Schaeffer's Trading Floor Blog

This Week

by 5/9/2005 8:38 AM
Stocks quoted in this article:

With the Fed and monthly employment report out of the way, the economic calendar is calmer this week. I suspect that means earnings from Wal-Mart (WMT), Cisco Systems (CSCO) and Dell (DELL) will likely be the focus. On Friday we touched on the sentiment surrounding DELL and CSCO and the notion that these stocks will be a boon for tech stocks.

As far as WMT goes, the comments I made in this Schaeffer's Daily Contrarian article should sum up my thoughts...


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Good Morning

by 5/9/2005 7:46 AM
Stocks quoted in this article:

We start the trading week with stock futures pointing to a flat open. With just under two hours until the open, S&P futures are in-line with fair value. Gold is down 70 cents to 426.20. Oil is up 31 cents to 51.27...

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Final Figures

by 5/6/2005 4:49 PM
Stocks quoted in this article:

Despite signs that both buyers and sellers tried to make a push today...

Index Index Value Point Change Percent Change
S&P 500 (SPX) 1171.4 -1.3 points -0.11 percent
Dow Jones Industrial Average (DJIA) 10345.4 5 points 0.0 percent
Nasdaq Composite (COMP) 1967.4 5.6 points 0.29 percent
Russell 2000 (RUT) 596.5 0.9 points 0.15 percent
CBOE Market Volatility Index (VXO) 13.30 -0.04 points -0.3 percent

...the action was lackluster and we finish decidedly flat. Even the view below fails to find much of interest for today...

Brokers and banking were the biggest movers for the session, but those moves barely made it to one percent.

Earlier this morning I said:

    "Yesterday we looked at the daily chart of the major indices and noted how the DIA, QQQQ and RUT had not yet pushed above resistance. Today gives the bulls another chance to change this so it will be interesting to see if they can gain traction today..."

Clearly, that did not happen so that is where we will pick up the discussion on Monday...

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Into the Close

by 5/6/2005 4:11 PM
Stocks quoted in this article:

It appears the bulls went home early....

Chart Courtesy of Thomson/ILX the SPX sold off into the close to tag a new session low...though this was barely below breakeven...

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Readers Respond - GLW?

by 5/6/2005 3:50 PM
Stocks quoted in this article:

Levi asks - "GLW on the equity scorecard ranks low but if you look at the charts it looks very good. Weekly its above all averages, 20, 50 and 200. Short interest also doesn't look too bad. Why is the scorecard so low?"

My response - As you can see in the monthly chart below, Corning (GLW) recently broke out of a long consolidation pattern that followed an uptrend in 2003...

Created with SuperCharts by Omega Research

However, the scorecard is looking for heavy skepticism and as you can below, that is lacking...

  • Percent of analysts tracked by Zacks who rate the stock with a "buy": 82%
  • Number of analysts tracked by Zacks: 11
  • Short interest ratio: 4.629
  • Put/call ratio percent rank: 54.7%

Wall Street is optimistic which offers a note of caution. The short interest isn't "awful" but it also isn't enough to push the scorecard higher. Meanwhile, the put/call is flashing neutral. In other words, the recent price action is encouraging but overall, the sentiment backdrop is neutral. This doesn't mean the shares have to reverse, but I would like to see skepticism on this rally pick up...

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