dropping crude prices. Banks rebounded from Monday's losses after Mizuho Financial Group guided analysts to look for better-than-previously-expected results when it reports November 22.

After gapping higher, the Nikkei climbed throughout the session. Ahead of Wednesday's one-day holiday in Japan, it closed higher by 153.10 points or 1.43%, at 10,887.81. Not all sectors gained, however, with some chip stocks taking a hit after National Semiconductor's lowered targets. Toyota also fell after its earnings report.

Most other Asian markets joined the Nikkei in posting gains. The Taiwan Weighted gained 1.83%. In a trade dispute with Matsushita's Electric Industrial Company, South Korea's LG Electronics said it would take measures against Matsushita if Japan acceded to Matsushita's request to suspend importation of LG Electronic's plasma display panels. The Kospi gained 1.32%. Singapore's Straits Times gained 0.84%, and Hong Kong's Hang Seng gained 1.64%. China's Shanghai Composite declined 0.29%.

Currently, almost all European bourses post gains, too, but in thin volume ahead of our elections. In an odd comment to the way that some sectors react to raised or lowered crude prices, the U.K.'s Ryanair had climbed 8.5% at one point this morning despite a company spokesperson being quoted as predicting a "bloodbath" in the airline industry, saying that some airlines would fall. The company did say that a less-than-expected decline in expected passenger yield would help offset higher crude prices. Other airlines gained, too, in continental Europe as well as in the U.K. As had been true in Asia, banks gained, helped by a positive reaction to UBS's earnings. Net profit was down, but apparently in line with expectations.

As of 6:21 EST, the FTSE 100 has gained 9.00 points or 0.19%, to trade at 4,682.80. The CAC 40 has gained 15.54 points or 0.42%, to trade at 3,749.61. The DAX has gained 12.50 points or 0.31%, to trade at 4,025.14.

  Jeff Bailey   11/1/200,  11:40:11 PM
Major Economic Reports Calendar at this Link with some revised economic forecasts.

  Linda Piazza   11/1/200,  9:44:53 PM
This OEX chart should look familiar: Link Monday was driven by indecision, indecision that showed up in a doji on the daily chart. That indecision shows up on the intraday charts, too, with the OEX oscillating between support and resistance all day Monday. For those who follow my Keltner chart posts, the OEX is settling into an equilibrium position on the Keltner charts. If it maintains that equilibrium position--and it's capable of maintaining that position through several hours--it will oscillate in a tight range that's probably not going to be profitable for OEX options traders. A breakout above the 200-week ema at 542.31 might be a sign that the OEX is going to reach for the top of its descending regression channel and 200-sma on the daily chart. A break below yesterday's low might be a sign that the OEX is going to reach down for a test of 536.50-537.50, with the 200-day ema at 537.39. The truth is that technical analysis will not be the best predictor of action tomorrow, and those who don't want to trade based on what they think will happen or should happen might best stay out. Breakout plays entered early in the morning have a spotty profitability record lately, so be careful about jumping on a breakout play in either direction tomorrow morning, being ready to jump right back out if necessary.

I'll be gone tomorrow morning at the open, but will return as soon as possible.

  OI Technical Staff   11/1/200,  6:15:18 PM
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