Schaeffer's Trading Floor Blog

One to Watch - APPX

by 4/27/2005 2:11 PM
Stocks quoted in this article:

The chart of American Pharmaceutical (APPX), which is a specialty pharmaceutical company, just caught my eye...


Created with SuperCharts by Omega Research

Here you can see a rather interesting pattern. The shares gapped higher in early January after the FDA approved one of their drugs. I briefly touched on that in this post while this press release has the details.

The shares spent the next few months consolidating those gains and then bounced off the 50-day moving average in late-March. This small upward move has been consolidating above those recent highs. The company is scheduled to report earnings next Wednesday morning and with a scorecard reading of 8, it might be one to watch. More information on the company can be found on their website.


permanent link
Stocks quoted in this article:

Dave says - "That S&P five minute is a clean 5 wave Elliott wave. However that wave is part of a larger corrective move. Thur-Fri (A) Fri-Mon (B) Mon-Tue (C) Tue-Wed X, or a continuation of the downtrend, but only if we break that recent low. Otherwise we could correct higher in a more complex pattern, more ABC waves, and that would require some time to play out, and the index could break the 1190 level, which would confound the Bears once more. Elliottwave analysis is a real art, and we all know artists don't make much money. "

My response - I am not a big follower of wave patterns so I don't have too much to add on that...but I thought it was interesting enough to share. I do think that the recent lows are important to keep in mind. A move above 1190 would be accomplishment for the bulls as that would take out the highs for this month and put the SPX back above the 50-day moving average. But before the bulls can start salivating over that, they need to punch through the recent lows near 1170...


permanent link

Index Check

by 4/27/2005 1:30 PM
Stocks quoted in this article:

The stair step pattern continues as the SPX has now traded in a 15 point range for the day...in other words, at its lows the SPX was seven points lower on the day but has now reverse and is up by nearly that same amount...The DJIA has traded in a 140 point range...

Overall we see that the major indices are showing mild gains while internet, gold stocks, and oil are trading lower....


permanent link

One More Chart

by 4/27/2005 12:56 PM
Stocks quoted in this article:

Please forgive the chart barrage but I just pulled up this daily chart of the SPX that gives a slightly different perspective from what I have been discussing. In the daily index charts that we have tracking, I have focused on the support and resistance levels.

However, I have neglected to note the emerging trend. Check out this daily chart of the SPX that includes a channel to highlight the recent trend...


Created with SuperCharts by Omega Research

The action since early-March has been a fairly well-defined downtrend. I know I am stating the obvious to many of you, but as I alluded to last night, the day-to-day grind has a way of lulling investors into a feeling that "all is well"...especially when that is what they are told day in and day out... and I want to make sure that everyone here has a chance to see all sides.

It is also interesting to note that the 50-day moving average has flattened out and appears to be rolling over. This trendline is now at its lowest level since early January.

<

permanent link

Buy Programs Part II

by 4/27/2005 12:38 PM
Stocks quoted in this article:

I wanted to give the buy programs a chance to settle and then check back in on the SPX...


Chart Courtesy of Thomson/ILX

If you look at this chart you can guess where the surges in net ticks are hitting as the SPX surges then consolidates then surges.... to form this exaggerated stair step pattern. I am always curious of these patterns as it seems like just a few buyer are running the show for the time being. But of course, that is merely conjecture.

What we do know is that the SPX is perched precariously close to its lows for 2005 so the near-term momentum is not to the upside...


permanent link
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.