MARKET AVERAGES RESUME UPTRENDS... All the major market averages hit new 52-week highs today to keep their uptrends intact. As has been the case throughout most of the rally since March, the Nasdaq 100 is leading the market higher. It did so again today. Chart 1 shows the Nasdaq 100... READ MORE
TOBACCO STOCKS JUMP... A favorable court ruling sent tobacco stocks sharply higher and made them the day's top performers. The strongest performance was seen in RJ Reynolds. RJR surged to a new six-month high on massive volume. Altria also gapped higher on strong volume. Chart 1 Chart 2... READ MORE
LOWEST CORE INFLATION IN 37 YEARS... This morning's report on consumer inflation showed that the core CPI rose only 0.1% during August. The annual rate of 1.3% was the lowest since 1966. That drop in inflation should keep the Fed from doing anything with interest rates... READ MORE
FED LEAVES RATES UNCHANGED... The Fed did nothing today and the market liked it. The Fed statement was basically unchanged from the prior one and once again emphasized the threat of lower inflation. That meant that the Fed would hold short-term rated down indefinitely. This morning's report that... READ MORE
BOND YIELDS DROP WITH THE DOLLAR -- THE EURO RISES... This morning's report of a drop in consumer confidence has boosted bond prices and caused selling in stocks. When bond prices rise, yields fall. Chart 1 shows the 10-year T-note yield falling under its 50-day average for the... READ MORE
BASIC MATERIAL LEADERSHIP... Basic material stocks led a Friday stock market bounce. Chart 1 shows the Materials Select Sector SPDR scoring a nice uptick on Friday. Its relative strength has shown continuing leadership since mid-July. While the daily chart pattern still has a positive look to it, the weekly bars... READ MORE
DOW HOLDS 20-DAY LINE... All the major stock averages closed higher today. Breadth was positive. The Dow Industrials managed to hold its first line of support at the 20-day moving average which sits at 9429. However, volume was very light. One of the more encouraging moves within the Dow today... READ MORE
SOX IS OVERBOUGHT SHORT-TERM... The Semiconductor (SOX) Index is the down 3.9% today and is the weakest part of the technology sector. That's due mainly to a short-term overbought condition as reflected in Chart 1. After recently hitting a new 52-week high, the 14-day RSI line for... READ MORE
NASDAQ LEADS DECLINE... Pulled down by a 5% drop in the Semiconductor (SOX) Index, the Nasdaq market lost 2.6% today to lead the rest of the market lower. Some bottom-fishing was seen in the defensive drug stocks. [Please see our mid-day update on chips and drugs]. Small-cap stocks also... READ MORE
GOLD TESTING FEBRUARY HIGH... Gold bullion is up $6.10 near midday and is currently trading over $382. That puts gold at the highest price since February when it reached $390 before reversing downward. If gold prices close at the their current level, it would represent the highest close for... READ MORE
CRB INDEX REFLECTS COMMODITY BREAKOUT... The CRB Index of commodity prices is trading at a new six-month high today. Since February, the CRB has been trading sideways in a triangular consolation pattern. In late August, it exceeded its May peak to signal resumption of its major uptrend. In today'... READ MORE
BIOTECHS HAVE A STRONG DAY... While all the market averages hit new highs today, leadership once again came from small caps and the Nasdaq. Biotechs were a big part of the Nasdaq's strong advance to new high ground. The Biotech Index gained 3.8% on the day. Chart... READ MORE
BOLLINGER BAND TARGET FOR S&P 500... One of the ways to arrive at an upside target for a market advance is by applying Bollinger Bands to monthly charts. Chart 1 plots monthly Bollinger Bands for the last seven years over the S&P 500. Chart 1 shows... READ MORE
CISCO MOVES UP ON GOOD VOLUME... Cisco rallied to a new 52-week high today and was the most actively traded stock on the Nasdaq. Given the size of the stock, and its role as a Nasdaq bellwether, that was another encouraging sign for the technology sector. With Cisco having cleared... READ MORE
VOLUME AND BREADTH ARE STRONG... The month of September got off to a roaring start today. Strong economic news at the start of the day pushed bond prices lower and stock prices higher. The dollar was also strong, while gold prices lost $3.00. One of the day's... READ MORE
THE DOLLAR IS TESTING 200-DAY AVERAGE... The Dollar Index has been rallying since June within the confines of a long-term downtrend. That rally may be about over. Chart 1 shows the Dollar Index (plotted through Thursday's close) starting to struggle at its 200-day moving average. In addition, the... READ MORE
CRB STARTING TO RALLY AGAIN... Late last year the CRB Index hit a new five-year high. Since then, the commodity index has been in a large consolidation pattern. Since July, the CRB has started to rally again. This suggests that the long-term uptrend in commodity markets is resuming. Rising commodity... READ MORE
GOLD RISES OVER $370... In morning trading, the price of bullion is up $5.00. More importantly, gold is now trading over $370 for the first time in nearly three months. We take that as a bullish sign that gold may be starting another upleg. Gold still needs to clear... READ MORE
GOLD STOCKS JUMP 4.8%... The price of gold bullion gained $7.30 today to close at 374. That's the highest close in three months. Today's price jump pushed gold through the upper line in a symmetrical triangle that has existed since February. That suggests that... READ MORE
XEROX IS TOP S&P 500 GAINER... Xerox was the day's top percentage gainer in the S&P 500. Today's bounce appears to have come just in time. Chart 1 shows the stock bouncing sharply off its 200-day moving averge on the heaviest volume... READ MORE
NASDAQ COULD BE IN FIFTH WAVE ADVANCE... The recent downside correction in the Nasdaq market took place in three waves -- which qualifies that as an A-B-C correction. This week's move to new high ground signals the completion of that minor correction. While that's good news,... READ MORE
MORE TECH AND SMALL CAP LEADERSHIP... Two of the strongest parts of the market today were technology and small caps. Both influences helped the Nasdaq market close at a new 52-week high. It also did so on rising volume. That's a good combination. Small and mid-cap market indexes... READ MORE
GOLD STOCKS STILL SHINE... The two indexes of gold stocks that we track are now in confirmed major bull markets. The AMEX Gold Bugs Index (HUI), which includes only unhedged gold stocks, has been trading at a multi-year year for some time. The PHLX Gold/Silver (XAU) Index, however, had... READ MORE
BOND YIELDS ARE FALLING... After briefly hitting another yearly high last week, yields on T-bond and notes are falling today. The short-term indicators also suggest that yields may be putting in short-term tops here. The 14-day RSI is showing negative divergence near 70; and the daily MACD lines are turning... READ MORE
QQQS ARE MOST ACTIVELY TRADED UNIT... At midday, we showed the Dow Industrials hitting a new 52-week high. The biggest percentage gain, however, was seen in the Nasdaq 100 Index. The QQQs were also the the most-actively traded issue in today's strong market advance. The daily chart showed... READ MORE
RATES ARE JUMPING AGAIN... Just a day after the Fed talked about keeping interest rates low, long-term yields rose sharply. A stronger-than-expected retail report caused T-bond and note prices to fall over a point. The yield on the 10-year T-note jumped to a new yearly closing high of 4.56%... READ MORE
MARKET LIKES FED'S BALANCED STATEMENT... No one was surprised that the Fed didn't make any rate changes today. What it did do was return to its statement of a couple of months ago that deflation was still a risk, that interest rates would stay low for... READ MORE
ATLANTIC CITY MONEY SHOW... I spent Thurday and Friday at the Atlantic City Money Show. While there, I had a chance to speak with many of our members who were kind enough to come up and say hello. That's always the nicest part of appearing at these shows.... READ MORE
BOND YIELDS JUMP AGAIN... T-bond and T-note prices fell heavily today, which pushed yields higher. The 10-year T-note yield ended the day at 4.44%. That once again puts yields within striking distance of yearly highs. Yesterday, we showed that yields were testing a three-year down trendline. A new high... READ MORE
BANKS AND BROKERS ARE FALLING... Our Friday evening update showed healthcare and financials pulling the market lower. That trend is continuing in Monday trading. The bank and brokerage indexes have fallen under their 50-day averages. The Bank Index, which is the weaker of the two, is threatening its early July... READ MORE
BOND PRICES ARE OVERSOLD... Bonds bounced a bit today, which means that yields fell a bit. Chart 1 shows that the 10-year T-note yield is overbought (which means that bond prices are oversold). The daily RSI line has moved back under 70 for the first time in three weeks, which... READ MORE
HEALTHCARE AND FINANCIALS BREAK MOVING AVERAGE SUPPORT... All market sectors lost ground on Friday. Two of the biggest losers, however, were the healthcare and financial groups. The Dow Jones Healthcare Index fell decisively under its 50-day moving average. Drugs were hit especially hard. In the financial sector, banks and brokers... READ MORE
YIELDS HIT NEW 12-MONTH HIGH... A whole battery of strong economic news today appears to be confirming what the bond market has been telling us for weeks -- that the economy is getting stronger. As Chart 1 shows, that news has pushed the 10-year T-note yield to the highest level... READ MORE
DOW UNABLE TO SET NEW HIGH... The Dow Industrials made a run at the June 17 intra-day high at 9352. After hitting 9362 earlier in the day, it faded to close up only 33 points at 9233. Chart 1 shows the daily bars. It's normally not a good... READ MORE
LEADERSHIP LOSES MOMENTUM... Upside momentum in the leading market indexes continues to weaken. To demonstrate that, we're applying the Average Directional Index (or the ADX line) to the chart of the Nasdaq 100. The ADX line measures the strength of the existing trend. A rising ADX, therefore, is... READ MORE
FIDELITY SELECT GOLD IS NUMBER ONE FOR THE WEEK... It should come as no surprise to find that last week's sector mutual fund leaders were in commodity-related groups like gold and industrial materials. We showed several charts last week of individual stocks in this area breaking out to... READ MORE
TRANSPORTS HIT NEW RECOVERY HIGH... Of the three Dow Averages, the Transports are turning in the strongest performance. Chart 1 shows the Dow Transports hitting a new high for the year. Yesterday, we showed Ryder rallying as part of a rotation into cyclical stocks. Today's transport leaders are... READ MORE
50-DAY AVERAGES CONTINUE TO HOLD... We've been talking a lot lately about 50-day moving averages. That's because that's an important support line during any consoldation period -- like the one we're in now. The S&P 500 has been bouncing off... READ MORE
DRUG INDEX IS SLIDING... Drug stocks are coming under some heavy selling pressure today. That's reflected in the AMEX Pharmaceutical Index, which slipped under its 50-day line last week. The DRG appears headed toward its May low and its 200-day line. Disappointing earnings from Merck is part of... READ MORE
SURGE OVER 4%... The yield on the 10-year T-note jumped to 4.17% today, which was the highest close in since last December. We offered the view last week that long-term rates had probably hit bottom. Today's surge in long-term rates strengthens that view. We also suggested last... READ MORE