TECHNOLOGY AND TRANSPORTS LEAD WEEK'S RALLY
FRIDAY'S TECHNOLOGY LEADERS... Technology stocks were the strongest gainers on Thursday -- and for the entire week. Two of Thursday's biggest gainers were Broadcom and Nokia. Both reported good earnings and were rewarded for it. Broadcom gapped through its 200- day average and its March high. It did so on very strong volume. Nokia broke out of a month-long trading range -- also on big volume. Nokia was the most actively traded big board stock. Rising prices with rising volume are a good technical combination.
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SEMICONDUCTOR LEADERS... Yesterday, we showed impressive chart action in Intel and Texas Instruments. Here are three more that appear to be on the verge of bullish breakouts. The three charts are very similar, which is part of the message. It's a group thing. All three chip stock are challening their late-November highs. This week's impressive upside volume increases the odds for upside breakouts.
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TRUCKERS LEAD TRANSPORT RALLY... Transportation stocks have been doing especially well of late. The Dow Transports exceeded the 200-day average on Tuesday and haven't looked back. Volume on Tuesday was especially impressive. While airline stocks were a big part of the rally, truckers had an even stronger week. JB Hunt Transports broke out to a new 52-week high on very strong volume. New strength in transportation stocks may be an early hint that falling oil prices are starting to have a positive effect on the market and the economy. The rising price relative line shows the Dow Transports outperforming the Dow Industrials.
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RETAIL LEADERS... Some retail leaders are on the comeback trail. Best Buy hit a nine-month on Thursday. Home Depot closed over its 200-day moving average. The strongest of the three is Bed Bath & Beyond which broke out to a new high. Unfortunately, volume wasn't that impressive.
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MARKET AVERAGES CLOSE STRONG... The market ended the shortened week on a strong note. The Nasdaq gained an impressive 30 points and is nearing a challenge of its recent high. We're also encouraged by the renewed leadership by the Nasdaq market, which outperformed the broader market all week. Thursday's gain of 2.7% compares with a 1.5% gain in the S&P 500 and a 1% gain in the Dow. We started the week saying that leadership by the Nasdaq is usually good for the rest of market. So far it has been. The S&P 500 closed over the 200-day moving average. This is the first "weekly" close over that resistance barrier in more than a year. That's another encouraging sign. Just a reminder that the markets are closed for Good Friday. We'd like to take the opportunity to wish all of our members a Happy Easter and a Happy Passover.
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