SOX INDEX LEADING MARKET TO NEW HIGHS -- DOLLAR BOUNCE PUSHES GOLD LOWER
SOX LEADING STRONG TECHNOLOGY SECTOR... The Semiconductor (SOX) Index is the day's strongest group and is making technology the day's leading sector. Four of the top five percentage tech gainers are in the chip group -- Altera, Applied Materials, National Semiconductor, and Xilinx. AMAT, NSM, and XLNX are hitting new 52-week highs. Chart 2 shows Xilinx breaking through its September high to achieve today's bullish breakout. The top percentage gainer in the Nasdaq is Siebel Systems. That tech leader is also hitting a new 52-week high today.
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BOUNCING DOLLAR CAUSING SELLING IN GOLD... Strong economic news is pushing the dollar higher against the Euro and the yen. As a result, the Euro has fallen to the lowest level in five weeks. Not surprisingly, that's causing profit-taking in gold bullion which is down $6.00 today to $378. Both markets are threatening their 50-day lines. Gold stocks are also under pressure today. The CRB Index, which had been testing the highs reached earlier in the year, is also experiencing profit-taking as the dollar rallies.
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NASDAQ TESTING OLD HIGH... All the major averages have reached new highs for the year with one exception -- the Nasdaq Composite. As the next chart shows, however, the Nasdaq may also be on the verge of resuming its uptrend. The Nasdaq 100 is already in new high ground.
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