TRUCKING STOCKS ROLL AHEAD - UTILITY STOCKS WMB & AES EXTEND RALLIES
J.B. HUNT LEADS TRUCKING RALLY... Dispite the weakness in the major market averages, trucking stocks: J.B. Hunt (JBHT), Yellow (YELL), Roadway (ROAD), and CNF Transport (CNF) are rolling ahead. J.B. Hunt (see chart #1) is currently breaking out of the top of a neutral trading range (see shaded square). A close above the $30 area would confirm a breakout. The next resistance level for JBHT can bee seen on the weekly chart (chart #2) near its June high (see circle).
Chart 1
Chart 2
AES CORP & WILLIAMS EXTEND RALLIES... AES Corp. (AES) (showcased in December 3rd, 2002 - Sell off sparks rotation into Utilities, Gold, Energy and Reits Market Message) is extending its gains today on heavier volume. The stock continues to hold above its 200-day and is surpassing its December peak. Another utility stock, Williams (WMB)(showcased in January 8th, 2003 - Nasdaq testing 200-day average Market Message) has followed through with its upside breakout and is approaching resistance near its August 2002 peaks (see shaded circles on chart #5).
Chart 3
Chart 4
Chart 5
BIOTECH INDEX CLOSES ABOVE 200-DAY... The Biotech index (BTK) (please see today's earlier update for individual biotech leaders) has closed above its 200-day moving average, which is bullish. The next resistance levels are near the December and August peaks (see shaded circles).
Chart 6
GOLD AND OIL JUMP -- OTHER POCKETS OF STRENGTH... The market lost more ground today -- weighed down by technology. Pockets of strength, however, were energy, gold, homebuilding, tobacco, and papers (in addition to biotech, truckers, and utilities). Gold jumped $7.00 to a new six-year high, while oil prices rose to a two-year high. That also put downside pressure on the market. MORE LATER.
