Schaeffer's Trading Floor Blog

Speaking of Semis

by 4/26/2005 10:23 AM
Stocks quoted in this article:

An email from a reader turned my attention to Alter (ALTR) which was upgraded this morning. This enthusiasm caused the shares to gap up and they currently sit five percent higher on the day...


Created with SuperCharts by Omega Research

Which has pushed the shares above their 50-day moving average and into a trendline that marks the descending highs. It will be interesting to see if

  1. The shares can hold this gap
  2. This positive momentum helps to boost the SMH off the lows noted in the post below...


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Chart Chatter - SMH

by 4/26/2005 10:04 AM
Stocks quoted in this article:

As promised, here is a chart of the semis...


Created with SuperCharts by Omega Research

Here we see the familiar support and resistance zones that we have been tracking for sometime, as well as the 50-day moving average. Last week we discussed how the group had found support at their January lows but notice how the SMH has not been able really to move higher. In fact, the last three sessions have seen the shares register a lower high.

I wouldn't call this the kiss of death...yet...as I have seen bounces off support get off to a slow start but it might be worthwhile to note the lethargy...


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At the Open

by 4/26/2005 9:52 AM
Stocks quoted in this article:

The opening bell has rung and here is what I see...

As indicated by pre-open futures activity, there was a negative bias at the open...but losses are fairly mild...oil is the biggest decliner...internet and semis are among the weakest groups along with cyclicals and natural gas....biotech, bonds, and gold are the only groups holding gains.

The chart of the semis just caught my eye. Give me a moment and I will post that...

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Stocks quoted in this article:

I have been keeping an eye on the pre-open futures action...


Chart Courtesy of Thomson/ILX

As you can see, the S&Ps drifted steadily lower into 6:30 AM where they tried to bounce. This bounce appears have run out of steam as the June Futures turn lower. They currently sit three and a half points below fair value...

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Updated Index Charts

by 4/26/2005 8:44 AM
Stocks quoted in this article:

As I am getting caught up on all the activity from yesterday, I wanted to take a moment to update the daily charts of the major indices that we have been tracking...

Created with SuperCharts by Omega Research

Yesterday's rally allowed the SPX and DIA to push above their recent highs. However this was not enough to allow them to retake the former support zones that now loom as resistance. Also note the reluctance of the QQQQ and RUT to push above Thursday's highs. Depending on your perspective, this could either be a sign that large caps are now leading the way or signal that the rally doesn't have the support of tech and small cap names.

I have been scanning through a number of articles I have seen the continuing theme of analysts expressing enthusiasm for the large cap group. This may help explain the large cap pop as the Street funnels money to these stocks. This also gives us a chance to see how much money they can push towards the group as the large cap indices push into reisistance...


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