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OI Technical Staff : 10/28/2005 9:59:59 PM

The Market Monitor has been archived. You may view it and any previous days here: Link

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Jeff Bailey : 10/28/2005 8:52:20 PM

Weekly / Monthly Pivot Matrix found at this Link

Last 3 Week's Pivot Matrix found at this Link

Behold the Bernanke Bank Bounce!

Jeff Bailey : 10/28/2005 7:32:29 PM

Coca-Cola (KO) $42.83 +1.61% ... DJ - Company hikes concentrate prices for Mexican bottlers.

For the first time in 10-years, KO is raising the price of its concentrate formula for soft-drink bottlers in Mexico, the company's biggest market outside the U.S.

The company said the move will be phased in over three years starting in 2007, and the country's biggest bottler, Coca-Cola Femsa SA (KOF) $26.55 -2.46% Link said it will ultimately raise its costs by $60 million a year.

Jeff Bailey : 10/28/2005 6:17:59 PM

Closing U.S. Market Watch found at this Link

Jeff Bailey : 10/28/2005 6:09:09 PM

Coca-Cola (KO) $42.83 +1.61% Link ... announces it has signed a new agreement with Pizza Inn (PZZI) $2.65 +1.92% Link to serve as primary beverage partner.

Earlier today, KO also announced it had selected independent agency Wieden & Kennedy to lead a global brand overhaul in conjunction with its local advertising agencies. KO plans to spend an additional $400 million in marketing this year.

Jeff Bailey : 10/28/2005 5:51:18 PM

Closing Internals found at this Link

Jeff Bailey : 10/28/2005 5:10:24 PM

Current OPEN MM Profiles found at this Link ...

Today's Activity ... Closed out the entire KLA-Tencor KLAC Nov. $47.50 Put (KCQ-WT) in two parts. Sold 1/2 at $3.30 ($+1.55, or +88.57%) and the other at $2.60 ($+0.85, or +48.57%).

Swing traded long 1/2 position in Chesapeake Energy (CHK) at the offer of $31.25. Stop currently $29.90, targeting $35. Calls are deemed "expensive" and might look for some covered call action should the stock cooperate with a little run higher next week.

Monthly/Weekly Trade Blotter of CLOSED Trades found at this Link

Jeff Bailey : 10/28/2005 4:50:14 PM

Good Gravy! ... Schlumberger (SLB) $89.38 +3.70% Link ... shorted this bad boy on 10/20/05 at $80.72 and got covered just in time at $80.25.

Jeff Bailey : 10/28/2005 4:39:54 PM

Large Block Alert ... 1.8 million shares blocked in the QQQQ at $38.37 in extended session.

Linda Piazza : 10/28/2005 4:17:06 PM

OEX Trade Recap
Today:
Bearish entry at OEX 548.10. Took profit on partial position at 547.54. Took profit on the rest of the position at 546.62.

Week
Monday:
Bearish entry at OEX 548.37. Partial profit at 547.20. Stopped out of the rest of the position at 550.45.
Wednesday:
Entry at 551.57. Exit at 554.30, for a 2.73-point move against the position.
Not as auspicious a week as last week's beginning to these OEX plays. We'll do better as I fine-tune my methodology for use on the MM.

Jeff Bailey : 10/28/2005 4:01:28 PM

Sell Program Premium ... DIA $103.91, SPY $119.78

Linda Piazza : 10/28/2005 4:00:05 PM

The OEX could break out Monday and charge higher and never look back. It could. That's a possibility I'm of course keeping on the radar screen. But don't get too excited and risk too much. Remember 10/19, when the OEX closed at 554.06 and had a bigger range than today's? Remember 10/24 when it had a tall candle of about the same size, although it did close a little lower?

Tab Gilles : 10/28/2005 3:57:23 PM

$VIX/$NYHL/$NYA Link

Linda Piazza : 10/28/2005 3:56:53 PM

So far, the OEX has not retraced even 50% of the drop off the 10/03 high or 38.2% of the drop off the 9/09 high. The formation is now a mostly rectangular formation at the bottom of the OEX's drop, with such formations serving sometimes as reversal formations but often as continuation patterns. (I don't even want to think about downside targets if that's a continuation pattern.) The rectangular formation now spans from about 544-554, with some spikes outside that range. The weekly candle is bullish but not the monthly.

Linda Piazza : 10/28/2005 3:52:44 PM

End of day OEX decisions: There's a possibility/likelihood for an early pullback Monday morning, although such a pullback could be from a higher open or after an early run higher. We'll have to see after the open whether it's just a pullback or another wild swing lower, in the alternating pattern the OEX has had lately.

Jeff Bailey : 10/28/2005 3:50:14 PM

BioCryst Pharma (BCRX) $13.45 -4.40% Link ... defensive towards the close.

Yesterday's downgrade by Rodman & Renshaw along with Chiron (CHIR) $43.44 +1.82% news might be the nail in this bird's cage.

Technicals show high pole warning followed by recent double bottom sell signal.

Linda Piazza : 10/28/2005 3:49:00 PM

OEX managed to close that last 15-minute period above the Keltner line currently at 553.52, reinstating the 30-minute target, now at 554.86. SPX hasn't been able to make it up to its 200-sma yet, but I'm sure that's a target and the bullish hope, to end it at/above that MA. SPX 200-sma at 1199.20 with the SPX at 1197.30.

Linda Piazza : 10/28/2005 3:42:50 PM

OEX pushing up through the 15-minute resistance again, back toward the 30-minute target, now at 554.84. It's also retesting the top of that rising wedge shape, not yet back above it. The advdec line is rising again over the last few minutes. OEX at 554.04 as I type.

Linda Piazza : 10/28/2005 3:35:53 PM

The OEX has broken its upside signal on its 15-minute chart, after having reached up and touched the 30-minute resistance. It's rising again, and 553.33-553.56 may now be resistance on 15-minute closes, although with the shorts running scared this afternoon, I'm not certain that resistance is going to hold. We have some bearish price/RSI divergences setting up through the 30-minute chart on the OEX (as compared to the 10/26 high. If price beats that high, the divergences will be erased, but they're there for now. As long as the OEX maintains 15-minute closes above the Keltner line currently at 552.37, however, the upside trend remains intact, and that's the first place you should look for support on a pullback. Bulls, be careful.

Jeff Bailey : 10/28/2005 3:25:45 PM

S&P 500 Index (SPX.X) 1,196.50 +1.49% ... set to challenge its starting to round lower 200-day SMA at 1,199.

Linda Piazza : 10/28/2005 3:25:32 PM

OEX Keltner picture: OEX so far holding 15-minute support, currently at 553.30 on 15-minute closes, with 30-minute resistance at 554.74 on 30-minute closes. OEX at 553.65 as I type, with about five minute left in the period.

Jeff Bailey : 10/28/2005 3:24:16 PM

June 06 Fed Funds futures (ff06m) 95.33 -0.03% ... contract lows. Currently predicting 70% probability of four (4) 25 bp rate hikes.

Jeff Bailey : 10/28/2005 3:18:32 PM

03:00 Internals found at this Link

Linda Piazza : 10/28/2005 3:18:27 PM

Uh-oh, OEX bulls. The OEX hit its 30-minute upside target and is pulling back, so far leaving only a spike up to that target. There's still half of this current 30-minute period left, and the OEX has 15-minute support beneath it at 553.23, but you don't want to see the OEX fall beneath that on the current 15-minute close. The OEX broke out of the rising wedge, but not falls slightly back inside it, and now you don't want to see it fall to the other side, with support at about 551.32 currently and then break through that. None of that has happened, but I warned to be careful of the 30-minute upside target and support, so take steps to protect your profits.

Linda Piazza : 10/28/2005 3:13:35 PM

The BIX has been finding resistance at the 38.2% retracement of its decline off the July 15 high into the October low. Today, it finally broke above that resistance at about 344.12, and it's charged higher, toward the 50% retracement, at about 349.42. The BIX is at 347.62. Bulls want to see it hold above that 38.2% retracement into the close, because a drop back below it would show that it's still holding as resistance. Right now, the advdec line is not dropping as of yet, and we know that some of that money today is going toward financials, but keep a watch on this.

Linda Piazza : 10/28/2005 3:08:31 PM

RUT still between its 200-sma and-ema's.

Linda Piazza : 10/28/2005 3:06:09 PM

The OEX is charging straight up now toward that 30-minute target, but also toward the top of the former rising trendline off last week's low, with that trendline at about 554.73 now. That's right about at the 30-minute Keltner target of 554.70 on 30-minute closes, too. I'm not certain if the OEX will get stopped there because once the bullish steamroller gets going, it sometimes steamrolls over shorts right into the close, but just be aware of the resistance being tested.

Jeff Bailey : 10/28/2005 3:05:07 PM

03:00 Market Watch found at this Link

Linda Piazza : 10/28/2005 3:03:12 PM

OEX trying to break out on the 15-minute Keltner chart, setting a new 30-minute upside target, with that target at 554.59. However, the OEX is also testing the top of its rising wedge shape, and it's uncertain as yet whether it will be able to break out. Certainly giving it a good try. I'd be very careful about protecting bullish profits at 554.62, and congratulations to those trading on other methodologies who might have gone long today. Although I saw the possibility for a day like that on 9/09, I certainly wasn't going to risk it with no clear signals by my methodology and ahead of those indictments.

Tab Gilles : 10/28/2005 2:58:42 PM

QQQQ Top 10 stocks. Link

$SOX Link SMH Link INTC Link

Linda Piazza : 10/28/2005 2:57:39 PM

OEX testing the top of it rising wedge shape. If it's going to break through to the upside, now is the time to do it.

Linda Piazza : 10/28/2005 2:57:03 PM

RUT just now rising up to test the 200-sma and -ema's, with those at 634.60 and 634.89, respectively. The RUT is at 634.71, between the two.

Jeff Bailey : 10/28/2005 2:55:10 PM

KLA-Tencor (KLAC) $45.62 -3.38% ... note low/high at this point ... $44.03/$45.95.

Jeff Bailey : 10/28/2005 2:53:30 PM

QQQQ $38.34 +0.81% ... reclaims WEEKLY Pivot.

Linda Piazza : 10/28/2005 2:56:05 PM

I've said a couple of times today that the advdec line could have been setting up as it did 9/09 and that meant first, that I wanted out of that bearish trade this morning fairly early, but that I probably wouldn't get another signal since after the first pullback on 9/09, the advdec line was producing bearish divergences the rest of the day. That's been happening again on some time intervals today, too, with the advdec line, and it has been behaving as it did on 9/09, so I was wise to get out of that play as quickly as possible today. In fact, have you noticed how near the LOD our exit was? Whew. Close call. (Or close put? Smile.)

I usually start over fresh each day with the advdec line, other than using it at the end of the day to tell me whether we might see an early bounce or early decline the next trading day. However, I just thought to look at the next trading day following 9/09. Have you looked? September 9 was a Friday, too, so the next trading day was a Monday. That Monday, the OEX printed a small-bodied candle. Then, the OEX fell. September 9 turned out to be the September high.

I do start out fresh with the advdec line each day and the chart formation right now is nothing like that on September 9, so I'm not suggesting that the markets are going to crater from here. Back then, the daily candles had been climbing off the August low and in a rally, not in this choppy, crazy back-and-forth stuff we've had for the last several weeks. I just thought it was interesting since I've been mentioning the similarity with the 9/09 pattern all day, suggesting that we could see a continued climb today, but hadn't bothered to look at what happened after that. And I thought it might serve as a good cautionary tale to those who are all-out bullish. The OEX hasn't broken out of that consolidation zone although it's going to give it a good try, isn't it, and could do it at the end of the day.

Linda Piazza : 10/28/2005 2:43:33 PM

The OEX is now testing its daily 21-ema at 551.81, and with the OEX currently at 552.11. The OEX has pierced this average several times over the last week, but hasn't been able to close above it.

Linda Piazza : 10/28/2005 2:34:49 PM

The OEX's rising regression channel off the yesterday's low has now narrowed to a bearish rising wedge. While we've seen any number of these break to the upside, be aware of its shape. Current parameters are upside resistance at about 553, current support at about 550.55.

Linda Piazza : 10/28/2005 2:32:46 PM

Still having technical difficulties, and my broker's site tells me I'm not the only one. In case your online broker hasn't let you know, the PSE (Pacific Exchange) is having technical difficulties with options quotes. Option chains and quote detail may be impacted.

Jeff Bailey : 10/28/2005 2:28:31 PM

Buy Program Premium first of the day ... DIA $103.64, SPX 1,194.15, QQQQ $38.27

Jeff Bailey : 10/28/2005 2:27:49 PM

Swing trade long 1/2 position alert ... for Chesapeake Energy (CHK) $31.25 +0.38% here, stop $29.80, target $35.00

Linda Piazza : 10/28/2005 2:17:53 PM

I lost electricity--four times!--and have now switched to a laptop to work, but each time it goes out, my wireless connection gets hit, too. My connectivity may be limited this afternoon. The OEX punched higher, with that little cup-and-handle formation being bullish after all. The OEX approached the reistance of the Keltner channel that often holds it back, at 552.63 on 15-minute closes, with the HOD at 552.32. Until the OEX begins producing 15-minute closes beneath the Keltner line currently at 550.68, it is preserving its upside tenor for the day, but I'd still urge caution. I'm obviously not going to be posting any play suggestions when I don't know how long I'll be connected at any one time.

Jeff Bailey : 10/28/2005 2:13:00 PM

02:00 Internals found at this Link

Jeff Bailey : 10/28/2005 2:03:47 PM

02:00 Market Watch found at this Link

Linda Piazza : 10/28/2005 1:58:13 PM

Lots of chopping around. I was wrong about the the exact level, but not wrong about the range or the overall scenario. See my 11:25:04 post. This is the reason that I was hesitant to post any more plays, with this possible scenario in mind.

Linda Piazza : 10/28/2005 1:55:07 PM

The OEX retests the five-minute 21-ema at 550.19. If that should hold as resistance and the OEX should decline, such a decline might bring the OEX down to test the bottom of that channel in which it's been moving up off last week's low. That would currently be near 549.35, but I wouldn't assume that the channel would break or that it has broken until there's a five-minute close below the five-minute 100-ema at 549.34. OEX at 550.24 as I type.

Linda Piazza : 10/28/2005 1:49:37 PM

The bottom of the ascending regression channel in which the OEX has moved off last week's low is now at about 549.30, the level of the five-minute 100-ema.

Linda Piazza : 10/28/2005 1:42:36 PM

Just noticed the time. One prime stop-running time of day is approaching/has approached.

Tab Gilles : 10/28/2005 1:42:08 PM

J.P. Morgan Chase (JPM) Desceding Triangles are usually a bearish chart, here on JPM it has boken out in the past few weeks. Link Link

Linda Piazza : 10/28/2005 1:41:58 PM

I thought there would be likely be some choppy OEX trading this afternoon, but I thought it would mostly be from 548-550 or so. Instead, it's been from 549.60-551.06. Similar range, but higher level. The OEX is at 550.73 as I type, staying near the higher end of that range, and still looking as if it's trying to complete a cup-and-handle formation on the five-minute chart but with advdec line resistance still tentatively holding.

Linda Piazza : 10/28/2005 1:39:03 PM

Another retest of the day's high and the formation on the five-minute chart is beginning to look like a little cup-and-handle, with those formations often being continuation formations, so bullish if confirmed. We'll soon see, though, as the advdec line resistance continues to tentatively hold. Mixed evidence. Any formation can be rejected, too, even a cup-and-handle one. Note: OEX pulled bck a little from that test as I typed.

Linda Piazza : 10/28/2005 1:35:47 PM

The OEX's 60-minute 100-ema is at 551.04.

Jeff Bailey : 10/28/2005 1:33:36 PM

GSI Group (GSIG) $8.59 +1.17% Link ... reiterates guidance. Company notes recent volume in shares.

Linda Piazza : 10/28/2005 1:26:18 PM

Advdec line still coiling. So far, it hasn't been able to break above the supporting trendline that bounced it earlier today, just after we had exited our bearish play (whew!). Anyway, but that very tentative measure, it's showing weakness relative to its earlier performance, but still just coiling.

Jeff Bailey : 10/28/2005 1:19:20 PM

White House Accepts Libby Resignation ... DJ - The White House has accepted the resignation of Vice President Dick Cheney's chief of staff, I. Lewis "Scooter" Libby Jr., who was indicted Friday in the CIA leak case.

White House spokesman Scott McClellan said Libby submitted a resignation letter to White House Chief of Staff Andy Card earlier Friday. He said Libby is no longer in the White House.

Linda Piazza : 10/28/2005 1:17:34 PM

The OEX tests its 551.06 HOD. Bulls should be aware of double-top possibilities. The OEX has formed a rising regression channel off last week's low and it approached but didn't quite touch the top of that channel when making that first test of 551.06. When subsequent approaches to the top of such a channel begin stopping short of the top of the channel, it can be a sign that strength is waning, but that remains to be seen whether that was what was being signaled. For now, I'm watching as the advdec line coils now. My bias, giving the uncertainty brought by the day's events, would be for a downdraft. Chart characteristics tell me instead that one scenario could be a churning around for a time. Other signals are more bullish.

Jeff Bailey : 10/28/2005 1:12:52 PM

01:00 Internals found at this Link

Linda Piazza : 10/28/2005 1:10:56 PM

OEX Keltner picture: Earlier today, the OEX closed above the 30-minute Keltner mid-channel S/R at 550.07, but the 30-minute candles have mostly formed along that S/R line, some above it and some below it, rather than confirming strength. It's still a draw according to that chart. The 15-minute chart looks stronger, with support on 15-minute closes holding for a line currently at 549.62. So far. I have no particular faith in this rally, but do acknowledge that the advdec line may be setting up as it did 9/09 and could therefore just zigzag across the 30-minute line now at about 1800 the rest of the day, with prices either steadying or having a tendency to bounce. The advdec line is a key level, too. Usually if it holds high this long into the day, it's pretty much going to do it the rest of the day, but this isn't a usual day, either, I don't think.

Tab Gilles : 10/28/2005 1:05:35 PM

This market recently has been a tough one with both big daily moves in both directions. Making the April bottom look fairly easy. The only point of market action like this is to shake everybody out of trading positions. Most traders will not stick with their positions. Today proving to be another whipsaw day. So this is obviously a critical few days of trading coming up.

$NDX 1520 level as I highlighted earlier today is going to be a key support level. Link Link Link Link

Linda Piazza : 10/28/2005 1:05:20 PM

The OEX did produce a 30-minute close beneath the 30-minute 100-ema, but only minimally so, and now the OEX zooms back above both the 100- and 130-ema's, at 549.92 and 550.19, respectively. No new HOD yet. The advdec line is currently retesting the line that had been support on the first dip today, seeing if it will now hold as resistance. So far, it is, but only tentatively.

Jeff Bailey : 10/28/2005 1:04:07 PM

01:00 Market Watch found at this Link

Jeff Bailey : 10/28/2005 1:00:44 PM

Spending Cuts ... House Panel approves $3.7 billion in agriculture spending cuts over 5 years.

Agrees to eliminate "Step 2" cotton subsidies.

Linda Piazza : 10/28/2005 12:58:25 PM

Advdec line turning lower. If it had pushed all the way to the day's high again before doing so and had signed bearish divergence value/RSI divergence, I would have called a new bearish play, but we didn't get that stellar setup. Since other charts tell me there's the potential for some chopping around this afternoon, I wanted the stellar setup. That right shoulder band might be higher than I'd previously thought, perhaps only down to 549.20 or so, if the scenario even plays out.

Jeff Bailey : 10/28/2005 12:54:06 PM

Libby (update) ... Indicted on obstruction of justice, false statement (2 counts), perjury (2 counts)

Linda Piazza : 10/28/2005 12:52:49 PM

Advdec line slipping beneath that support that bounce it earlier today. It's possible that it could drop toward 1000 again, but 1620 is also support, and it's now at 1804.

Jeff Bailey : 10/28/2005 12:51:24 PM

Vice President Cheney's Chief of Staff Libby Indicted on 5 counts ...

Linda Piazza : 10/28/2005 12:50:30 PM

OEX testing the 30-minute 100-ema after having pushed above the 30-minute 100/130-ema's, both. It's now at 549.96 as I type, with that average at 549.90. It would not be a good thing to close a 30-minute period back below that MA, although I still question whether there might not be tight choppiness this afternoon.

Linda Piazza : 10/28/2005 12:49:05 PM

Advdec line testing that support right now, the support that bounce it earlier this morning.

Linda Piazza : 10/28/2005 12:45:28 PM

The advdec line is dipping to the support that has held it all day, now at 1864 with the advdec line at 1954 as I type, QCharts value.

Linda Piazza : 10/28/2005 12:34:09 PM

I don't look at the advdec line the way everyone else does, so sometimes when there's strength is the very time that the advdec line is hitting resistance. It did this morning. Right now, the picture is a bit ambiguous. As long as it's finding support at a line now at 1745, it's maintaining its overall bullish trend for the day, but there now could be resistance near 2650, too, and could be another pullback toward support, possibly into 1745-1830 or possibly deeper, as deep as 943. As I said, there's a mixed picture. There has not yet as been bearish divergence as the advdec line climbed from its LOD because it's so far climbed into a lower high and so there's not bearish divergence with a lower RSI high, too. The only divergence is that the advdec line failed to hit a new high while the OEX price did just that. My further worry for bulls is that scenario that I pointed out earlier, with a possible chopping around for the rest of the day between the 550-548-ish zones, with the OEX of course climbing a little higher than I thought it would, and any uncertainty related to the market's reaction to these possible indictments.

Jeff Bailey : 10/28/2005 12:33:44 PM

SOX.X 419.09 -1.99% ... reclaims WEEKLY S2

Jeff Bailey : 10/28/2005 12:29:42 PM

Corning (GLW) $18.95 -0.47% Link ...

Jeff Bailey : 10/28/2005 12:28:45 PM

Dow Chemical (DOW) $45.80 +1.32% Link ... Company said recent venture between it and Corning help Q4 profit grow 46%. Dow Corning makes silicon-based products for the life sciences, electronics, semiconductor and solar energy industries.

Linda Piazza : 10/28/2005 12:27:31 PM

Reader Joe has provided me with the information he calculated on the repo amount today. He believes that there was a drain of 3.5 billion, based on 12.5 billion expiring and a 9 billion repo. Thanks, Joe, for the information. Note to readers: I don't usually follow the repo information, so haven't verified this for myself.

Jeff Bailey : 10/28/2005 12:26:07 PM

National Oil Well (NOV) $60.64 +2.84% Link ... rebounds from session low of $58.01 after the oil equipment maker said Q3 profits tripled, driven by strong demand for its drilling equipment as oil companies continued to increase output.

Jeff Bailey : 10/28/2005 12:23:00 PM

Avon Products (AVP) $28.29 +14.48% Link ... Said Q3 profits fell 7% as US sales slipped and margins declined. However, the world's largest seller of cosmetics and other beauty products still beat Wall Street's consensus.

Jeff Bailey : 10/28/2005 12:16:43 PM

12:00 Internals found at this Link

Jeff Bailey : 10/28/2005 12:14:43 PM

Swing trade put stopped alert on the remaining 1/2 position in the KLA-Tencor KLAC Nov. $47.50 Puts (KCQ-WT) at the bid of $2.60.

KLAC $45.32 -4% ...

Linda Piazza : 10/28/2005 12:09:13 PM

You know, I heard a similar discussion to the one going on, on the Futures side (Mark and Marc on profits for oil majors) on drug company profits the other day. The gist of that discussion was that drug companies have been successfully painted as bad guys although it's so costly to develop new drugs and they are subject to generics then coming in and taking profits, so that new drugs always have to be in the pipeline. I don't know what the answer is, because I know what problems people with chronic illnesses (a close relative with diabetes, for example) have with the costs of their medications. However, with a granddaughter with a probable metabolic disorder, but one so rare that they haven't yet identified which it is, I want those drug companies to make enough money that they can afford to take risks and have treatments in the pipeline for children like her. There's never one right or wrong answer, is there?

Jeff Bailey : 10/28/2005 12:07:02 PM

12:00 Market Watch found at this Link

Linda Piazza : 10/28/2005 12:02:40 PM

OEX Keltner picture: The OEX has pushed slightly above the 30-minute Keltner resistance at 550.06 and looks as if it might close the 30-minute session above that. It's got more resistance, currently at 550.74, but this looks like a strong close to the current 15-minute and 30-minute period. Bulls do not want a quick reversal below 550, however, and particularly not below 549.72. If not, there's the possibility of a move up toward 552.34, although I'm not certain of how sustainable the rally might not be with some uncertainty this afternoon and with other charts suggesting the possibiltiy of some choppiness. However, maybe the OEX is going to forego the second inverse H&S and just charge up toward the target of the next, toward a retest of the bearish wedge it fell through earlier this week. I see mixed evidence on some charts, but am certainly glad that I got everyone out of that bearish play, just in the nick of time!

Jeff Bailey : 10/28/2005 12:06:55 PM

Top headline ... Dow Industrials (INDU) Link jumps 98 points as U.S preliminary GDP stronger than expected. Mexico's Central Bank lowers overnight rate 25 bp as inflation fears subside.

Jeff Bailey : 10/28/2005 11:57:41 AM

Petroquest Energy (PQUE) $9.84 -2.08% Link ... Reported quarterly earnings and revenue below consensus.

Jeff Bailey : 10/28/2005 11:56:21 AM

Chevron (CVX) $56.08 -0.74% Link ... Said Q3 profit rose 12% as energy prices and recent acquisition of Unocal helped the company overcome damage to its Gulf Coast facilities during hurricane Katrina and other storms.

Linda Piazza : 10/28/2005 11:54:32 AM

Advdec line still headed higher, although not yet above the previous HOD. I mentioned earlier that this could be a setup similar to that on 9/09, and it still could. So far, the advdec line continues to bounce from above support currently at 1365, with the advdec line now at 1940.

Linda Piazza : 10/28/2005 11:51:18 AM

OEX approaching and maybe passing up a little another neckline level for a potential inverse H&S. This would be a H&S with this morning's smaller version now making up the head of the bigger one. If this scenario plays out, there now might be some chopping between the 548-550-ish zone for a while, with that being the zone that formed the left shoulder.

Jeff Bailey : 10/28/2005 11:48:45 AM

Archer Daniels Midland (ADM) $24.69 +6.19% Link ... Reported worse-than-expected 30% decline in fiscal Q1 earnings as damage caused by hurricanes Katrina and Rita hampered grain sales.

Jeff Bailey : 10/28/2005 11:46:35 AM

Bristol Myers Squibb (BMY) $20.98 -3.18% Link ... Posted Q3 profit growth of 27%. Lowered guidance for 2005 fiscal year.

Jeff Bailey : 10/28/2005 11:45:11 AM

Provident Financial Services (PFS) $17.43 +1.39% Link ... Reported Q4 net income increase of nearly 12%. Company attributed performance to its "disciplined response to the challenges of the current operating environment."

Linda Piazza : 10/28/2005 11:43:23 AM

Earlier this morning, the advdec line bounced from support that's currently at about 1230. Watching to see if it does the same now. It's at 1520 currently, with that support line rising toward it.

Jeff Bailey : 10/28/2005 11:42:53 AM

Federal Signal (FSS) $16.20 +1.00% Link ... Reversed year-ago Q3 loss, helped by an asset-sale gain.

Linda Piazza : 10/28/2005 11:42:22 AM

The OEX's pattern on its daily chart certainly begins to look like a diamond, doesn't it? These are typically topping formations, though, coming after a climb, and not bottoming ones and so I'm not sure whether to believe it's a reversal signal or not. If it's a diamond (in the rough--couldn't resist), then it may have some more narrowing of the range to go before it completes, so there could be some choppy days still ahead.

Jeff Bailey : 10/28/2005 11:41:27 AM

Eldorado Gold (AMEX:EGO) $2.95 +0.68% Link ... Q3 loss widened on higher operating costs and depreciation at its Sao Bento mine in Brazil.

Jeff Bailey : 10/28/2005 11:39:30 AM

National Home Health Care (NHHC) $9.25 -13.95% Link ... Reported Q3 net income of $761,000, down 37% from $1.21 million in same period last year.

Jeff Bailey : 10/28/2005 11:37:51 AM

Overstock.com (OSTK) $33.48 +1.73% Link ... Q3 loss widened despite a 64% increase in revenue as operating expenses more than doubled.

Jeff Bailey : 10/28/2005 11:36:20 AM

La Quinta (LQI) $8.32 +6.53% Link ... Reported Q4 profit which was helped by a 32% jump in revenue. Company said it expects Q4 and full year revenue above Wall Street's view.

Linda Piazza : 10/28/2005 11:33:24 AM

Here's the push higher, toward 550. I'm not sure that the OEX will reach that high, but this current push fits one possible scenario I outlined earlier. Note: Although the OEX has reached a higher high, the advdec line has not, and that's a form of bearish divergence. However, there's a chance now that the advdec line will just cling the rest of the day to a channel line now at 1574, with the advdec line now currently at 1547, and so the signals just aren't clear enough for me to call a play either direction right now.

Jeff Bailey : 10/28/2005 11:31:25 AM

Anglogold Ashanti (AU) $39.29 -3.10% Link ... RBC cuts bullish price target to $38 from $42. Downgrades to "underperform."

Linda Piazza : 10/28/2005 11:25:04 AM

OEX retesting the five-minute 100/130-ema's at 548.62 and 548.99, respectively, with the 50% retracement of the rally off last week's low into this week's high just above, at 549.26. That inverse H&S that we were watching earlier is lopsided now, with the right shoulder dipping far deeper than the left, but it may still be a viable formation. Here's what I think, though. I think this five-minute inverse H&S could actually eventually be the head of a larger formation. If the OEX were to rise to 550, I wouldn't be surprised to see it then pull back and chop around, perhaps for the rest of the day, if the new right shoulder were to be symmetrical to the left. So, with that possible scenario--a bounce up to 550, and then some chopping around between the 550-548-ish level, I'm going to be leery about posting any official plays. I'd need to see a stellar setup.

Jeff Bailey : 10/28/2005 11:23:01 AM

KLA-Tencor (KLAC) $45.15 -4.25% ... back to test session highs. Low/high so far $44.03/$45.21.

KCQ-WT are $2.80 x $2.90

Jeff Bailey : 10/28/2005 11:19:59 AM

Industry Winners Fish/Livestock +3.28%, Waste Management Services +1.89%, Appliance/Tool +1.58%, Airline +1.55%, Tobacco +1.51%

Industry Losers Coal -4.67%, Constructiion/Raw Materials -2.28%, Oil/Gas Integrated -1.18%, Semiconductors -1.18%, Computer Hardware -1.15%

Jeff Bailey : 10/28/2005 11:17:02 AM

10 Most Active ... MSFT $25.44 +2.33%, QQQQ $36.06 +0.10%, QCOM $40.85 -5.11%, SPY $118.65 +0.45%, INTC $22.94 +0.43%, JDSU $2.05 +6.77%, LU $2.78 +1.09%, SMH $32.82 -1.70%, IWM $62.47 +0.45%, MXIM $34.00 -12.73%

Linda Piazza : 10/28/2005 11:16:51 AM

Okay, advdec line approaching Keltner resistance at 1500. I'm going to be interested in seeing how it behaves near that level. Certainly would like to see some strong signal set up here, but there's a possibility that the advdec line will behave as it did on the 9/9, barely dipping, not quite touching the strongest support, and then climbing the rest of the day. The setup doesn't look exactly the same, but close enough that I'm going to have to see strong signals to suggest another bearish play. The trouble is that on 9/09, the advdec line was showing bearish divergence all day long while climbing, so no bullish signal set up again, either. So, there may not be another signal on my methodology. We'll just have to see.

Jeff Bailey : 10/28/2005 11:13:42 AM

11:00 Internals found at this Link

Linda Piazza : 10/28/2005 11:13:21 AM

And there goes the OEX higher, as the advdec line was suggesting it might do. Aren't we glad we took that exit earlier as the advdec line approached support?

Linda Piazza : 10/28/2005 11:11:48 AM

OEX Keltner picture. The OEX is finding resistance on 15-minute closes at a Keltner line currently at 547.47. As long as it's doing that, it's vulnerable to a decline to 545.80-545.97. A similar setup is showing up on the 30-minute chart, with the OEX findign resistance on 30-minute closes on the Keltner line currently at 547.68 and looking vulnerable to 545-545.57 as long as it continues doing that. I'm just not confident of that picture right now, with the advdec line trying to bounce again. I'm watching for a test of 1500 or so on the advdec line, QCharts value, to see how that test is handled. Advdec line now at 1225.

Linda Piazza : 10/28/2005 11:04:50 AM

Thanks, Marc. (See Marc's 10:53:19). Here's what I'm watching: Link These almost always result in profitable plays, but they have all the disadvantages I've mentioned. Because they're based on this line, the market timing for the OEX isn't exact. There can be large unrealized losses before the OEX finally follows the lead of the advdec line. In my own trading, that's okay because I'm not going to risk a huge percentage of my trading account on these, I have a big enough account that I can daytrade in and out, and some of our readers don't, and I've had enough experience with these that I trust them. However, in the MM, I have to post OEX-based exits, and it's more than possible that the OEX might have tried to front-run the advdec line today, for example, and it could have popped above my posted stop although the play was still viable.

Jeff Bailey : 10/28/2005 11:02:08 AM

11:00 Market Watch found at this Link

Jeff Bailey : 10/28/2005 10:55:48 AM

Rocky Shoes & Boots (RCKY) $24.46 +0.69% Link ... outdoor footwear maker.

Jeff Bailey : 10/28/2005 10:54:42 AM

Deckers Outdoor (DECK) $18.00 -15.25 Link ... outdoor footwear maker.

Linda Piazza : 10/28/2005 10:52:15 AM

Remember that we have that paperwork, whatever paperwork might mean, due from Fitzgerald at noon.

Linda Piazza : 10/28/2005 10:51:23 AM

OEX Trade Recap
Bearish entry at OEX 548.10. Exited partial position at 547.54. Exited the rest of the position at 546.62.

This is the way these trades usually work for me, and it's possible to benefit from them with high-delta options. This one actually could have benefited more, as I think it's possible that we'll see even more downdraft, as the advdec line could have continued toward 200-300 before it really bounced, but I wanted to bring you out of the play with a profit. If there is another advdec line bounce, I'll see if there's another bearish entry in the works.

Jeff Bailey : 10/28/2005 10:52:05 AM

Intl. Rectifier (IRF) $27.36 -19.64% Link ... crushed like grape.

Stock gaps down from yesterday's close of $34.12 to open $30.76 this morning.

Jane Fox : 10/28/2005 10:49:06 AM

AD line is now making new daily lows but both AD line and volume are still above 0 which gives the bulls the benefit of the doubt. On the other hand the VIX is supporting ES new daily lows so ...

Linda Piazza : 10/28/2005 10:47:27 AM

OEX Exit Point Alert
Exit the rest of the position. I'm worried about a repeat of the action from earlier this week as stronger advdec line support is touched, but the advdec line still drops and some might want to stay in and lowering their stops. I'm exiting.

Jane Fox : 10/28/2005 10:45:51 AM

Excellent trade Linda.

Jeff Bailey : 10/28/2005 10:44:46 AM

Bank of Mexico Allows 25 bp Decline in Overnight Rate ... DJ - Mexico's central bank said Friday it would allow the overnight rate to fall another 25 basis points.

The move was widely anticipated, following a report earlier in the week showing that inflation is quickly converging on the Bank of Mexico's target of a 3% annual rate.

On Monday, the central bank reported that the consumer price index posted a modest 0.19% increase during the first half of October, pulling down the annual rate down to a fresh record low of 3.1% from 3.5% at the end of September.

Thus, policy makers were expected to follow their pattern of easing at the second of the bank's twice-monthly meetings, having made no change at the first one. The overnight rate has been decreased in 25-basis-point increments three times in as many months, with the floor now set at 9%.

In its statement, the Bank of Mexico lowered its year-end forecast for annual inflation to around 3.5% from 4%, noting that overall inflation had come down in "a very important manner."

Linda Piazza : 10/28/2005 10:44:10 AM

OEX Exit Point Alert
Let's get ready to close this play. Stand by. Aggressive traders can keep it open, but I'm worried about an advdec line bounce from the levels being tested.

Linda Piazza : 10/28/2005 10:39:17 AM

OEX bears want to see the OEX produce a 15-minute close beneath the Keltner line currently at 547.64. OEX at 547.17 as I type.

Linda Piazza : 10/28/2005 10:38:14 AM

OEX Trade Signals
Here's where we're in the most danger of a bounce, or at least the most we've seen so far this morning. I think there's a decent chance of the advdec line dropping to about +300, but we should get a bounce somewhere through here to retest resistance.

Jeff Bailey : 10/28/2005 10:36:15 AM

The Houston Exploration Co. (THX) $50.54 -0.90% Link ... slips to lows of the month. Retracing 80.9% of its May low to September high.

Linda Piazza : 10/28/2005 10:34:23 AM

OEX Exit Point Alert
Take partial profits. Conservative traders exit total position.

Jeff Bailey : 10/28/2005 10:33:44 AM

Current OPEN MM Profiles found at this Link

Linda Piazza : 10/28/2005 10:33:40 AM

OEX Exit Point Alert
Prepare to exit partial position. Conservative traders exit all, if they didn't do so on the previous drop toward this level.

Linda Piazza : 10/28/2005 10:32:39 AM

Advdec line dropping toward support that has risen to 1370. QCharts value now 1626.

Linda Piazza : 10/28/2005 10:29:03 AM

Marc, I'll do some research with that this weekend. I've also wondered if it would work better using the SPX with this signal, because it's a broader index, but I know the OEX better.

Linda Piazza : 10/28/2005 10:27:39 AM

The OEX topped out this morning at its 10-sma, at 549.19, with the HOD 5 cents below that.

Linda Piazza : 10/28/2005 10:24:25 AM

First support for the advdec line has risen to about 1350-1360. Advdec line at 1691 as I type.

Linda Piazza : 10/28/2005 10:21:26 AM

The OEX is doing its right-shoulder thing for the potential inverse H&S on its five-minute chart. Goes without saying that those of us in a bearish play don't want to see this confirm. The neckline is at about 549.26, which happens to be the 50% retracement of the climb off last week's low into this week's high. It's also near the five-minute 100/130-ema's, at 548.89 and 549.25, respectively. OEX at 547.99 as I type.

Linda Piazza : 10/28/2005 10:18:15 AM

Okay, bears, on this advdec line bounce, you want to see the advdec line top out at about 2400, QCharts values.

Linda Piazza : 10/28/2005 10:17:26 AM

I still think it possible/likely that the advdec line will dip at least to 1300. It's at 1800 as I type, trying to steady, bouncing a little and bringing the OEX higher with it.

Linda Piazza : 10/28/2005 10:16:20 AM

OEX Exit Point Alert
Conservative OEX bears (conservative "aggressive" bears" were just advised to exit here, ahead of a possible OEX bounce, when the OEX was at 547.74. I was watching the 555 put, and it should have been possible to eke out a minimal profit. Play still open for aggressive, aggresive bears.

Linda Piazza : 10/28/2005 10:14:00 AM

Alert: I think it's possible/likely that the OEX will bounce soon. If you're conservative, exit now. You should be able to get a little profit if you bought a high-delta option.

Jeff Bailey : 10/28/2005 10:13:18 AM

10:00 Internals found at this Link

Yesterday's Internals found at this Link

Linda Piazza : 10/28/2005 10:12:15 AM

Potential for an inverse H&S on the OEX's five-minute chart, so bears want to see the OEX dip below the 547.60-ish right-shoulder level. OEX at 547.74 as I type.

Linda Piazza : 10/28/2005 10:11:30 AM

Advdec line still dropping. That's still what we want, but of course we want to see the OEX drop with it. I'm going to be carefully watching the +1300 level, as I think that's one place that might prompt a bounce in the advdec line and in the OEX, too. Advdec line now at +1782, QCharts value.

Linda Piazza : 10/28/2005 10:08:13 AM

OEX Trade Signals
The advdec line is still acting fine for the bearish play, and was showing some bearish divergences on the five-minute chart. It may still do its one-more-climb thing and bring the OEX up with it, perhaps up further into that 549-550.50-ish zone. That's the difficulty with using this methodology to post trades on the OEX because the stops must be based on the OEX for the MM. A trade that might otherwise have been profitable (our second trade this week) is stopped out on the OEX-based stop, but still be a workable trade on the advdec line basis and ultimately prove profitable. I did not exit with readers in that second play this week but I was seeing a huge unrealized loss before the play turned profitable, one of the shortcomings of this methodology, one I warned about. I need feedback from readers as to how wide of stops they can handle. I'm afraid that an otherwise profitable methodology will prove unprofitable if I have to keep those OEX-based stops too narrow.

Jeff Bailey : 10/28/2005 10:03:48 AM

10:00 Market Watch found at this Link

Linda Piazza : 10/28/2005 10:03:03 AM

OEX Entry Point Alert
Entry on bearish play at OEX 548.10.

Linda Piazza : 10/28/2005 10:00:26 AM

OEX Entry Point Alert
Aggressive traders only. Enter a bearish trade now. Stop 550.60. Be prepared for a possible test of that area, still.

Linda Piazza : 10/28/2005 9:56:07 AM

OEX pushing up toward 549.34-549.93 resistance on the 15-minute chart. First support at 547.51. Thirty-minute resistance at 550.52-550.83. Both look strong.

Linda Piazza : 10/28/2005 9:53:42 AM

Not much pullback in the advdec line but some. May not get the stellar setup I want before a bearish entry, but I'd rather you not be in the market today than take a play I suggested if the setup wasn't absolutely pristine. I think the advdec line is going to pull back, and I think it will take the OEX down with it, although I'm not sure whether it's going to be just a pullback or a retest of yesterday's low, but I would like the OEX to be closer to 549-550 and I would like the advdec line to punch a little higher first, signaling bearish divergence with RSI while it did so. It often does give such signals.

Jeff Bailey : 10/28/2005 9:52:08 AM

Univ. Michigan Final Oct. Sentiment ... 74.2 vs. Sep. 76.9 report.

Oct. Final Expectations 63.2 vs. Sep. 63.3.

Linda Piazza : 10/28/2005 9:50:48 AM

Final University of Michigan number 74.2, as the Futures writers have reported.

Linda Piazza : 10/28/2005 9:48:33 AM

OEX pulling back toward the 15-minute 21-ema at 548.16. The advdec line isn't really pulling back any. What I'd like to see it do is pull back only slightly then print a slightly higher high with bearish divergence. This is a crazy environment with the Fitzgerald news due at noon (paper release) and 2:00 (conference).

Linda Piazza : 10/28/2005 9:45:10 AM

OEX Keltner view: The OEX approaches Keltner resistance at 549.46-549.96 on the 15-minute chart, with that resistance looking firm and with 30-minute resistance up to 550.46 looking equally firm. First support at 547.21. The OEX isn't far enough above that yet to give much cushion for a bearish play and the advdec line hasn't retreated any. I expect it to do so, but now on any bearish play, because of the strength today, we'd have to be wary of what happened if/when it retreated toward the flat-line area, and whether there would be a bounce again. Would have to be on our toes today if in any plays, going either direction. I'm not going to call a play unless I see a strong setup. Advdec line still climbing, and so there's no bearish setup as yet.

Linda Piazza : 10/28/2005 9:40:27 AM

No pullback in the advdec line as yet.

Jeff Bailey : 10/28/2005 9:40:10 AM

Swing trade put lower stop alert ... Lower stop on remaining 1/2 position in the KLA-Tencor KLAC Nov. $47.50 Puts (KCQ-WT) to $2.60.

KLAC $44.48 -5.82% ...

Linda Piazza : 10/28/2005 9:36:02 AM

We certainly have our bounce today! I'm watching the advdec line like a hawk. It is signaling that this move is way overdone to the upside, but there's been no retreat yet.

Jeff Bailey : 10/28/2005 9:33:38 AM

Swing trade put close out partial alert ... Let's close out 1/2 of the KLA-Tencor KLAC Nov. $47.50 Puts (KCQ-WT) at the bid of $3.30.

KLAC $44.55 -5.6%.

Linda Piazza : 10/28/2005 9:31:58 AM

Careful, OEX bulls. The advdec line opens in a position that suggest the possibility of a pop-and-drop day. We have to see a reversal come along with the current position, usually seen in the second or third 15-minute period of the day, though, or else we could just be having a strong bounce day. No reversal yet.

Linda Piazza : 10/28/2005 9:20:56 AM

I'm going to miss Jonathan's repo numbers today. If any missed his announcement yesterday, he's out until Tuesday morning.

Linda Piazza : 10/28/2005 9:04:45 AM

Back and forth, back and forth the OEX goes. It's not alone. Other indices perform the same way. We've had a few bearish days in a row now, but is it time for a bounce? Yesterday near the close it was setting up that way. If it does bounce early this morning, the bounce will be attributed to the GDP number, but in truth, charts were setting up the possibility already, a possibility that I mentioned late yesterday.

Yesterday, the OEX ended the day at 30-minute Keltner support. Unless it's going to trend down, that support usually holds, although it's often retested after first hit. In other words, we could see a bounce today that's reversed at some point, perhaps after an hour or two of climbing or perhaps after an even shorter time. I'm thinking of the Michigan Sentiment number due at 9:45, for example.

I had to scroll all the way back to June to find a time when the OEX didn't come back down to that 30-minute Keltner support line a second time after hitting it and then bouncing, and even then, prices essentially did that. Prices sent a candle shadow spiking up to next resistance and then formed several more along that support before finally bouncing, and not coming down again that time. So prices did bounce and come back, although the 30-minute candle bodies all sat along the support.

So, we obviously have to be aware of the possibility of a bounce up toward 547.88 and then a downturn again toward the 30-minute support. The advdec line was set up at yesterday's close to suggest a bounce this morning, so we'll look for that possibility, but I'm not sure that it's a bounce we'll be playing, especially ahead of the 9:45 number. We'll have to see where the OEX opens and how the advdec line sets up this morning. If we do attempt a long play, we're going to take first profits quickly, and I may just close the entire play below that 547.88 resistance or ahead of the 9:45 number, and step aside and watch, looking for a bearish entry, if that looks feasible. Unless there's a stellar setup, I just don't see myself risking posting such a trade.

I don't really much want to be long, especially ahead of another economic number, other than a scalping play with a stellar setup, until I see a retest of that 30-minute Keltner support with bullish divergences and have assured myself that there's not likely to be a breakdown through the channel. Right now, I'm watching first for a potential short-term bounce this morning, seeing how the advdec line sets up and going from there.

Linda Piazza : 10/28/2005 7:23:35 AM

Good morning. The Nikkei fell last night, as did all other Asian markets. European markets decline, too. As of 7:14 EST, gold was lower by $0.10 to $475.50, and crude, lower by $0.05 to $61.04. Our futures were mixed at that time, on either side of the flat-line level. More details about Asian and European markets follows in succeeding paragraphs.

After gaining Thursday, the Nikkei turned down again Friday. It did manage to close well off its low of the day, but still closed down 70.54 points or 0.53%, at 13,346.54. September's industrial production and household spending numbers disappointed. Industrial production had been expected to rise 2%, but instead rose only 0.2%. Household spending had been expected to rise 0.8%, but instead fell 0.2%. Still, by year's end, the growth in household spending is expected to achieve a 2.4% rise, the fourth straight year the number has increased.

After the releases, Japan's economics minister was reported to have concluded that Japan's economy would continue to expand, but at a moderate pace after having seen its fastest growth in 15 years during this first half, with this news having been reported in Marketwatch.com. Exporters fell, with many carmakers among the decliners. Automaker Honda had reported after the close of trading Thursday and Nissan was to report after the close Friday. Nissan's report showed an 8.1% increase in group net profit for the just-concluded quarter, and an unchanged full-year forecast. NTT DoCoMo also reported after the close, noting a lower churn rate and costs cuts when reporting profit that rose when compared to the first half of fiscal 2004. Toshiba also reported after the close, noting that demand for its flash-memory chips increased.

Other Asian markets turned lower, too. Taiwan Semiconductor fell in early trading after yesterday's earning's report. The Taiwan Weighted lost 0.50%, and South Korea's Kospi declined 2.20%. According to a Bloomberg article last night, by the middle of its session last night, the Kospi had dropped almost 8% off its record high reached on October 11. Hyundai and Samsung Electronics were among the exporters dropping. Singapore's Straits Times fell 0.43%, and Hong Kong's Hang Seng declined 1.15%. China's Shanghai Composite dropped 1.54%.

European markets decline, too, with carmakers showing the same weakness seen in Asian counterparts. Also contributing to the weakness in European carmakers was lowered guidance for 2005 consolidated operating margin from PSA Peugeot Citroen. France's October consumer confidence dropped to -30 from September's -29, disappointing those who had anticipated a climb instead. Some think that recent strikes and government labor reforms contributed to a drop in the component measuring future sentiment, with that component leading to the decline in the headline figure. Also in France, September's producer prices rose 0.6%, suggesting that France is seeing some of the same pipeline pressures discovered in other EU12 countries. An ECB member said in an interview yesterday that the central bank grows more worried about inflation. However, with this member and others pointing to energy costs as the main reason for their worries and with crude off its high, some speculate that rate hikes might be postponed a while yet. The October Eurozone sentiment survey surprised to the upside, rising to 100.5, rising from September's 98.6. The forecast had been for a rise to 98.8. Some point out that these numbers remain relatively low when compared to those seen in 2004, and that the components measuring industrial and construction confidence remain negative.

Early gainers included Deutsche Bank, rising after reporting earnings. GlaxoSmithKline also released an encouraging internal estimate of its full-year EPS, supposedly inadvertently, and that stock rose. UBS upgraded the stock, too. Vodafone rose after saying that it would acquire a 10 percent position in Indian mobile operate Bharti Tele-Ventures Limited.

As of 7:11 EST, the FTSE 100 had climbed off its low of the day, and was down only 0.70 points or 0.01%, to 5,182.10. The CAC 40 was lower by 32.39 points or 0.75%, to 4,304.02. The DAX was lower by 20.67 points or 0.43%, to 4,785.38.

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