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Email Version, Section 1, Sunday 12-19-2004
PremierInvestor.net Newsletter Weekend Edition 12-19-2004
section 1 of 3
Copyright (c) 2004, All rights reserved.
Redistribution in any form is strictly prohibited.
The entire newsletter is best viewed in COURIER 10 for alignment
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In section one:
Market Wrap: Drug Overdose
Market Sentiment: Only 8 1/2 Trading Days Left
Watch List: Retail, Banks & Software
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MARKET WRAP (view in courier font for table alignment)
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WE 12-17 WE 12-10 WE 12-03 WE 11-26
DOW 10649.92 +106.70 10543.2 - 48.99 10592.2 + 69.98 + 65.32
Nasdaq 2135.20 + 7.13 2128.07 - 19.89 2147.96 + 45.99 + 31.34
S&P-100 567.39 + 1.89 565.50 - 1.58 567.08 + 4.43 + 2.96
S&P-500 1194.20 + 6.20 1188.00 - 3.17 1191.17 + 8.52 + 12.31
W5000 11783.36 + 91.38 11692.0 - 43.29 11735.3 + 99.63 +155.01
SOX 423.75 + 1.00 422.75 - 22.53 445.28 + 14.30 - 0.90
RUT 642.08 + 9.84 632.24 - 9.97 642.21 + 11.05 + 17.71
TRAN 3751.07 + 65.04 3686.03 - 40.71 3726.74 + 78.75 + 80.34
VXO 12.71 13.20 13.61 13.35
VXN 18.21 19.57 18.26 17.85
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===========================
Market Wrap
===========================
Drug Overdose
by Jim Brown
What a way to end the week! There was a constant barrage
of drug news both positive and negative that helped remove
any remaining bullish bias. Add in the index re-weighting
on the NDX, RUT, S&P 500, Mid-cap and Small-cap and it had
investors wishing they were on drugs before the day was
over.
Dow Chart
Nasdaq Chart
SPX Chart - Multiple Resistance Lines
The Consumer Price Index rose a higher than expected +0.2%
despite the drop in oil prices over the reporting period.
Core inflation also rose +0.2% and pushed the annual rate
of inflation to +2.2% for the last 12 months. The headline
inflation rate increased to an annualized +3.5% and the
highest since May 2001. With inflation rising the Fed
has no reason to really let up on the rate hike scenario
despite the current wishful consensus that expects them
to pause. Energy prices added to the number despite a
drop in crude for the month. The higher energy levels
are starting to filter through the system and it will
take a prolonged drop to remove the upward pressure.
Don't count on it any time soon.
The economic news took a back seat to the drug news and
there was plenty of it. The headliner for the day was
Pfizer and news that at very high levels there was an
increased risk of heart attack. The new study released
Friday showed at doses 2-8 times the recommended dose
there was twice the risk of heart attack. The study was
an anti cancer study where very high doses of Celebrex
were being tested to see if cancer complications from
high levels of inflammation could be improved by removing
the inflammation. PFE stock dropped to $22 from $29 on
the news but quickly rebounded to close at $26. You would
have thought they had found that there was a heart attack
in one of every 50 pills. Very few drugs when taken at
4-8 times the recommended dosage will not cause problems
and I think Pfizer will recover. However, as we have seen
over the last three months the MRK/VIOXX news has caused
serious investor flight from these drugs. It could be
months or even a year before the daily news stories
will fade away. This weekend CNBC is doing a special
called the "Death of a Wonder Drug" in relation to the
MRK/VIOXX event. This will pose additional questions in
the mind of users and investors. I believe PFE is a buy
at $25 but I would give it a few more days to settle
down. PFE traded 289 million shares on Friday and I
suspect there are plenty of investors who did not bail
but will soon.
Lilly warned that their Strattera drug for A.D.D. had
produced liver problems in some patients. LLY fell -1.38
on the news. AstraZeneca fell -7.7%, -$3.11 after it said
it's cancer drug Itressa failed to prolong survival in
cancer patients. OSIP soared on the news with a +$21
jump to $68. OSIP and DNA just had their anti cancer
drug Tarceva approved on Nov-19th. With Itressa out
of the picture the OSIP drug which has shown positive
benefits should jump to the front of the pack. Deutsche
Bank said "Tarceva remains the only EGFR inhibitor to
have demonstrated a survival benefit in patients" and
maintained a buy on DNA/OSIP. CSFB said it was a clear
win for Tarceva. FBR said Tarceva could end up with 100%
of the market but Eributux from Imclone could still be
a factor in future trials.
There were several lesser items of drug news but you
get the picture. JNJ powered the Dow higher on Thursday
and gave Dow components MRK/PFE a boost as well. Today
PFE removed that positive bias and pushed the Dow back
to 10650 and a level that appears risky were it any
other time of the year.
Crude Oil Chart
Last Sunday I predicted that the 200-day average would
be strong support on crude oil. That average at just
over $40 produced a very strong bounce. Oil prices
rocketed back over $46 with a gain of +2.10 on Friday
and +5.60 for the week. This was a +14% jump in price
and the biggest jump in five years. Somebody must have
gotten an advance copy of my Oil Crisis Report. (grin)
The jump was related to colder weather drawing
down supplies of heating oil, the breakup of Yukos,
the Osama tape and worries about Nigeria again. Yukos
production arm is going to be auctioned this weekend
to supposedly satisfy a tax debt. However, it is already
beginning to appear as though Russia is trying to regain
control of its oil assets. This is troubling for the oil
sector as Yukos was the most westernized of the Russian
entities. Yukos pumps about 1.5 mbpd and has reserves
of nearly 11 billion barrels. That sounds like a lot
but it is less than a four month global supply at our
current rates. The bidder expected to win is Gazprom,
Russia's state controlled gas giant. I say expected
to win because only four companies have entered the
auction and the other three are previously unknown.
Considering it took at $1.77 billion deposit to enter
the auction it did not take much research to determine
that at least two of the unknowns were actually linked
to Gazprom itself and put in the bidding to simulate a
real auction. Indications are that the third company
may also be a phony. If the government gave an auction
with only one government controlled company bidding it
would be seen as a complete sham. By adding in three
phony bidders it is only a 97% sham. Thus far no western
country has appeared to bid because they no longer feel
confident in doing business there. With the expected
price to be in the $8 billion range and fair value in
the $18.5 billion range you would have expected some
of the U.S. companies to take a shot. They all fear
the current environment and the potential for losing
all of their investment.
Production is already falling at Yukos since the
current battle began and fears are rising that should
another Russian company take control the production
would slip even further. The problem in Russia is a
desire to take all the cash from sales and use it
elsewhere and not spend any on new exploration,
repairs or even finishing out existing capacity.
When the fields begin to decline there is no cash
left to rebuild them. Secondly if this is a move by
Russia to take back the oil fields for whatever reason
then western oil companies are afraid to invest/explore
in the region. This also increases the global decline
rate because the entire region is taken out of the
picture earlier than expected. It normally takes
about six years from discovering oil to being in full
production of the find. If the discovery phase is being
eliminated in Russia then we will always be at least
eight years away from seeing any additional production.
Two years to restart the discovery process once the
political climate changes and six years to drill and
start production. This is yet another reason why the
world is going to be very short on oil very soon. I
explain this all in great detail in my Oil Crisis
Report. https://secure.sungrp.com/05renewal/
A new Osama tape that appeared on Thursday calls for
attacking oil in Iraq and the entire Middle East to
prevent America from getting it. This is yet another
problem that will be facing the world in 2005. Osama
repeated the claim that the U.S. invasion of Iraq was
to take control of some of the largest oil fields in
the world. I discarded this accusation over the last
two years but after doing research on my oil report
I am no longer sure. I initially thought Bush went
after Iraq and Saddam for various reasons including
Saddam's attempt to assassinate Bush senior. I did
not give credence to the oil scenario. Since Bush and
Cheney are oilmen fully aware of the coming problem
I am finding there could easily have been an ulterior
motive that included putting in a new regime that
was friendly to the U.S. just before the world oil
production begins to decline. I am sure nobody will
ever admit to it. It also did not hurt to show some
force in the region in anticipation of the coming oil
crisis. Makes the other countries a little less vocal
about their anti American feelings and tendencies. I
have rambled on here but you can see I am becoming
passionate about the future of oil.
EBAY caught the shopping fever this week and bought
Rent.com for $415 million. Rent.com lists home and
apartment rentals on the Internet. This is a great
deal for EBAY and helps get them another step closer
to building out their real estate segment. EBAY is
expected to be a major force in real estate sales
in coming years. Rent.com listings only generate a
fee if the property is rented. The fees are generally
much higher than an auction on a Tickle Me Elmo doll
so I am sure EBAY will get another shot in the revenue
arm once the deal closes in early 2005.
There was huge volume across all the indexes Friday and
the Dow came close to a top-5 volume day. Volume across
all three major exchanges totaled 5.985 billion shares.
This is almost a billion shares more than Thursday's
5.005B level. Nearly 700 million shares were in only
two companies. News Corp, NWS-a, traded 408 million
shares and PFE hit 289 million. News Corp was added
to the S&P-500 at the close. The Nasdaq leaders were
SIRI 130M, MSFT 129M and CSCO 106M. SIRI has been 2-3%
of the daily Nasdaq volume for over a month. According
to Ameritrade it is the most heavily traded stock by
a wide margin.
Unfortunately the majority of this massive volume was
down despite the A/D line being nearly flat. For two
days now we have seen massive volume and it has been
weighted to the sell side. This is very troubling to
market analysts given the level of the indexes, the
length of the current rally and the season. It is
still hard to attribute the losses to any material
stock factors. This could just be related to the
index events. With the 41 new IPO stocks going into
the Russell there was a need to sell a portion of
existing positions in thousands of stocks, literally.
This would contribute to sell side volume but no real
drop in prices. Same with the S&P changes. With News
Corp's market cap at $55B this also meant index funds
had to buy a lot of NWS stock. Over $7.6 billion in
NWS stock was bought on Friday. This literally meant
$7.6 billion in other S&P stocks had to be sold to
maintain the balance in the index.
I believe this index re-weighting has depressed the
market over the last couple days and produced an
artificial selling bias. Quadruple witching expiration
did not help either. Little was said about the FASB
option ruling on Friday but you can rest assured it
will reappear. A reader emailed me on Friday about the
American Jobs Creation Act asking how it would impact
the market in 2005. Given the potential downside
pressure from the FASB options ruling this is an
excellent time to discuss the Act. I had meant to do
it several times but there is just never enough space.
The American Jobs Creation Act was passed on Oct-22nd
and it basically gives American corporations a free
pass to the local candy store. Companies with operations
in other countries can repatriate up to $500 million per
year in cash at a 5.25% tax rate. The current tax rate
for bringing overseas profits back into the country is
35%. This nearly free opportunity takes dollars that
would have been spent in other countries and brings
them back to the U.S. The only catch is that the money
must be used for job creation, capital expenditures,
pay down debt, buy back stock, increase dividends or
fund pensions. All of these uses would be positive
for the U.S. economy. According to TrimTabs and Morgan
Stanley there could be over $420 billion in profits
waiting to be put to work. Of that number TrimTabs
estimates $150 billion could be repatriated. Intel
has already announced they might bring back $6 billion.
Heinz said they were returning $1 billion. These are
just the tip of the iceberg given the Act has only
recently been signed. Of that $150 billion TrimTabs
thinks $50 billion could make its way directly into
the market and the rest would support the market by
the various other uses. Obviously the largest amount
will be in the first year of the program and it will
dwindle as the years pass. Is it enough to compensate
for the FASB ruling? I doubt it but it should soften
the blow.
Russell Investment Services released the results of a
recent survey of investment managers on Friday. The
survey showed that 10.4% thought the market was over
valued, 69.8% thought it was fairly valued and only
19.8% thought it was under valued. In general the
managers were expecting an 8-11% return in 2005 and
felt dividend stocks were the main focus with large
cap and growth stocks the next in favor. That is a
"return" not an increase. They are expecting a +5-7%
market gain and the rest in dividends. Another analyst
said dividends had represented 43% of market returns
from 1930-1980. Since 1981 dividends had only accounted
for 23% of the overall returns. Both analysts felt 2005
would be another year for increased dividends rather
than any material increase in stock prices. In periods
where the market stagnates those dividends can provide
an income to offset the lack of appreciation. With the
current tax laws favoring dividends it only makes sense
managers would refocus their efforts.
For next week we are facing a lot of mixed market
indicators. Historically the Santa Claus rally occurs
on the last four days of the year and the first two days
of the next. The anticipation of this rally normally
sees buyers appear the two days before Christmas. For
2004 this gives us a window from Wednesday this week
until Tuesday Jan-4th as potentially bullish days.
With expiration on Friday we should continue to see
settlement issues on Monday. Monday and Tuesday could
be a critical days for market sentiment. With the Dow
resting on 10650 and the SPX in danger of breaking 1195
we need to see confirmation of the prior underlying bid
or the Santa rally could fail. This makes Mon/Tue pivotal
for the rest of the year. There is an adage, "If Santa
Should Fail To Call, Bears May Come To Broad and Wall."
When buyers are hesitant to enter the market during the
holiday season it typically suggests trouble ahead.
This makes next week a critical sentiment week for all.
Everyone will be watching and many will be waiting for
somebody else to take the first step.
To make it as simple as possible I would continue to
watch SPX 1195. We broke back below the 1200 level I was
using as an indicator to add to positions on Friday but
I am hoping it was due to index balancing. 1195 is still
support. Should we fall below that level I would not want
to be long. As long as we remain above I would chance
small bullish positions until we get confirmation the
underlying bid has returned. Mutual fund managers have
a lot riding on the next nine days. Many earn their
bonuses based on performance through 12/31. They will
want to keep painting the tape as much as possible to
keep prices high. However, they do not have to remain
locked into this program. If the outlook suddenly turns
grim they can and will take profits to salvage as much
of their bonus as possible. Until a new upward trend
appears next week traders and managers will be walking
on eggshells in fear of an early breakdown. Let's hope
those eggs are petrified.
Only 5 shopping days until Christmas
Jim Brown
================================================
Market Sentiment
================================================
Only 8 1/2 Trading Days Left
- J. Brown
Would you believe we only have eight and a half trading days left
in 2004? That means we're approaching one of the most bullish
times of year for equities. The traditional Santa Claus rally
usually begins around Tuesday or Wednesday this week and runs
into the first two trading days of January. As is normally the
case market pundits begin asking, "Will the year-end rally appear
this year?"
We think so. Granted the major stock indices are still
overbought but stock funds are expected to see huge inflows and
managers need to put that money to work. Part of the year-end
rally can probably be attributed to year-end and quarter-end
window dressing so your mutual fund statements look good.
If for some reason Santa fails to show up it could spell trouble.
The old Wall Street maxim "If Santa Claus should fail to call
bears may come to Broad and Wall" is true because the lack of a
year-end rally in the past usually signaled the beginning of a
new bear market or at least a serious correction.
Some technicians are worried too. The huge volume recently
without any stock market gains could spell a top. The volume on
the NYSE this Friday was 3.1 billion shares while the NASDAQ hit
2.49 billion. Jim's wrap suggested that most of this volume was
due to the various index rebalancing. Let's hope so!
This coming week the U.S. markets are closed on Friday in
observance of Christmas. That means all the economic data has
been squeezed into Wednesday and Thursday with the final Q3 GDP
numbers, chain deflator numbers, November Durable orders,
personal income and spending, and the Michigan Sentiment figures
for December.
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Market Averages
DJIA ($INDU)
52-week High: 10753
52-week Low : 9708
Current : 10649
Moving Averages:
(Simple)
10-dma: 10593
50-dma: 10308
200-dma: 10238
S&P 500 ($SPX)
52-week High: 1207
52-week Low : 1060
Current : 1194
Moving Averages:
(Simple)
10-dma: 1193
50-dma: 1157
200-dma: 1125
Nasdaq-100 ($NDX)
52-week High: 1635
52-week Low : 1301
Current : 1596
Moving Averages:
(Simple)
10-dma: 1610
50-dma: 1531
200-dma: 1450
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CBOE Market Volatility Index (VIX) = 11.95 -0.32
CBOE Mkt Volatility old VIX (VXO) = 12.71 -0.30
Nasdaq Volatility Index (VXN) = 18.21 -0.39
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Put/Call Ratio Call Volume Put Volume
Total 0.84 1,241,187 1,037,969
Equity Only 0.54 1,002,656 536,541
OEX 1.48 53,842 79,939
QQQQ 2.59 41,366 107,462
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Bullish Percent Data
Current Change Status
NYSE 76.3 + 0 Bear Correction
NASDAQ-100 77.0 + 0 Bull Confirmed
Dow Indust. 70.0 + 0 Bull Confirmed
S&P 500 76.6 - 0.2 Bull Confirmed
S&P 100 77.0 + 0 Bull Confirmed
Bullish percent measures the number of stocks in an index
currently trading on a buy signal on their point and figure
chart. Readings above 70 are considered overbought, and readings
below 30 are considered oversold.
Bull Confirmed - Aggressively long
Bull Alert - Cautiously long
Bull Correction - Pause or pullback in upward trend
Bear Alert - Take defensive action if long
Bear Confirmed - High risk if long, good conditions for shorting
Bear Correction - Pause or rebound in downtrend
-----------------------------------------------------------------
5-dma: 1.00
10-dma: 1.09
21-dma: 1.01
55-dma: 1.06
Extreme readings above 1.5 are bullish, and readings below .85
are bearish. These signals don't occur often and tend be early,
but when they do, they can signal significant market turning
points.
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Market Internals
-NYSE- -NASDAQ-
Advancers 1387 1482
Decliners 1428 1560
New Highs 203 106
New Lows 16 9
Up Volume 1336M 971M
Down Vol. 1768M 1471M
Total Vol. 3141M 2493M
M = millions
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Commitments Of Traders Report: 12/14/04
Weekly COT report discloses positions held by small specs
and commercial traders of index futures contracts at the
Chicago Mercantile Exchange and Chicago Board of Trade. COT data
can be found at www.cftc.gov.
Small specs are the general trading public with commercials being
financial institutions. Commercials are historically on the
correct side of future trend changes while small specs tend
to be wrong.
S&P 500
Commercial traders upped their positions in both longs and
shorts with the net result as a decrease in their bearish
bias. Small traders did the same but with a net result in
a decrease in their bullish bias.
Commercials Long Short Net % Of OI
11/23/04 462,408 491,384 (28,976) (3.0%)
11/30/04 462,394 491,813 (29,419) (3.0%)
12/07/04 450,072 498,057 (47,985) (5.0%)
12/14/04 502,471 540,494 (38,023) (3.6%)
Most bearish reading of the year: (111,956) - 3/06/02
Most bullish reading of the year: 23,977 - 12/09/03
Small Traders Long Short Net % of OI
11/23/04 171,192 150,606 20,586 6.4%
11/30/04 176,031 148,876 27,155 8.3%
12/07/04 187,707 135,776 51,931 16.0%
12/14/04 201,428 164,111 37,371 10.2%
Most bearish reading of the year: (1,657)- 5/27/03
Most bullish reading of the year: 114,510 - 3/26/02
E-MINI S&P 500
Hmm.. we have some interesting movement here. Commercials upped
both their longs and shorts but their bearish bias has been slowly
decreasing for weeks. Meanwhile the small traders more than
doubled their short positions putting a serious dent in the
overall bullish bias.
Commercials Long Short Net % Of OI
11/23/04 412,724 849,091 (436,367) (34.6%)
11/30/04 439,074 855,440 (416,366) (32.2%)
12/07/04 470,553 805,234 (334,681) (26.2%)
12/14/04 556,980 899,616 (342,636) (23.5%)
Most bearish reading of the year: (436,367) - 11/23/04
Most bullish reading of the year: 133,299 - 09/02/03
Small Traders Long Short Net % of OI
11/16/04 445,737 70,169 375,568 72.8%
11/23/04 400,995 62,080 338,915 73.1%
11/30/04 386,665 67,926 318,739 70.1%
12/07/04 311,838 66,496 245,342 64.8%
12/14/04 398,915 137,598 261,317 48.7%
Most bearish reading of the year: (77,385) - 09/02/03
Most bullish reading of the year: 449,310 - 06/10/03
NASDAQ-100
We are seeing some interesting movement here too. Commercial
traders significantly raised their positions in both longs
and shorts with a serious drop in their bullish bias as
the net effect. Meanwhile small traders added a huge chunk
of new longs compared to a significant jump in shorts with
the net effect being a sharp drop in their bearish bias.
Commercials Long Short Net % of OI
11/23/04 58,159 34,104 24,055 26.0%
11/30/04 56,629 30,571 26,058 29.8%
12/07/04 57,621 34,313 23,308 25.4%
12/14/04 73,554 50,286 23,268 18.7%
Most bearish reading of the year: (21,858) - 08/26/03
Most bullish reading of the year: 26,058 - 11/30/04
Small Traders Long Short Net % of OI
11/23/04 11,153 39,712 (28,559) (56.1%)
11/30/04 9,902 44,779 (34,877) (63.7%)
12/07/04 15,489 49,064 (33,575) (52.0%)
12/14/04 26,781 58,159 (31,378) (36.9%)
Most bearish reading of the year: (34,877) - 11/30/04
Most bullish reading of the year: 19,088 - 01/21/02
DOW JONES INDUSTRIAL
Commercial traders added significant amounts to both their long
and short positions with a net decrease in their bearish bias.
Small traders also poured a lot of new money into both their
long and short positions with the net effect as a decrease
in their bearishness.
Commercials Long Short Net % of OI
11/23/04 22,527 25,537 (3,010) (6.2%)
11/30/04 22,622 25,411 (2,789) (5.8%)
12/07/04 25,523 27,351 (1,828) (3.4%)
12/14/04 36,960 38,566 (1,606) (2.1%)
Most bearish reading of the year: (8,322) - 1/16/01
Most bullish reading of the year: 15,135 - 10/16/01
Small Traders Long Short Net % of OI
11/23/04 5,833 8,299 (2,466) (17.4%)
11/30/04 5,739 8,536 (2,797) (19.6%)
12/07/04 5,274 9,507 (4,233) (28.6%)
12/14/04 13,445 19,089 (5,644) (17.3%)
Most bearish reading of the year: (12,106) - 3/09/04
Most bullish reading of the year: 8,523 - 8/26/03
==================================================================
WATCH LIST
==================================================================
The PremierInvestor.net watch list is not designed to be read
as full fledged stock picks. Rather we would prefer to offer
it as an extra tool in today's investor toolbox. Think of it
as a radar screen with your own radar operator pointing out
interesting developments, technical patterns or potential plays
that you may or may not have seen on your own. Due to time
constraints we do glance at the news but rarely do we have
time to fully read pertinent news stories, due background
research and other necessary screens that investors should do
before making a decision. A common exercise is to read the
entry, glance at the sector and other stocks in that industry
and then compare what's happening in the stock to what's
happening in the broader market indices. We hope you enjoy
the Watch List and that it proves to be a useful tool for your
own trading success.
STOCKS WORTH WATCHING
---------------------------------
Bed Bath & Beyond - BBBY - close: 39.04 change: -0.60
WHAT TO WATCH: We came very close to adding BBBY to our play list
as a short candidate. The stock has been falling after its
recent earnings report. The company beat estimates by a penny
but came in light on revenues. Prudential followed up with a
downgrade while CSFB tried to defend BBBY by reiterating its out
perform rating. BBBY's management may have tried to soften the
news with a $350 million stock buy back program. We would watch
for a breakdown under $39.00 and target a move to long-term
support at $35.00.
---
Fremont General - FMT - close: 24.99 change: +0.54
WHAT TO WATCH: The high-volume rebound from the $24.00 level
might be a bullish entry point. We can't find any news for the
volume but the $24.00 level used to be resistance and old
resistance tends to become new support. Of course FMT still has
some resistance at $25.00 dating back to October. Conservative
traders might wait for a move over $25.00 instead.
---
Unisys Corp - UIS - close: 9.55 change: -0.15
WHAT TO WATCH: We normally don't like to short stock under the
$10.00 mark but UIS looks like a bearish candidate. The bounce
on Friday failed at 9.84 and shares closed at a new 18-month low.
Volume has been very strong on the recent decline in mid-December
and the breakdown under the August low suggest there is more
weakness ahead. It is worth noting that the P&F chart bearish
target has already been achieved ($11) but that doesn't make it a
buy. Shares dipped to $8.25 back on February 9th, 2003 and may
be the target bears are looking for.
---
Symantec - SYMC - close: 25.37 change: +0.24
WHAT TO WATCH: Ouch! SYMC was crushed for a loss from $34 to $25
under the recent merger news and speculation. This seems way
over done and we're probably not the only ones thinking SYMC
could bounce from here at its 200-dma. Watch for a move over
$26.00 as a potential entry point for a short-term bounce.
-----------------------------------
RADAR SCREEN - more stocks to watch
-----------------------------------
CBSS $47.45 +0.37 - This banking stock is slowly marching higher
and looks ready to breakout over the $48.00 level. The huge
volume on Friday was based on news that CBSS would be added to
the S&P 500 index.
PETD $39.05 +1.05 - PETD is an oil and gas stock that has been
inching higher the last few days. A move over $40.00 might be an
entry point.
C $46.62 -0.43 - We are watching Citigroup for a breakout over
$48.00.
TXN $23.44 -0.59 - TXN looks vulnerable to more selling with
Friday's breakdown. Look for a move under $23.00.
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is possible at this or some subsequent date, the editors and
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presented. All investors should consult a qualified professional
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