Daily Picture

Support/Resistance for Friday

Nasdaq

Resistance

1979
1970
1960
1935
1915-1920
1898-1903-Weak

Support

1875-1880-VERY STRONG
1850-1855-Very Weak
1836-1841
1815-1819-Weak
1750-1755

QQQ

Resistance

36.60
36.15
35.65-Medium
35.35-Weak

Support

34.75-VERY STRONG
34.45-Weak
34.00-Medium
33.70-33.80-Weak

Your Daily CAN SLIM Update Courtesy of http://GabrielsMoneyPage.com

Daily Morning Update: 01 October 2004

The major averages ended the day mixed on Thursday, with the Dow suffering the worst blow. One of its stocks, Merck (MRK), made up most of the Dow?s decline, and added to the very heavy volume day. The S&P fell on heavy volume, but the loss was only a fraction of a point. The S&P also closed in the upper half of the day?s trading range. The Nasdaq ended in positive territory, but it gained only a few points. Volume was also heavy on that exchange.

The Dow is seems to be having the most difficult time lately, as it just closed back below its 50-day line. The S&P 500 is faring better, although it may be running into resistance as it tries to move back above its 200-day line. The Nasdaq may also be hitting resistance as it makes its way back to the 1900 level.

Individual stocks continued to move in a positive fashion on Thursday. New breakouts are appearing, and an increasing number of stocks seem to be preparing for moves of their own. Recent breakouts are also extending their gains. The action of leading stocks gives the rally an underlying strength, which may keep it going for a while.

New Breakouts: One new breakout appeared on Thursday.

StockCiphering.com Nasdaq Weather Report for Oct01,2004

WOW!!!

October has started with a bang, to say the least!!!

What an astonishing day!

The Nasdaq exploded up 45.36 points (2.39%) on volume that was 8.8% above yesterday's level and 20.3% above average.

With that kind of huge move and huge volume and with it being the fourth Accumulation Day in a row AND with a new 20-day closing high, today's score counted BIG.

Yesterday's "Mostly Cloudy" weather bypassed "Partly Cloudy" and went right to "Mostly Sunny":

--->

Today's close was the highest we've seen since Jul09.

The move today was the highest percentage move since Mar25 when we flew up 3.02%. Today was also biggest move in terms of points since Mar25 (57.69 points).

The last time we were over 20% above average volume in the Nasdaq (on an up day) was Jun25 when we inched up 0.49% on volume that was 58.2% above average. Before that you'd have to go aaaaaallllll the way back to Jan16 and Jan20.

Can you say "Bull Market"? I know you can.

I won't even bother posting a forecast for Monday. It's going to be sunny for quite a while I'm sure.

What was this all about? Now can the nas get over the 200dma?

Well, I see Brad is Mr. Super Bull right now...I'm not so sure...I will have to do some serious DD this weekend.

To be honest, I fully expected to see 1915-20...I posted that around a couple of days ago...But I was very surprised that we kept going and even went past the 1935 resistance level.

The Q's...Expected a turnback at 35.65...didn't happen...but the next level 36.15 held...I'm just going on gut right now...should have a better idea by Sunday night.

For my DT'ing it was not really that great...I was up good the last 2 weeks and the last 2 days were OK...but it was not that much. I am not trading the first 1/2 hour...I kept waiting for p/b's but they were not happening...at least on what I was watching. But at about 12:15pm PDT things started happening and today worked out OK thx to IMOS.

Well...it's been tough...but it has been fairly profitable lately and it has sure been fun.

IIC -- I just posted a comment which might interest you in S's corner. FYI Sally

I generally agree with Brad about bullishness for the market. Also, for CANSLIM investors (which I am not), it was a classic confirmation day of a rally. I would additionally note that the market action arrived on the first day of the new quarter, and possibly indicates bullish sentiment about a year end run up by institutions.

I will be looking more closely this week for a leader of the new rally. While the SOX held up above 400 by the end of Friday, I think it will take another sector or group to lead a classic rally. The S&P 600 (and 400) appear that they would lead another rally, which would be good. The selling on higher volume on the S&P 500 on Thursday (while others went up) suggests rotation. I may just end up trading the rotation from semi's, to value stocks (S&P 500), to S&P 600 / 400, and to precious metals (on defensive days). However, this topic needs further analysis and testing. I would prefer to pick just a few stocks from each group and focus on trading them for the next couple of weeks. Here is a chart for the S&P 600 which appears to have initiated a new breakout on Friday.

http://trimurl.com/IR

In the interim, I will be day trading less and swing trading more. I have noticed my profitability weaken as a result of not holding ovenight this past week. All my overnight holds were big winners this week, and my day trades were weak.

While oil prices and supply still pose rotational problems for the markets, the volume on Thursday and Friday (and end of day buying on each day) cannot be ignored. Because of this, I think a change in my trading strategy (more overnight holds) and an alteration in planned trade set ups (less classic and more eclectic short term patterns) is due. Altering my trade set ups will hopefully allow me to counter-trade those investing in more classic patterns.

We'll see soon enough ...

Economic Data and other events
scheduled for October 4 - 8

MONDAY
Factory Orders for August (10 am ET)

Treasury announces 5 & 10-year note auctions (11 am ET)

Treasury auctions 3&6-month bills

TUESDAY
Weekly Chain Store Sales (9 am ET)

ISM Services Index for September (10 am ET)

Challenger Layoffs Report for September (10 am ET)

WEDNESDAY
Treasury auctions 5-year notes

THURSDAY
Weekly Initial Jobless Claims (8:30 am ET)

Treasury auctions 10-year TIPS

Fed Chairman Greenspan speaks at Fed conf. (1:30 pm ET)

Consumer Credit for August (3 pm ET)

Weekly Money Supply (4:30 pm ET)

FRIDAY
Employment Report for September (8:30 am ET)

Wholesale Inventories for August (10 am ET)

I also believe Retail SSS will come out on 10/7

EPS this week...this is not a complete list:

Not many this week...earnings season will kickoff the week after next.

Company Name Symbol Date Time Reuters YrAgo

Your Daily CAN SLIM Update Courtesy of http://GabrielsMoneyPage.com

Daily Morning Update: 04 October 2004

The market capped off a positive week on Friday with major gains on heavy volume. The Dow moved back above its 50-day line and closed near its high for the day. The S&P 500 and Nasdaq fared much better. Both indexes vaulted to new highs for the rally and closed near the top of the day?s range. The S&P 500 is the only index out of the three that is above both its 50-day and 200-day lines. It would be good to see the Dow and Nasdaq mirror that feat in the coming weeks.

The Nasdaq, along with the other major averages, had been suffering from low volume moves for much of the rally. Things have turned around during this last week, though, as gains were driven by heavy and increasing volume. Friday?s trading on the Nasdaq saw the heaviest volume day since July of this year. That is a welcome improvement, and seems to be a signal of strength for the rally. It is still important to watch out for low volume gains and distribution days on the major averages, though, as that will be the first clue that the rally could be ending.

Leading stocks continue to push higher with the market. Our list of breakouts seems to be growing almost daily, which is a good confirmation of the gains we are seeing on the major averages. Investors should watch breakouts carefully to weed out laggards as early as possible. Many stocks may make gains when the market thrusts higher, but not all breakouts will be successful.

New Breakouts: Two new breakouts appeared on Friday.

http://www.amateur-investors.com/Weekend_M...is_Oct_2_04.htm

StockCiphering.com Nasdaq Weather Report for Oct04,2004

Chalk up a FIFTH Accumulation Day in the Nasdaq!

The index advanced another 0.53% on volume that was 1.4% higher than Friday's volume and was 20.9% above average.

The weather remains "Mostly Sunny":



But the high momentum of the last 5 Accumulation Days ensures that on any lighter-volume move tomorrow will bring about "Sunny" weather:



We haven't experienced that kind of weather since a brief 3-day period from May28-Jun02.

Today we gapped up and ended in a gravestone doji. My Nasdaq analysis is:

Mostly cloudy, lightning, rain, and possibility of a torrential downpour!

the Nasdaq found resistance today at the 200 dma.

Your Daily CAN SLIM Update Courtesy of http://GabrielsMoneyPage.com

Daily Morning Update: 05 October 2004

The major averages continued to press higher on heavy volume Monday, but there are signs that they may need to consolidate their recent gains. The Dow moved closer to its 200-day line, but closed in the bottom half of the day?s range with only a minor gain. The S&P 500 looked better, as it made a new high for the rally. The S&P 500 is slowly closing in on its high from March, but it may run into resistance soon. The Nasdaq gapped up on Monday and ran into resistance at its 200-day line. It closed with a minor gain, but finished near the bottom of the day?s range.

Monday?s heavy volume with only minor point gains may signal that some investors are selling into the rally. They may be taking profits and could be causing the major averages to stall. That should not be a problem, so long as the number of sellers dwindles as the market consolidates. Look for decreasing volume when the major averages give back some of the ground they have taken.

The major averages may not have put in a stellar performance on Monday, but leading stocks more than held their own. Numerous new breakouts appeared from many different industries, and recent breakouts added to their gains. That shows a more broad-based rally, which is necessary for the market to continue moving higher.

Our Current Breakouts list has been growing rapidly, and now looks similar to the lists that we had during the rally in 2003. That is a good sign, but it could lead some investors to get careless. Here is a healthy dose of reality: while most of our breakouts are in positive territory at the current time, not all of them will be successful. In fact, more than a few could end up making gains and then fall back into their bases. That is the nature of following a strategy that is based on CANSLIM. The important point is to get rid of the lagging stocks as soon as possible and whittle your portfolio down to the strongest breakouts.

Times seem good right now, and that may continue for weeks or even months. However, the rally will end eventually, so always be prepared to take profits. If you aren?t prepared, then you could end up giving back everything. Partial profits are a good idea if you have any reservations about holding a stock.

New Breakouts: Three new breakouts appeared on Monday.

Support/Resistance For Tuesday

Nasdaq

Resistance

2050-2055
2023
1996
1980-Very Weak
1970
1960

Support

1942-Very Weak
1935
1920
1903
1890-1995
1877-Medium
1865-Medium
1850-1855-Very Weak
1835-1841-Medium
1815-1819-Very Weak
1750-1755

QQQ

Resistance

37.75
37.15
36.80
36.60

Support

36.15
35.65-Medium
35.30
34.95-Strong
34.75-Very Weak
34.45-Medium
34.00-Medium
33.70-33.80-Weak

I'm undecided as to which day the NAZ will pullback strong...but it will be soon...IIC