STOCK LEADERS AND LAGGARDS IN MAJOR AVERAGES -- COPPER TIRE, HONEYWELL, PANAMSAT LEAD -- APPLE, IBM, MILLIPORE LAG
HONEYWELL IS DOW'S STRONGEST STOCK... Honeywell is the Dow's top percentage gainer today. Chart 1 shows the stock moving up to challenge its September high near 30. A close above that chart barrier would register a new 52-week high. The relative strength line along the bottom shows that HON is just starting to outperform the Dow. The monthly bars in Chart 2 show the stock emerging from a four-year decline. It's moving above its 20-month moving average line for the first time in two years. The upper Bollinger Band gives a potential target to 38.
Chart 1
Chart 2
IBM DISAPPOINTS... The daily chart shows Big Blue tumbling this morning on heavy volume. The first critical test for IBM will be the late September low near 88 and its 50-day moving average. The weekly bars in Chart 4 also show why today's action is discouraging. The stock recently broke through chart resistance at 90. We don't like to see stocks fall too much below their breakout points. Today's downside action raises a caution flag. A close below the late September low would negate the recent bullish breakout.
Chart 3
Chart 4
COOPER TIRE IS BIGGEST S&P GAINER -- MILLIPORE IS THE BIGGEST LOSER... Cooper Tire is the day's biggest percentage gainer in the S&P 500. The daily chart shows the stock breaking through its August high to reach a new 52-week high. Millipore is the S&P's biggest percentage loser today. Chart 4 shows the stock tumbling on very heavy volume. It's broken its 50-day line and is threatening its August low.
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Chart 6
APPLE IS DOWN, PANAMSAT IS UP IN NASDAQ 100... Apple Computer is the biggest percentage loser in the Nasdaq 100 today. After just hitting a 52-week high, Apple is falling today on heavy volume. So far, there hasn't been any serious chart damage done. The heavy volume, however, is a caution flag. The day's top gainer for the NDX is PanAmSat Corp. The stock has been moving up all week on very strong volume.
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