Technical action by S&P 500 stocks was bullish yesterday. Sixteen S&P 500 stocks broke resistance and one stock broke support. Hotel stocks were prominent on the list of stocks breaking resistance following news that Hilton Hotels will be taken private.
S&P 500 stocks breaking resistance
Stock Symbol Previous New
Trend Trend
Apple AAPL Up Up
Bausch & Lomb BOL Up Up
Bemis BMS Down Neutral
Electronic Arts ERTS Down Up
Express Scripts ESRX Up Up
Hilton Hotels HLT Down Up
Host Hotels HST Down Neutral
IBM IBM Up Up
International Paper IP Up Up
Laboratory LH Down Up
MeadWestvaco MWV Up Up
Quest Diagnostics DGX Up Up
Reynolds American RAI Neutral Up
Starwood Hotels HOT Up Up
Tiffany TIF Up Up
Wyndham WYN Neutral Up
S&P 500 stocks breaking support
Stock Symbol Previous New
Trend Trend
FPL Group FPL Neutral Down
Technical action by TSX Composite stocks also was bullish. Six TSX stocks broke resistance and two stocks broke support. Mining stocks dominated the list of stocks breaking resistance.
TSX stocks breaking resistance
Stock Symbol Previous New News
Trend Trend
Agnico Eagle AEM Down Up
Eastern Platinum ELR Down Neutral
Hudbay Mining HBM Down Up
Norbord NBD Up Up
Nova Chemicals NCX Up Up Upgraded by Bear Stearns
Shore Gold SGF Down Up
TSX stocks breaking support
Stock Symbol Previous New
Trend Trend
Galleon Energy GO.A Up Down
Nortel NT Neutral Down
Inter-day Comments for Thursday July 5th
The focus this morning is on the Chinese market. Last night the Shanghai Stock Exchange Index fell another 5.2% to 3616. The Index is down 16.2% since June 20th. Weakness in the Chinese market is bothering other world equity markets. Most European equity markets are slightly lower. U.S. equity indices are mixed in overnight trading.
Chart courtesy of StockCharts.com www.stockcharts.com
Interest rates also are a focus this morning. The Bank of England increased its overnight rate by 0.25% to 5.75%. The European Central Bank maintained its overnight rate at 4.00%. Both central banks are expected to raise their overnight rate again during the next two months. The Bank of Canada and the Bank of Japan also are expected to raise their overnight rate shortly. Rising interest rates by central banks in developed nations at a time when the Federal Reserve is locked into a Fed Fund rate at 5.25% is placing pressure on the U.S. Dollar and U.S. interest rates. The yield on ten year U.S. treasuries increased 5 basis points to 5.10% in overnight trading.
Chart courtesy of StockCharts.com www.stockcharts.com
Interesting Charts
Technical action by gold stocks continues to improve. The AMEX Gold Bug Index closed at a nine month high yesterday.
Chart courtesy of StockCharts.com www.stockcharts.com
Many gold stocks in the TSX Composite Index are forming base building patterns. Yesterday, Agnico Eagle broke above a base building pattern (actually, a head and shoulders reversal pattern) and established an intermediate uptrend. Next upside technical target is $47.35.
Chart courtesy of StockCharts.com www.stockcharts.com
The buy out of Hilton Hotels stimulated buying in hotel stocks in anticipation of additional privatization in the sector.
Chart courtesy of StockCharts.com www.stockcharts.com
Speculation of additional takeovers in the Canadian base and precious metals sector continues to percolate.
Chart courtesy of StockCharts.com www.stockcharts.com
Weekly Bullish Percent Indices for U.S. Sectors
Bullish Percent Indices on average were unchanged last week. Five indices moved higher, four indices were unchanged and two indices declined. All of the changes were insignificant. Two indices currently are above their 15 day moving average, one index was at its 15 day moving average and eight indices were below their 15 day moving average. All indices are overbought. With the exception of the telecom and technology indices, all have established intermediate downtrends.
All charts courtesy of StockCharts.com
Disclosure: Mr. Vialoux owns a conservative option strategy in Agnico Eagle. He does not own other securities mentioned in this report.
July 06,2007
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