Schaeffer's Trading Floor Blog
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After I posted the new blurbs below I pulled up the charts and found some very interesting differences...

Created with SuperCharts by Omega Research

TXN has been is a steady uptrend since August while IMCL hit a new annual low yesterday. Meanwhile, MO has been consolidating sideways after a strong run which is usually a constructive sign.

I also added the chart of the SMH that shows the resistance zone I have been discussing for some time. The group has not yet been able to overtake this zone so it will be interesting to see if TXN's news can help on that effort. Of course, Intel has a their own update tomorrow so that also has the potential to move the group...


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In the News

by 6/8/2005 8:46 AM
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A quick scan of the headlines shows that...Texas Instruments (TXN) is in the spotlight after they raised their second-quarter earnings forecast in last night's mid-quarter update.... Imclone Systems (IMCL) is also getting some attention on news that Carl Icahn may be increasing his stake in the firm....Finally, Altria Group (MO) appears to be attracting some pre-open buyers as it appears the Department of Justice is scaling back its smoking cessation plan.

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Stocks quoted in this article:

In response to the new Advanced Home Study Program project, Mike says - "Hi, Nick--Thank you for the educational opportunity...I am looking forward to reading more of the details. My only concern is that the Blog becomes more classlike and less Trader-like...I obviously welcome all Qs & As to learn more, but I don't want to miss out on your news, insights and thoughts on the trading day's events, either. (You might say I prefer the "Nick in Time" part of the Blog, when you're discussing real-time occurrences). I just hope they don't spread you too thin... Thanks and I look forward to the new additions."

My response - Thanks for voicing your concern as this was one of the worries that I also share. However, I plan to do much of the leg work "offline" so that I can still focus on the market during key times. Also, I planned this for the summer when activity tends to be slower. In other words, if we do see a summer lull we can take advantage of this slowness as opposed to feeling like we are watching paint dry...

You can find more information on the Advanced Home Study Program here.


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Good Morning

by 6/8/2005 7:46 AM
Stocks quoted in this article:

If at first you don't succeed, try, try again...

That would appear to be the motto of the bulls as they rebound from yesterday afternoon's reversal to rally pre-open stock futures. With just under two hours until the open, the S&Ps sit nearly five points above fair value.

Oil is down 53 cents to 53.23 ahead of today's inventory report. Gold is up 60 cents to 427.30.

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Final Figures

by 6/7/2005 4:58 PM
Stocks quoted in this article:

As the figures below show...

Index Index Value Point Change Percent Change
S&P 500 (SPX) 1197.3 -0.3 points -0.02 percent
Dow Jones Industrial Average (DJIA) 10483.1 16 points 0.2 percent
Nasdaq Composite (COMP) 2067.2 -8.6 points -0.41 percent
Russell 2000 (RUT) 623.8 0.8 points 0.13 percent
CBOE Market Volatility Index (VXO) 11.70 0.22 points 1.9 percent

...today was more or less a round trip as the major indices shrugged off earlier gains and finished the session flat.

While the broad market indices were flat, a number of sectors showed losses on the day. Semis took a hit which is worth noting as the group continues to struggle with resistance. After trying to bounce from their lows in the late-morning, gold stocks resumed the sell-off that started yesterday afternoon. Oil related stocks were also weak. Bonds were strong as the TLT pushes back toward Friday's high. Housing stocks were also gainers on the day as the HGX hit a new intraday high today.

Earlier I noted the curious behavior of today's market action and I am not sure of its significance. In quickly glancing through some charts I did notice a number of bearish outside days. (A bearish outside day is chart pattern where you have both a higher high and a lower low versus the previous day and a lower close.) While far from being a "perfect" indicator, many traders regard this as a sign of weakness.

Last night I said I would update my index charts but I didn't do that. However, I have this on my "must do" list for the morning...

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