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Jeff Bailey : 11/9/2005 1:37:15 AM

Program Trading Levels for Wednesday ... HL Camp & Company has their computers set for program buying at $+3.68 and set for program selling at $+1.56.

OI Technical Staff : 11/8/2005 9:59:59 PM

The Market Monitor has been archived.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

Disclaimer: Stocks discussed in the Market Monitor are for educational purposes only and any analysis is not meant to imply a recommendation for or against that stock. The analysts in this forum as on any other website are prohibited by the SEC from giving any specific advice to ANY individual trader. All information posted is for ALL readers and is not meant to be directed to any individual. Our analysts cannot answer any email questions regarding any specific stock. Please do not ask and please do not take offense if requests are denied.

Results posted in the Market Monitor are hypothetical and OIN does not claim that any reader achieved these exact results. Due to the lag time between research, writing, posting, uploading, reading and execution there will be differences between the actual signal given and the fill achieved by the reader. Fills may be better or worse but in most cases they will be different. The writers will make every effort to give advance notice of intended signals and indicate potential price targets. Your individual results may vary depending on your activity level and aggressiveness. This forum is intended as an education service only. Trading involves risk and should not be attempted by anyone not ready to accept this risk. By acting on any signal in this forum you agree and personally accept this risk.

Jeff Bailey : 11/8/2005 6:53:51 PM

Maybe Bonso Electronics (BNSO) $4.75 +4.16% Link ... is about to announce a "Bird Flu" chip.

Jeff Bailey : 11/8/2005 6:53:31 PM

Good Gravy! I dumped 300 shares for $1.00/share gain at $9.23 Link just the other day on this thinly traded small cap. You know them for their Cold-eeze zinc lozenges.

Today it becomes a "Bird Flu" play Link ...

Sell Mortimer! Sell! said Randolph Duke to Mortimer Duke. (Trading Places 1983)

Jeff Bailey : 11/8/2005 6:01:56 PM

Spinnaker Exploration (SKE) $64.64 (unch) Link ... Q3 revenue comes in at $84.1 million vs. 63.2 million in year-ago quarter. Diluted EPS of $0.63 vs. $0.26.

SKE in an energy company that explores for, develops and produces natural gas and oil in the Gulf of Mexico.

Linda Piazza : 11/8/2005 5:33:33 PM

CSCO doesn't report until tomorrow, according to some sources. I must have misunderstood a comment made earlier and didn't look it up for myself. I knew they reported this week.

Jeff Bailey : 11/8/2005 5:23:59 PM

Closing Internals found at this Link

Tab Gilles : 11/8/2005 5:22:08 PM

Google (GOOG) Possible pull back levels. Link

Jeff Bailey : 11/8/2005 5:15:43 PM

QQQQ 100,000 blocked at $40.22

Jeff Bailey : 11/8/2005 5:15:04 PM

QQQQ $40.14 +0.02% ... $40.21 extended session.

Jeff Bailey : 11/8/2005 5:14:01 PM

Pixar (PIXR) update $50.88 -3.54% ... Q3 EPS comes in at $0.22 vs. $0.19 in year ago period. Well ahead of consensus for $0.11.

DJ - Pixar (PIXR) contributed its 22% rise in third-quarter net income to its growing film library.

In a press release Tuesday, the computer-animated film company said net income rose to $27.4, or 22 cents a share, compared with $22.4 million, or 19 cents a share, a year earlier.

Wall Street expected 11 cents a share, according to the average of 17 analysts surveyed by Thomson First Call.

Revenue for the quarter ended Oct. 1 rose 3% to $45.8 million from $44.5 million, beating Wall Street's mean estimate of $30.6 million.

Extended session now $52.00

Jeff Bailey : 11/8/2005 5:07:31 PM

Merck (MRK) $29.37 -0.27% ... edges lower at $29.30. Gets subpoena from Illinois Attorney General. Subpoena seeks information on drug repackaging.

MRK said in its quarterly report filed with the Securities and Exchange Commission that it received the subpoena in September, and is cooperating with the investigation.

Jeff Bailey : 11/8/2005 5:04:20 PM

Integrated Device Tech (IDTI) $10.21 -0.68% Link ... pops to $10.88 on headline numbers.

Jeff Bailey : 11/8/2005 4:58:18 PM

Maverick Tube (MVK) $32.84 -1.52% Link ... Announces proposed sale and private offering of $220 million in Sr Sub Notes due 2025. Will use funds to repurchase common stock.

Jeff Bailey : 11/8/2005 4:50:12 PM

QQQQ $40.14 +0.02% ... marked higher at $40.20.

Jeff Bailey : 11/8/2005 4:48:37 PM

Pixar (PIXR) $50.88 -3.54% Link ... surging to $55.91 in extended session on headline numbers.

Jeff Bailey : 11/8/2005 4:47:18 PM

That wasn't one of the "better" CEO interviews I've seen of late. CEO of TOL $33.91 -13.95% Link saying "Don't cry for me. It isn't that tough." as his company's shares get smacked lower in today's trade.

Jeff Bailey : 11/8/2005 4:33:59 PM

Closing U.S. Market Watch found at this Link

Top 5 Industry Winners ... Jewelry/Silverware +2.29%, Fish/Livestock +1.16%, Oil Service +0.70%, Integrated Oil/Gas +0.63%, Oil/Gas Operations +0.60%.

Top 5 Industry Losers ... Construction Services -5.64%, Retail (Technology) -2.60%, Construction Raw Materials -2.54%, Motion Picture -2.36%, Retail Home Improvement -2.27%.

Jeff Bailey : 11/8/2005 4:07:08 PM

Buy Program Premium ... DIA $105.55, SPY $122.19

Jeff Bailey : 11/8/2005 4:08:46 PM

Current OPEN MM Profiles found at this Link

Today's Activity ... Swing traded long 1/2 bullish position in shares of Linear Technology (LLTC) at the offer of $33.96. Stop is $33.60 with target of $34.72.

Linda Piazza : 11/8/2005 3:54:38 PM

No break, so far, below the large triangle that's been forming on the OEX over the last couple of days, best seen on the 15-minute chart. This started with a H&S that dissolved. If you're holding overnight tonight, you're likely going to have to make your decision with the OEX inside that triangle, not breaking out either direction, unless there's a big move in the last few minutes.

Linda Piazza : 11/8/2005 3:45:55 PM

Bears want the advdec line to drop below -1700. It's at -1561 now, but end-of-day positioning ahead of CSCO earnings is going to take over soon, negating the importance of what we see on short-term charts.

Linda Piazza : 11/8/2005 3:43:59 PM

The advdec line action usually saves me from getting taken out on a stop-running move like that, but I got taken on that last one, persuading me to close the play officially. For those of you aggressive traders who elected to stay in with the original 564.07 stop, the advdec line is now testing the new ascending trendline off the day's low, threatening to break below it or perhaps even easing a little below it as I type. That's what you want to see, and now you want to see a deeper drop.

Jonathan Levinson : 11/8/2005 3:42:46 PM

QQQQ's daily cycle upphase holds a bearish kiss just below overbought territory. Within that cycle are the intraday cycles: the 60 min cycle, which has been in a weak downphase all day, and the shorter 30 min cycle, which is just now stalling in a weak upphase. Within those cycles is the short cycle, which is currently pointed up with little price traction. It all looks corrective, and direction is up for grabs. The volume breadth is bearish, but the fact that there has been no loss of price despite negative breadth all day actually looks bullish at this point. If forced to guess, I think that last Thursday's gap will get filled. But until we see a lower low and lower high for a session, the bias has to remain to the upside.

Linda Piazza : 11/8/2005 3:39:22 PM

Soon we'll get market-on-close orders and I hope the OEX dives for the benefit of those of you who stayed in a bearish OEX play with the original stop of 564.07. Our play is officially closed, however. Now you have to make up your mind if you're going to hold overnight or not, with CSCO earnings. We've seen CSCO-driven bounces and CSCO-driven declines, and there's not much of a way to know at this point which we'll get. As for the OEX, it's still finding resistance at least for now at the descending trendline off the 9/09 high and below the rising trendline off the April low. It's finding support at the daily 100/130-ema's, historical support near 561.23, and the daily 72-ema and 50-sma, all located in a tight range below the OEX, down to 559.54. There's not much different to say about its pattern than has been said lately. As long as it's finding resistance at those levels, our best bet seems to be that it will continue to find resistance at those levels.

Jeff Bailey : 11/8/2005 3:35:02 PM

BioCryst Pharma (BCRX) $12.44 -10.5% ... gett'n "plucked" toward the close.

Linda Piazza : 11/8/2005 3:30:37 PM

"They're vicious, they'll do anything to take you in," author Tom Williams says of professional market makers. That includes running the OEX above the declining trendline off yesterday's high. They've done it twice today, so that the trendline has to be revised, but then the OEX just comes back down to or below that trendline again. It's coiling, and this may have been just the latest and maybe even the last stop-running move to shake out the shorts before the thing keels over. I just couldn't leave readers with the possibility of a quick run-up into the close ahead of CSCO earnings, either being stopped at a worse place or else risking holding overnight with an open play.

Jonathan Levinson : 11/8/2005 3:28:23 PM

QQQQ has bounced back to R1 but has yet to clear it. A new short cycle upphase is in progress, but the number of false starts and early failures has me looking sideways at my indicators today. Volume breadth remains negative, -1.56:1 on the NYSE and -1.1:1 on the Nasdaq. Link

Linda Piazza : 11/8/2005 3:27:30 PM

OEX Trade Recap
Entered at OEX 562.25. First profit taken in OEX options when OEX was at 561.11, for a 1.14-point move in our direction. Exited rest at 562.65, for a 0.40 point move against our play.

Normally, I would have exited first thing in the morning when the advdec line hit the support shown in the chart linked to my 10:00:46 post. However, I've been trying to catch part of a larger move and didn't want to exit as long as the advdec line was holding resistance. And it was. Here's the chart: Link

Jane Fox : 11/8/2005 3:22:12 PM

I don't care how much the bulls posture as long as the AD volume and AD line are below 0 the bears have field position.

Linda Piazza : 11/8/2005 3:20:51 PM

OEX Exit Point Alert
Entered at OEX 562.25. First profit at 561.11. Exited rest at 562.65. Advdec line just attempted a breakout, although only into next resistance.

Jane Fox : 11/8/2005 3:20:24 PM

VIX to new daily lows.

Jane Fox : 11/8/2005 3:20:00 PM

Once again the bulls are rearing up and flexing their muscles. AD volume is rising and AD line is making new daily highs. Frustrating???

Linda Piazza : 11/8/2005 3:19:13 PM

OEX Exit Point Alert
Exit now. Aggressive traders can stay in with the original 564.07 stop, but the play is officially closed.

Jonathan Levinson : 11/8/2005 3:13:32 PM

Stepping away for 5 minutes.

Jeff Bailey : 11/8/2005 3:11:26 PM

03:00 Internals found at this Link

Jeff Bailey : 11/8/2005 3:01:57 PM

03:00 Market Watch found at this Link

Jonathan Levinson : 11/8/2005 2:54:35 PM

QQQQ 100-tick chart updated at this Link , holding below 72 SMA. Price continues to move sideways through a directionless intraday cycle setup.

Jane Fox : 11/8/2005 2:51:10 PM

AD volume continues to make new daily lows but AD line is hugging daily highs. Albeit as I stated previously an AD line at -806 does support a bearish AD volume but serves to make for choppy markets. Link

Jeff Bailey : 11/8/2005 2:50:22 PM

It would sure be handy if housing futures were traded at this point. They should be up and running in a couple of months.

Jeff Bailey : 11/8/2005 2:44:14 PM

March Fed Funds futures (ff06h) 95.50 (unch) .... 100 - 95.50 = 4.50% ... still predicting 100% chance of two more 25 bp hikes.

Jeff Bailey : 11/8/2005 2:46:15 PM

I think the bond market's reaction today, as well as that little tick higher in December Fed Funds futures is the MARKET thinking seriously about today's news out of TOL. Maybe some slight adjustments being made.

TOL is a "high end" builder. IE, more expensive homes.

Linda Piazza : 11/8/2005 2:40:08 PM

So close and yet so far. The OEX is sitting on the 10-minute 100-ema and just above the rising trendline off the mid-morning swing low on Friday. But it's bouncing from that support even as I type, with the support at 561.51 and 561.13, respectively. The advdec line bounces, too. Someone does not want that H&S to confirm on the OEX's 15-minute chart or for that trendline to be broken to the downside. I'm getting tired of putting that "exit now" signal in the window and then removing it.

Jonathan Levinson : 11/8/2005 2:29:04 PM

It certainly does. Stranger still has been that the liquidity picture depicted by the Fed and Treasury action has been exerting almost no discernable relation on the markets recently- Treasury drains (ie raising new cash) and repo drains have coincided with strong market days recently, where usually there would more of a discernable correlation. My only guess is that other players are active in the markets, possibly funds or central banks other than the Fed, or that I'm interpreting the data wrong.

Jeff Bailey : 11/8/2005 2:29:05 PM

Pacholder High Yield (PHF) $9.01 -0.11% .... calm. Would expect a BIG bid if market participants thought for a moment that Fed were to go on hold.

Jeff Bailey : 11/8/2005 2:27:37 PM

S&P Banks Index (BIX.X) 350.37 -0.66% ... not much reaction at this point.

Linda Piazza : 11/8/2005 2:27:17 PM

Potential inverse H&S now on the OEX's three-minute chart. Bears want to see the OEX drop below 561.20 to invalidate that formation.

Jonathan Levinson : 11/8/2005 2:25:11 PM

QQQQ spike a "bad tick" to 40.00, the most exciting move of the hour as price holds right on the 72 SMA between the pivot and R1. The intraday channels are sliding sideways here, volume running light. Link

Jeff Bailey : 11/8/2005 2:25:07 PM

It does seem strange doesn't it Jonathan? (02:02:13)

Jeff Bailey : 11/8/2005 2:22:44 PM

December Fed Funds (ff05z) at this Link ... I like to divide my retracement up into 10-different levels, each measuring a 10% probability of a Fed move. If Fed were to raise rates another 25 bp, the ff05z should/would drop to 95.75.

With QCharts, traders can "set al_rts" at their retracement levels. If traded, then should be al_rted to trade at any particular level.

Linda Piazza : 11/8/2005 2:20:12 PM

OEX Trade Signal
Play saved again, just barely. I had the "exit now" post in the window, watching carefully, ready to upload. Although the OEX broke above resistance, the advdec line didn't, so I held off posting that exit, but the play isn't safe yet, so stand by. The advdec line is just not dropping enough yet, although easing a little as I type. Exit now if this is making you too antsy. If advdec line support isn't broken this time, I may post an exit anyway.

Tab Gilles : 11/8/2005 2:19:26 PM

$NDX Link

$WTIC Link

Jeff Bailey : 11/8/2005 2:11:42 PM

December Fed Funds futures (ff05z) alert 95.85 +0.01% ... may be nothing, but ticking up here. 60% chance of 25 bp rate hike.

Hey! ... Fed commentary of late has been in regards to higher home prices being "inflationary."

Maybe today's news is taking its TOL?

Jeff Bailey : 11/8/2005 2:09:27 PM

Nortel (NT) $3.21 -2.71% ... breaks back below its rising 50-day SMA. Looks to challenge recent 11/02/05 relative low of $3.19.

Linda Piazza : 11/8/2005 2:05:34 PM

The advdec line did not break through support on that go-around. It's attempting a bounce from support again.

Jeff Bailey : 11/8/2005 2:02:48 PM

02:00 Market Watch found at this Link

Jonathan Levinson : 11/8/2005 2:02:13 PM

Ten year notes hold their gains and thirteen week bills their losses, with the ten year note yield (TNX) down 7.6 bps at 4.563% and 13-week bill rate (IRX) up 3 bps at 3.857%. The flatter yield curve seems strange in the wake of the 4-week and 3-year note auctions conducted by the Treasury today- the shorter dated paper showed less demand from foreign central banks and lighter demand overall compared to the 3-year note auction.

Linda Piazza : 11/8/2005 1:57:41 PM

The advdec is still headed down, but now testing support that extends down to -2000, so it needs to drop heavily, especially with the OEX now getting close to that rising trendline and other support . . . and the OEX bounced as I typed. Someone doesn't want it to violate that trendline as much as I want it to do so, only "they" have the ability to try to bounce it, and I can only watch!

Jeff Bailey : 11/8/2005 1:56:58 PM

BioCryst Pharma (BCRX) $13.14 -5.46% Link ... "Bird Flu" play challenges important near-term support above $13.00.

Jonathan Levinson : 11/8/2005 1:55:39 PM

Volume breadth drops to -1.94:1 on the NYSE, -1.84:1 on the Nasdaq.

Linda Piazza : 11/8/2005 1:52:21 PM

OEX Trade Signal
We want to see the OEX drop below the rising trendline that began forming about 10:45 on Friday, now just above 561, and then begin to drop more heavily because it's got lots of support just below that.

Jonathan Levinson : 11/8/2005 1:51:04 PM

QQQQ failed at 72 SMA/R1 resistance on that wavelet bounce, the wavelet (middle oscillator pane) reversing early. But there's no volume to punctuate any of these moves, and it feels like more of the same slot rattling we've seen since Thursday. A break of the pivot could change that, but with the short cycle indicators looking generally bottomy, it will take a strong move below 40.00 to suggest that this time is different. Link

Linda Piazza : 11/8/2005 1:49:56 PM

OEX Trade Signal
Play saved for now. Advdec line dipping a little, but the danger of an upside pop is not over yet. I've got the "exit now" post typed and am still ready to use it, if needed. I'd like to stay in, in case the OEX does roll down deeper and this is the day, but I don't want to keep running into these plays that see a first profit and then go bad for the rest of the position.

Jeff Bailey : 11/8/2005 1:49:17 PM

Linear Tech (LLTC) $33.70 -0.64% ... was looking at my option chains with UP/Down tick volume turned on. See 100 contracts (OI=6,363) traded DOWNTick at $0.15 on the Nov. $35 Call (LLQ-KG).

$35 - 0.15 = $34.85.

Linda Piazza : 11/8/2005 1:40:30 PM

OEX Exit Point Alert
Thinking about exiting unless the advdec line drops soon. I don't like the way the advdec line is acting and am afraid that it's going to burst through to the upside.

Jonathan Levinson : 11/8/2005 1:33:07 PM

QQQQ's volume is 63.4M shares so far today, less than 2M shares away from yesterday's total volume but still far from the 101.9M daily average.

Jeff Bailey : 11/8/2005 1:31:59 PM

Sport-Haley (SPOR) $5.90 +38.82% Link ... announced joint venture with Explorer Gear USA to manufacture and market Top-Flite branded apparel to Wal-Mart (WMT) stores in the US. Callaway has given SPOR its consent to use the Top-Flite license in connection with the LLC, subject to certain conditions. First significant deliveries are expected to be made in January.

Jane Fox : 11/8/2005 1:30:54 PM

TICKS +800. This is so frustrating - the AD volume is falling and TICKS are rising.

Jonathan Levinson : 11/8/2005 1:30:30 PM

Volume breadth holds negative, 1.68 declining shares for each advancing on the NYSE, while volume is evenly matched 1:1 on the Nasdaq.

Linda Piazza : 11/8/2005 1:29:23 PM

Answer to Reader's Questions: I received some questions from a new reader. It's always great to receive those questions, and I wanted to address some of my answers here. Other new readers might have the same questions.

Although I'm talking about OEX trades, I am referring to OEX options trades. We do not trade the OEX itself. Some traders have questioned me in the past about an IShare or ETF that might mimic the OEX. The OEF is one, but its volume is way too low for my liking. It's traded under 79,100 so far today, for example, compared to the SPY's 31 million shares! So, OEX options it is.

I've been covering the OEX's movements for a long while, while other commentators cover other indices, and so I'm most familiar with the OEX. Once those trades of the type I'm posting were posted with an "OEX/SPX/DJX/DIA/SPY" header, and traders could choose their preferred vehicle, entering the trade in the posted direction. As you know, the OEX, SPX and Dow sometimes trade with the same general shape, but there are differences. Choosing OEX bearish trades have perhaps not been the best lately because there's been some rotation into the "generals," the big caps that make up the OEX, so that's worked against our bearish trades. Still, many readers prefer the OEX over the SPX because of the cheaper options. My guidance on the OEX's and those of the futures traders on the SPX and Dow emini's help guide the traders who want to trade those vehicles.

Jane Fox : 11/8/2005 1:27:17 PM

AD volume continues to make new daily lows but the AD line is just refusing to do the same keeping the markets choppy.

Jeff Bailey : 11/8/2005 1:27:14 PM

Sport-Haley (SPOR) $6.11 +43.76% ... thinly traded golf apparel maker really got active just prior to 01:00 from $4.25 level.

Jonathan Levinson : 11/8/2005 1:24:59 PM

QQQQ bounces from the pivot at 40.10 leaving a lower doji spike on the 100 tick candle. The short cycle downphase continues but is losing momentum on the bounce, but bulls need a break above 72 SMA resistance at R1 of 40.23 to kick off a new upphase from here: Link

Linda Piazza : 11/8/2005 1:15:00 PM

Advdec line rolling down a little, but not enough yet. There's support near -2100 to -1850, and the advdec line needs to drop below that.

Jeff Bailey : 11/8/2005 1:12:01 PM

01:00 Internals found at this Link

Linda Piazza : 11/8/2005 1:11:28 PM

The OEX is dropping but the advdec line hasn't dropped much yet. Need to see confirmation.

Linda Piazza : 11/8/2005 1:09:28 PM

Advdec line currently testing the actual rising trendline off the day's low. It's already moved sideways out of the QCharts-drawn rising regression channel.

Linda Piazza : 11/8/2005 1:07:31 PM

OEX Exit Point Alert
On the shortest-term chart, the advdec line is set up in such a manner that support and resistance look equally weighted. It's preparing for a breakout one direction or the other, and doesn't give clues as to which it will be. As I type, the OEX is at 562.20, a few cents below our entry, and those who do not want to weather a possible bounce and a possible stop-out at a higher level should exit now. The play would not yet be stopped by my parameters, but it needs to actually perform well soon!

Jonathan Levinson : 11/8/2005 1:04:30 PM

Crude oil is down to a 5 cent gain at 59.525, natgas down .015 at 11.86.

Jonathan Levinson : 11/8/2005 1:03:26 PM

Foreign central banks took a respectable 5.26B of the 18B in 3-year notes auctioned today. The notes sold for 4.458%, and had a bid to call ratio of 2.42.

Jeff Bailey : 11/8/2005 1:02:47 PM

01:00 Market Watch found at this Link

Jeff Bailey : 11/8/2005 1:00:49 PM

Western Gas (WGR) $48.00 +7.25% Link ... Company's CEO saying coalbed methane production up 6% from second-quarter.

Linda Piazza : 11/8/2005 12:57:39 PM

The OEX is back at potential support again, but has confirmed a H&S on its five-minute chart. This H&S forms the top of the right shoulder of a larger H&S, seen on its fifteen-minute chart. This often happens. The downside target for the small one is about 561.03, which, if met, would bring the OEX all the way down to a test of the rising trendline that's been forming under Friday's 10:30-ish low, several other swing lows, and this morning's early low.

Jane Fox : 11/8/2005 12:54:26 PM

AD volume to new daily lows and the bears reassert their grip on the market.

Jonathan Levinson : 11/8/2005 12:52:10 PM

Volume breadth is -1.55:1 on the NYSE, -1.01:1 on the Nasdaq.

Jonathan Levinson : 11/8/2005 12:51:36 PM

The Qs have broken their rising trendline off the session lows, but did so on light volume. However, as I type, 72 SMA support is failing, stalling the upturn in the 30 min channel. Below 40.12, the 30 min channel will begin to turn down. Link

Linda Piazza : 11/8/2005 12:45:54 PM

The advdec line is now dropping just minimally out of the QCharts-drawn rising regression channel in which it's moved off the day's low. It's about to test the actual rising trendline off that low, at about -1650 currently, but still climbing, but there will be another hurdle for bears, as support may be firming a little in the -2050 to -1800 zone. Advdec line at -1511 as I type.

Jane Fox : 11/8/2005 12:41:45 PM

Just changed my 12:41 post from gripe to grip - dang the spell checker didn't get that one.

Jonathan Levinson : 11/8/2005 12:37:05 PM

Volume has thinned as QQQQ pulls back off its high, currently down to 40.25. 72 SMA support is up to 40.20. Link

Linda Piazza : 11/8/2005 12:32:17 PM

The advdec line is still climbing in its bear-flag looking formation, off today's low. It has so far been pausing beneath a 38.2% retracement of the decline off the last swing high yesterday into today's low and bears would like to see it continue to find resistance there, at about -1150 and then fall out of that bear flag. The 50% retracement is at about -700. The advdec line has already climbed just a bit above a 50% retracement of today's range, but the Fib bracket off the whole decline looks to be most relevant because of the way the advdec line acted at a 19.1% retracement and now at this one. I think.

Jane Fox : 11/8/2005 12:41:05 PM

Until the AD line and volume print above 0 I don't see the bulls with a firm grip on the reins but they are sure tugging at them.

Jeff Bailey : 11/8/2005 12:30:04 PM

Linear Tech (LLTC) $34.01 +0.26% ... 60-minute interval chart at this Link ... Conventional use of retracement that HUMANS will use. WEEKLY Pivot levels that COMPUTERS will use.

Linda Piazza : 11/8/2005 12:29:05 PM

Next OEX resistance from 562.82 to 563.09. OEX at 562.62 as I type.

Jane Fox : 11/8/2005 12:28:30 PM

TICKS +800

Jonathan Levinson : 11/8/2005 12:30:55 PM

Foreign central banks purchased 1.86B of the 22B in 4-week bills auctioned this morning, a weak showing. The bills sold for 3.82%, with a bid to cover ratio of 2.02. The bid to cover was the lowest this quarter and below the quarterly average going back to 2001. The rate of 3.82% was highest of the quarter and above the quarterly averages going back to 2001.

Jonathan Levinson : 11/8/2005 12:19:51 PM

QQQQ's pulling back from its 40.35 high, a wavelet cycle downphase almost complete. There hasn't been a clear move in the 4 sessions since its opening gap up last Thursday. So, possible island top or not, the steady climb higher is the trend until proven otherwise. A break of the session low on volume could signal a break down, while a break above 40.45 would violate upper rising channel resistance this unfilled gap from Thursday. Link

Jane Fox : 11/8/2005 12:18:48 PM

My al_rts were once again not working again on my TICK charts and I have missed multiple TICK reading of +800. Hopefully I have it fixed so I will not miss any more.

Jeff Bailey : 11/8/2005 12:16:04 PM

12:00 Internals found at this Link

Jane Fox : 11/8/2005 12:06:19 PM

Dateline WSJ The Supreme Court ruled unanimously Tuesday that companies must pay plant workers for the time it takes to change into protective clothing and walk to their work stations. The issue was one of two that justices settled in a pair of unanimous decisions, the first rulings under the leadership of Chief Justice John Roberts in the new fall term. Chief Justice Roberts didn't write either one.

In a defeat for business, the court said that while employers aren't required to pay workers for time spent changing clothes, they must pay for the donning of "integral" gear and the time it takes workers to then walk to the production area. The court, in a ruling by Justice John Paul Stevens, upheld a decision of the Ninth U.S. Circuit Court of Appeals in favor of workers at a Pasco, Wash., meatpacking plant owned by Tyson Foods Inc. and overturned a ruling by the First Circuit Court of Appeals in Boston, which had favored a Barber Foods chicken-processing plant in Portland, Maine.

The worker-pay case was the first appeal argued this term, on Oct. 3, and the first in which Chief Justice Roberts was presiding on the court. It was something of a throwback to the early 20th century, when disputes over wages, working conditions and hours dominated the docket.

Jeff Bailey : 11/8/2005 12:05:48 PM

12:00 Market Watch found at this Link

Jonathan Levinson : 11/8/2005 12:03:46 PM

Volume breadth holds negative -1.52:1 on the NYSE, up to neutral-positive at +1.1:1 on the Nasdaq.

Jeff Bailey : 11/8/2005 12:03:36 PM

Bullish swing trade long alert ... for 1/2 bullish position in Linear Tech (LLTC) $33.96 here, stop $33.60, target $34.72.

Jeff Bailey : 11/8/2005 12:02:41 PM

Check out LLTC ... get your WEEKLY Pivot levels on it, slap a conventional retracement from the Nov. 1 low to recent high of $34.45 ... yep, pulled right into its 61.8% of $33.46 this morning and bounced strong.

Linda Piazza : 11/8/2005 11:59:24 AM

Could be a pullback soon in the OEX, and we certainly want it to be a deep one if it occurs.

Jane Fox : 11/8/2005 11:58:45 AM

VIX and TRIN to new daily lows. Bears should be on the defensive now.

Jane Fox : 11/8/2005 11:58:05 AM

Another bullish development - AD volume has retraced 50% of its daily range. The bulls are getting a footing and getting bolder.

Jeff Bailey : 11/8/2005 11:56:36 AM

Doh! AMAT $17.74 +3.62% ... 4-letters

Jeff Bailey : 11/8/2005 11:56:03 AM

LSI Logic (LSI) $7.88 -4.60% ... downgraded by Lehman Bros. before this morning's open. Tim Luke saying he doesn't believe the benefits of recently announced restructuring will be seen for at least another 6 months.

With QQQQ $40.34 +0.49% closing in on 52-week high, looking for a chip long. LSI may not be a candidate today.

Linda Piazza : 11/8/2005 11:53:59 AM

The OEX just gapped above the descending trendline off the 9/09 high, at least if I've drawn it correctly. It's got its own potential H&S on its 15-minute chart, with a head at yesterday's high and with a right-shoulder level at about 563.50 or lower. CSCO invalidated its H&S this morning and now tests the resistance it faced when consolidating during the late afternoon yesterday, from 17.95-17.98. It's at 17.95 as I type.

Jonathan Levinson : 11/8/2005 11:53:14 AM

QQQQ's 30 min cycle downphase has reversed above oversold territory, the 60 min cycle downphase stalled above the midpoint of its range. These failures to follow through on otherwise bearish (bearish divergent, in fact) downphases is itself a bullish development. QQQQ continues to hold right at the week highs on horizontal resistance at the top of a possible bullish rising triangle printed over the span of the past 6 months: Link

Linda Piazza : 11/8/2005 11:46:02 AM

OEX -562.60 and then perhaps even 563.01 looks possible, with that the next Keltner resistance the OEX will face. OEX at 562.41 as I type.

Jonathan Levinson : 11/8/2005 11:41:29 AM

Crude oil holds a 20 cent loss at 59.275, 32.5 cents off its low. Gold is up 3, however, at 463.40 and back above horizontal/neckline support. If this is a bull wedge break, then the implied target could be back up at 476, the previous top of the right shoulder: Link

Jeff Bailey : 11/8/2005 11:36:34 AM

Taser Intl. (TASR) $7.90 -0.25% ... here's a bar chart I had been following and recently trading from the bullish side (buy, run, write Nov. $7.50 Calls) at this Link ... Trader Anthony had a question as to "what is your plan?"

Note: Not shown is WEEKLY Pivot Levels ... $5.41, $6.69, Piv= $7.33, $8.61 (Monday's high was $8.61), $9.25.

Jonathan Levinson : 11/8/2005 11:29:59 AM

Volume breadth is up to -1.7:1 on the NYSE, -1.05:1 on the Nasdaq.

Linda Piazza : 11/8/2005 11:29:28 AM

OEX Trade Signal
I came so close to closing out that bearish play a few moments ago, but someone has a hotline through to my brain and ran this up as I was pondering whether I should do that. I think CSCO enthusiasts are partly to blame as CSCO attempts to invalidate that H&S on its 15-minute chart. Watching CSCO was one reason that I decided I might want to close the position. However, this move has brought the advdec line up into the next level of potentially strong resistance and a stronger one, and we'll see if it holds.

I'm used to closing these plays out sooner, but I'd like to hold on if possible in case this is the start of a bigger move down and not just a repeat of recent early morning dips. Some things were different about this morning's drop. However, the OEX is back near the entry level this morning, and you might exit any time you get nervous. I've already suggested earlier today that conservative traders exit the full position, when the OEX was lower than it is now.

Jonathan Levinson : 11/8/2005 11:26:33 AM

Back to find QQQQ challenging yesterday's afternoon high on a break above R1. 30 min channel resistance has risen to 40.33, the short cycle aborting a downphase in the early going: Link

Jane Fox : 11/8/2005 11:26:37 AM

The next thing the bulls need is the AD volume to 50% of its daily range then both AD line and volume back into positive territory (Ya right!)

Jane Fox : 11/8/2005 11:23:12 AM

Another bullish development - AD line to new daily highs but you have to factor in the fact that new daily high was still at a bearish -850

Linda Piazza : 11/8/2005 11:18:16 AM

Resistance is beginning to firm above the advdec line's current -1950 level. That resistance stretches from -1850 up to -1700, and it's being tested now. We want to see it hold.

Jane Fox : 11/8/2005 11:16:10 AM

The reason we are not seeing a big selloff is because the other internals like the VIX and TRIN are not supporting the bearish AD line and volume and we will continue to have bearish but choppy markets until they all get on the same page.

Jane Fox : 11/8/2005 11:14:04 AM

AD volume continues to fall and the bears continue to have nothing to worry about.

Linda Piazza : 11/8/2005 11:12:58 AM

OEX Trade Signal
OEX testing that same five-minute Keltner resistance that it's been testing most of the morning, with that resistance at 561.72-561.85 on five-minute closes. OEX just popped up to 561.71, but is currently back at 561.30. No resolution yet on either the OEX or the advdec line. I would really like to see a new low of the day soon, on both.

Jeff Bailey : 11/8/2005 11:12:12 AM

11:00 Internals found at this Link

Jonathan Levinson : 11/8/2005 11:10:48 AM

Stepping away for a few minutes.

Jeff Bailey : 11/8/2005 11:05:44 AM

11:00 Market Watch found at this Link

Jeff Bailey : 11/8/2005 11:03:21 AM

S&P 100 (OEX.X) Top 33 weighted components by market cap at this Link ... per 09:38:36 question.

Linda Piazza : 11/8/2005 11:01:00 AM

We've seen the to-be-expected bounce in the advdec line and now we'd like to see it turn down and hit a new low of the day. Resistance at about -2050 is holding on 15-minute closes, but the stronger resistance is up at about -1650 to -1550 now. Of course, those in bearish positions would prefer to see lower resistance hold, but I'm just not sure it's going to continue to do so. Advdec line at -2093 as I type, QCharts value.

Jonathan Levinson : 11/8/2005 10:58:44 AM

QQQQ rolled over from R1 withouht testing 30 min channel resistance, the short cycle upphase still in progress but losing steam below overbought territory. A break of 40.09, at the pivot and just below 72 SMA support, should be enough to generate preliminary short cycle sell signals. Link

Jonathan Levinson : 11/8/2005 10:48:02 AM

Volume breadth -2.6:1 on the NYSE, -1.3:1 on the Nasdaq.

Linda Piazza : 11/8/2005 10:46:20 AM

CSCO has a potential H&S on its 15-minute chart, I just noticed. CSCO reporting days and the days after are always dangerous. We can all remember being caught on the wrong side of a trade the day after CSCO reported.

Jane Fox : 11/8/2005 10:45:48 AM

This is your formula for choppy markets. AD volume going down and AD line going up however, with the AD line at -1150 I would not be worrying too much about bullishness. Link

Jeff Bailey : 11/8/2005 10:57:06 AM

Dynamic Materials (BOOM) $24.00 -11.27% Link ... sharply lower after the provider of explosion-welded clad metal plates reported said Q3 revenue jumped 68% to $20.2 million vs. $12.1 million in the year-ago quarter. Sales were up 10% sequentially vs. Q2's $18.4 million.

Income from operations surged 126% to $4.4 million vs. $1.9 million in the year-ago quarter. Seqeuntial income was up 28% vs. the $3.4 million reported in Q2.

Note: I traded 1/2 position short in shares of BOOM from $20.32 entry on 10/12/05. Covered partial at $18.60, then stopped on rest (10/25/05) at break even.

Jane Fox : 11/8/2005 10:38:41 AM

Opps the VIX just took a big jump down supporting the new daily high in the SPX. This is bullish and we have one of those days went the internals do not support one another.

Linda Piazza : 11/8/2005 10:37:31 AM

OEX Keltner picture: The OEX tests first Keltner resistance at 561.76-562.01 on five-minute closes. That resistance looks fairly strong, strong enough to turn it lower or stop it, but remember that this is a five-minute chart and not as reliable as a longer-term one. Remember those price spikes we've been seeing lately, too. They're just not going to go away until bulls have been scared and nothing yet has done that. OEX at 561.66 as I type.

Jane Fox : 11/8/2005 10:36:47 AM

The AD line may be retreating but as long as the AD volume continues to make new daily lows the bears have nothing to worry about.

Linda Piazza : 11/8/2005 10:35:21 AM

That first advdec line resistance did not hold, as I feared it wouldn't. Stronger resistance ahead at -1600 to -1400. Advdec line now at -1991, QCharts value.

Jonathan Levinson : 11/8/2005 10:34:33 AM

QQQQ's short cycle has turned up from oversold territory, QQQQ approaching R1 at 40.22. The rollover in the 30 min channel is just stalling now on the pop past the 72 SMA. Link

Jane Fox : 11/8/2005 10:28:00 AM

NQ is the only market to test its pivot point (magenta dotted line). Link

Jonathan Levinson : 11/8/2005 10:25:59 AM

Session high for ten year notes just now at 108 23/64, with TNX down 7.4 bps at 4.565%. IRX is higher, however, +2 bps at 3.847%, flattening the yield curve.

Linda Piazza : 11/8/2005 10:25:35 AM

The bad news for our bearish play is that the OEX didn't really fall too far as the advdec line dropped so heavily. The good news is that the OEX hasn't really bounced effectively while the advdec line has been bouncing to test resistance. I'm not sure whether that first resistance, now being tested, is going to hold, however.

Jeff Bailey : 11/8/2005 10:28:58 AM

Toll Brothers (TOL) $34.90 -11.14% Link ... Sharply lower after the luxury homebuilder reported strong gains in recently completed Q4, but said fewer than expected selling communities and weakened demand in several markets has it trimming its forecast for fiscal 2006.

DJUSHB components found at this Link

Toll Brothers now projecting home deliveries between 9,500 and 10,200 home for 2006, which is down from an earlier forecast of 10,200 to 10,600 homes. For 2005, TOL delivered 8,769 new homes.

Backlog for the recently completed Q4 jumped 36% to $6.01 billion, while contracts rose 4% to $1.59 billion.

"The shortage of selling communities, coupled with some softening of demand in a number of markets, negatively impacted our contract results," Toll Brothers said. "It appears we may be entering a period of more moderate home price increases, more typical of the past decade than the past two years."

Jane Fox : 11/8/2005 10:23:39 AM

Very narrow range for these two so far. Link

Jane Fox : 11/8/2005 10:20:06 AM

If we have made a short term bottom the bulls want so see the VIX hold it daily highs and the AD volume hold it daily lows, which it is not currently.

Linda Piazza : 11/8/2005 10:17:59 AM

Advdec line now approaching first resistance up to -1950, but with stronger resistance probably all the way up at -1300. The advdec line is now at -2216, QCharts value.

Jeff Bailey : 11/8/2005 10:16:05 AM

10:00 Internals found at this Link

Yesterday's Internals found at this Link

Jane Fox : 11/8/2005 10:08:34 AM

The VIX and SPX have traded in a very narrow range so far today and are not giving us too much to work with. I do see a short term bottom trying to form but things are still quite bearish according to the AD volume and AD line.

Linda Piazza : 11/8/2005 10:07:48 AM

The TRAN has turned lower this morning, but only within the roughly rectangular band that it's been building at the top of its climb, just beneath 4000. It hasn't broken down out of that formation.

Jonathan Levinson : 11/8/2005 10:09:27 AM

QQQQs' bouncing from a test of 40.00, rising toward descending 72 SMA resistance at 40.12. So far, this has been a slow decline, no different from what we've been seeing since last week- no clear indication of direction yet. Volume breadth remains very weak at -2.55:1 on both exchanges, but the oversold short cycles on the exchanges has been mitigating the weakness in price. Link

Linda Piazza : 11/8/2005 10:04:45 AM

OEX Keltner picture: First resistance at 561.72-562.11 on 15-minute closes. First support at 559.35-559.87 on 15-minute closes. This particularly Keltner support has not been violated on a 15-minute close since October 28, so it's important.

Jeff Bailey : 11/8/2005 10:03:28 AM

10:00 Market Watch found at this Link

Linda Piazza : 11/8/2005 10:00:45 AM

OEX Trade Signal
I'm going to put up an advdec line chart and let you decide for yourselves if you want to hold on for the bounce test on the advdec line. The play is going to stay open and for now the rest of the position retains the original stop, but here's the danger you're facing: Link Until the advdec line either breaks soundly through that support or we see how the bounce acts, we just don't know which kind of day it will likely be.

Jonathan Levinson : 11/8/2005 9:59:46 AM

Marc, the liquidity picture I discussed last night poses a threat to bonds, as the Treasury will be hitting the markets with a lot of fresh supply. I agree with you in that we never know- but I'd be looking to protect profits on longs on any suggestion of weakness.

Jonathan Levinson : 11/8/2005 9:54:56 AM

The Fed announces a 6.75B overnight repo for a net 750M add for the day.

Jonathan Levinson : 11/8/2005 9:54:04 AM

Sweet entry, Marc!

Linda Piazza : 11/8/2005 9:50:44 AM

Advdec line wasn't able to mount a bounce after attempting to steady over the last few minutes. That's good for us, but a bounce is going to come sooner or later. It's too deep into support. I wish the OEX had suffered more damage before that advdec line bounce than it has.

Jonathan Levinson : 11/8/2005 9:49:13 AM

The Fed has 6B in expiring repos to address this morning. The open market announcement is due within the next ten minutes.

Linda Piazza : 11/8/2005 9:47:43 AM

The BIX has turned down from its 200-ema this morning after stopping cold on that average yesterday. However, the BIX found at least temporary support this morning on the 50% retracement of the drop off the summer high into the October low. It took the BIX about a week of testing that 50% retracement to finally break above it, so it does have meaning for the BIX. OEX bears want to see the BIX below that 50% retracement again, with that at about 549.60, but then it's likely to also find support at the 72-ema at 346.31. BIX at 350.77 as I type.

Jane Fox : 11/8/2005 9:45:47 AM

AD volume continues to make new daily lows and with an AD line at -1358 please do not think about trying to catch this falling knife and go long. There needs to be much more evidence the bottom is in I surely do not have that evidence yet.

Linda Piazza : 11/8/2005 9:44:49 AM

Mark's 9:42:12 post on the Futures sides has resonance for me, and is the reason that I held onto a partial position in yesterday's bearish play longer than I would normally and is the reason that I didn't get all traders out of today's bearish one as soon as the OEX dipped beneath 561. That doesn't mean that we won't see that strong pop. As I said earlier, it's setting up for either kind of day and we don't know which until we see how and how high the advdec line drops. It's also the reason I'm keeping the original 564.07 drop now, instead of lowering it as the OEX dropped lower this morning.

Jonathan Levinson : 11/8/2005 9:43:48 AM

The short cycle indicators are trying to bounce here off the opening drop QQQQ has 72 SMA resistance being tested at 40.15, above which the downturn in the 30 min channel should begin to stall. Link

Linda Piazza : 11/8/2005 9:41:47 AM

OEX Trade Signal
The OEX is approaching a zone of strong support, from 559.30-560.40. Advdec line action very ugly but it's at potentially strong support. The next few minutes should tell the tale for us, but there's danger of a strong pop or a cascading lower day. We just don't know yet until we see the advdec line bounce and see how it acts.

Jonathan Levinson : 11/8/2005 9:38:53 AM

Ten year notes hold their gains, TNX down 5.3 bps at 4.586%. Volume breadth for equities remains very weak, -3.67:1 for the NYSE and -2.73:1 for the Nasdaq. Yesterday's lows are key support as the 30 min channels begin to turn down.

Jeff Bailey : 11/8/2005 9:38:36 AM

Question ... I would like to ask Jeff or somebody else as to where I can get the listing by weight in the S&P 500 Index. Eg. GE, MSFT, XOM etc.

Here is a Link to the CBOE and Alphabetical sorted list of components as of 10/31/05.

Here is a Link to the Standard & Poors site.

Linda Piazza : 11/8/2005 9:37:12 AM

OEX Trade Exit Alert
We're either seeing a waterfall type drop being set up or a drop-and-pop day, and I'm not sure which yet. Conservative traders take full profit now.

Linda Piazza : 11/8/2005 9:35:51 AM

OEX Trade Signal
Strong bounce potential here. We'll want to see advdec resistance hold, beginning at about -700. Advdec line now at -2023.

Linda Piazza : 11/8/2005 9:33:42 AM

OEX Exit Point Alert
Take partial profit, if the options pricing allow you to do so. Keep stop on rest the same.

Linda Piazza : 11/8/2005 9:31:56 AM

OEX Entry Point Alert
OEX entry at 562.25. Wow, that sounds familiar from yesterday. Stop at 564.07, which is yesterday's stop exactly. May take quick partial profit soon.

Jonathan Levinson : 11/8/2005 9:31:40 AM

Volume breadth is -2.73:1 on the NYSE, -3.4:1 on the Nasdaq at the open.

Linda Piazza : 11/8/2005 9:30:46 AM

OEX Entry Point Alert
Enter a bearish trade now. Stop 564.07.

Linda Piazza : 11/8/2005 9:30:21 AM

Advdec line opens below support and immediately heads way down.

Jeff Bailey : 11/8/2005 9:13:49 AM

Sun Microsystems (SUNW) $3.89 .... Atop this morning's most active list (16 million shares) with a 2 million share block at $3.77 and 1 million share block at $3.77.

Jeff Bailey : 11/8/2005 9:11:41 AM

iShares Taiwan (AMEX:EWT) $11.22 Link ... #2 most active (6.5 million shares) in relatively quiet morning trade.

Jeff Bailey : 11/8/2005 9:07:36 AM

Program Trading Levels for Tuesday ... HL Camp & Company has their computers set for program buying at $+3.71 and set for program selling at $+1.14.

Jonathan Levinson : 11/8/2005 8:56:29 AM

QQQQ's 30 and 60 min cycles are in bearish divergent downphases just getting started as of the close. These setups have a had a habit of failing in recent sessions, but with the daily cycle looking toppy, that could change. QQQQ bears need a break of 40.00 to confirm the 30/60 min cycle rollovers, below which gap support is in the 39.70 area. Link

Linda Piazza : 11/8/2005 8:34:35 AM

The OEX spent another day yesterday testing the rising trendline off the April low, closing beneath it. It closed at or above the descending trendline off the 9/09 high, depending on how that trendline was drawn or the time period being viewed. I can't view daily volume on the OEX and the OEF doesn't have strong enough volume to be predictive, but the SPY's low-volume action as it tested a similar trendline doesn't inspire confidence. Low volume relative to previous days and small relative range at the top of a climb equals "no interest" by the professionals according to a noted technician. The same action was seen with the QQQQ's.

The OEX had looked as if it was going to produce that doji at the top of a climb that I expected as one scenario for the day, but a last-minute rise widened the real body for the day's candle, and produced something stronger than a doji. It could be viewed a bullish victory that the OEX did not see another doji or even follow-through to the downside.

The BIX landed right below its 200-ema, an average more important to the BIX than the 200-sma. So again, today, I'm going to have to watch how the OEX behaves and how the advdec line sets up before I have an idea what to expect. The OEX is so close to its 200-sma at 564.67 that I wouldn't be surprised to see a drive up to touch that MA, but futures are lower this morning, so that questions that impression. Until the OEX starts closing above that rising trendline off the April low, this looks too much like a kiss goodbye to give me too much confidence in the upside. We'll see what happens today, but as long as resistance is holding, we have to assume first that it's going to continue to hold.

Jonathan Levinson : 11/8/2005 8:27:51 AM

Ten year notes hold a big gain at the cash open, TNX currently down 5.1 bps at 4.588%, 13-week bills down, with IRX up 1.5 bps at 3.842%.

Jonathan Levinson : 11/8/2005 7:48:28 AM

Euro futures are down .62% at 1.1769. CBS news reports that arson attacks have been reported in Belgium and Germany.

Jonathan Levinson : 11/8/2005 7:44:23 AM

(CBS/AP) France is invoking state of emergency law to impose curfews, call up police reservists, and stage raids to search for weapons, in an effort to stop rioting that spread out of Paris' suburbs and into nearly 300 cities and towns across France.

Link

Jonathan Levinson : 11/8/2005 7:29:56 AM

NEW YORK, Nov 8 (Reuters) - Toll Brothers Inc. (TOL.N: Quote, Profile, Research) on Tuesday reported record fourth-quarter home-building revenue, but warned new home deliveries and earnings next year would probably fall short of its expectations.

Link

TOL is quoted -11.19% or -4.41 at 35 in premarket trading.

Jonathan Levinson : 11/8/2005 7:27:46 AM

Equities are up, ES trading 1223.5, NQ 1634.5, YM 10578 and QQQQ flat at 40.13. Gold is down 1.5 at 458.90, silver -.038 at 7.565, ten year notes +9/32 at 108 1/4, crude oil -.125 at 59.35 and natgas -.025 at 11.85.

There are no major economic reports scheduled for release today.

Linda Piazza : 11/8/2005 6:36:05 AM

Good morning. Last night, the Nikkei declined, but most other Asian markets rose, as do European markets this morning. As of 6:32 EST, gold was down $1.80 to $458.60, and crude, down $0.27 to $59.20. Our futures were modestly higher, but below fair value. More details about Asian and European markets follows in succeeding paragraphs.

Last night, the Nikkei started off near the flat-line level, but then spent the morning session building an inverse H&S beneath that flat-line level as energy-related stocks declined. Ahead of the GDP and other important reports later in the week, the Nikkei never could make it back into positive territory, however, and never confirmed that formation. The bourse closed down 24.87 points or 0.18%, but above the 13,980-ish support, at 14,036.73. Bank stocks declined with some believing that banking stocks have come too far, too fast. Insurers gained after one insurer raised expectations. JFE Holdings' strong earnings report sent that company and other steel makers higher. Nippon Oil continued declines from the day before after UBS downgraded the company after its earnings report. Mitsubishi Motors was the most active stock in earliest trading, gaining on speculation that it might increase production.

Most other Asian markets gained. The Taiwan Weighted lost 0.18%, but South Korea's Kospi gained 0.68%. Singapore's Straits Times rose 0.66%, and Hong Kong's Hang Seng climbed 0.26%. China's Shanghai Composite gained 0.86%.

Most European markets gain. Hawkish talk is heard more and more often by ECB members as the week moves on, with those members apparently warning that a rate hike could come at any time. In the U.K. the October BRC Retail Sales Monitor was reported after the close yesterday and beat expectations. Food retailers did not fare as well as some groups in that report and many see their stocks trade lower today. Miners gain, as they did in Asia, and so do carmakers. Reporting companies with stocks that gained afterwards included Cable & Wireless and French drug maker Sanofi-Aventis. Natural gas explorer and producer BG Group saw its stock decline after its earnings report.

As of 6:32 EST, the FTSE 100 was higher by 10.20 points or 0.19%, at 5,471.00. The CAC 40 was higher by 20.51 points or 0.46%, at 4,524.16. The DAX was higher by 3.41 points or 0.07%, at 5,027.61.

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