Daily Picture

Brad, I had not gone into the program to see, but will just take your word for it. My hunch when I got up today was it was not too bad looking. Even with 7 of 9 down. I added to one, and bought another.

Good luck to all of you this week. I may come back to civilization for one night. But for the most part out of touch this trading week.

braz

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

Daily Morning Update: 11 October 2004

The major averages fell again on Friday, although they did manage to avoid a distribution day. The Dow dropped below its 50-day line and moved back down near the 10,000 mark. It bounced off that level at the end of September and may have to test it again in the coming week. The S&P 500 also fell but found support at its 200-day line. It would be a good sign to see continued support at that level in the coming week, as that would show institutional support. The Nasdaq also fell on heavy volume, but it held at its 10-day line.

The last two selling days put the Nasdaq in negative territory for the week. That is not good, especially since the weekly volume was the heaviest since the end of July. It is also worrisome to see the Nasdaq end on a bearish note because it is the leading index for the rally. We will be looking for institutions to buy stocks in the coming week and support the major averages. If they do not, then the rally could be headed for trouble.

Leading stocks fell for the second day in a row, and they are now showing some signs of trouble. Most of the selling has come on lower volume, but it is not good to see a lack of strength in individual stocks when the market wavers. That makes the rally seem a little weaker under the surface. There are also a lot of breakouts sitting in precarious positions. If they can recover in the coming weeks, then the rally may survive. If they continue to fall and eventually fail altogether, then investors may want to step back. Remember to cut losses quickly when a stock is in trouble. It may also be a good idea to take partial profits if a breakout starts to show multiple warning signs.

http://www.amateur-investors.com/Weekend_M...is_Oct_9_04.htm

Calendars:

Economic Data and other events
scheduled for October 11 - 15

MONDAY
Columbus Day Holiday - stocks open, bond market closed

TUESDAY
Weekly Chain Store Sales (9 am ET)

Treasury auctions 3&6-month bills

WEDNESDAY
EIA Petroleum Status Report (10:30 am ET)

Treasury Budget Statement for September (2 pm ET)

THURSDAY
Import/Export Prices for September (8:30 am ET)

Weekly Initial Jobless Claims (8:30 am ET)

International Trade Balance for August (8:30 am ET)

Weekly Money Supply (4:30 pm ET)

FRIDAY
Retail Sales for September (8:30 am ET)

Producer Price Index (PPI) for September (8:30 am ET)

NY Empire State Index for October (8:30 am ET)

Industrial Production & Capacity Util. for September (9:15 am ET)

U. of Michigan Consumer Sentiment Index for October (9:45 am ET)

Business Inventories for August (10 am ET)

Has the Nasdaq formed an Island top now ?

Similar...but technically no because there was no gap down...it just tanked...but at one point Friday the Naz was actually about 1 point higher than the Thursday close...Good question though.

Here is the definition:

Island reversals are isolated data points separated by gaps. After an extended rally the stock "gaps" higher, that is, it proceeds to open outside of the most recent trading range. After trading in the new higher range for several sessions, a second gap occurs only this time the move is lower.

StockCiphering.com Nasdaq Weather Report for Oct11,2004

The Nasdaq didn't budge much today, just moving up 0.46% on very low volume that was 30% below Friday's level (perhaps because of Columbus Day).

The weather has changed from "Sunny" to "Mostly Sunny":

--->

If we drop about 20 points tomorrow on heavier volume, then the weather will change to "Partly Cloudy":



Other than that, it looks like we'll remain in "Mostly Sunny" weather for the time being.

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

Daily Morning Update: 12 October 2004

The major averages gapped up on Monday and ended in positive territory for the day, but volume was light. The low volume levels can be attributed to the holiday weekend. Investors can?t read too much from that type of trading day, but it was encouraging to see a change from the last two sessions of heavy selling. Tuesday should be a more normal day for the overall market.

There wasn?t a lot of action with breakouts, as many held their ground and traded on low volume. There are still quite a few stocks setting up for breakouts, but they need the market to get back on track. Investors should be careful with any current positions. Many new breakouts sit close to their pivots and could easily start to fail. This is always a difficult time during a new rally, as the market and leading stocks try to decide whether to add to their recent gains or throw in the towel. Hopefully, the rally will get some legs and keep new breakouts moving in the right direction. Investors should still be ready to cut losses in case a large number of breakouts start to fail.

Support/Resistance For Tuesday

Nasdaq

Resistance

1996
1980-Very Weak
1970
1960
1936-1942-Weak

Support

1915-1920-VERY STRONG
1892-Very Weak
1877
1865
1836-1841-Medium
1815-1820-Very Weak
1750-1755

QQQ

Resistance

37.15
36.80-Very Weak
36.60
36.15

Support

35.60-Strong
35.10
34.95
34.75
34.45-Medium
34.00-34.05-Medium
33.70-33.80-Weak

StockCiphering.com Nasdaq Weather Report for Oct12,2004

Today was technically a Distribution Day. The Nasdaq ended the day down a meager 0.19% on volume that was 29.2% higher than yesterday's level. Of course, practically ANY volume level would be higher than yesterday's Columbus Day level.

The Nasdaq actually gapped down and pushed lower for the first half hour of trading, falling as much as 1.28% at its low. But then it picked itself up and recovered, actually entering positive territory for about 5 minutes, but it couldn't quite hold that and ended up with a very small loss.

So even though today was a technical Distribution Day, the Nasdaq showed some real strength in its recovery.

YHOO and INTC both announced earnings after the bell, and they are both up at least 2-3% after hours, so that looks like a positive for tomorrow's market.

Today's weather remained "Mostly Sunny":



Chances are that tomorrow's weather will be "Partly Cloudy" unless we have a big Accumulation Day of about 1.8%:

Support/Resistance For Wednesday

Nasdaq

Resistance

2050
2025
1996
1980-Very Weak
1970
1960
1935-1942-Weak

Support

1915-1920-VERY STRONG
1903-Very Weak
1892-Very Weak
1877
1862
1836-1841-Medium
1815-1820-Very Weak
1750-1755

QQQ

Resistance

37.15
36.80-Very Weak
36.60
36.15

Support

35.65-Strong
35.30
35.10
34.95
34.75
34.45-Medium
34.00-Medium
33.70-33.80-Weak

Defense Contracts Announced Tuesday



The following defense contracts were announced Tuesday.

Boeing Co. (BA), St. Louis, Mo., received a $766.7 million modification to a previously awarded other transaction for prototypes agreement to design, develop and fabricate three full-scale X-45C Joint Unmanned Combat Air Systems air vehicles and two mission control elements, integrate them with the J-UCAS Common Operating System to meet Air Force and Navy mission capability objectives, and conduct an operational experiment and assessment. Work will be performed in St. Louis, Mo. (80 percent), El Segundo, Calif. (4 percent), Cincinnati, Ohio (2 percent), Goleta, Calif. (2 percent), Lynn, Mass. (2 percent) and multiple other locations (one percent or less at each location) and will be completed in March 2010.

Boeing Co's (BA) Aerospace Operations, Oklahoma City, Okla., received an estimated value $22.5 million modification to a previously awarded firm-fixed-priced, time and materials, cost-reimbursement contract to exercise an option for the procurement of spare parts for the E-6 aircraft and for the repair, modification and return to ready-for-issue E-6 aircraft components. Work will be performed at Tinker Air Force Base, Midwest City, Okla., and is expected to be completed in September 2005.

Northrop Grumman Corp.'s (NOC) Newport News Shipbuilding, Newport News, Va., received a $6.1 million modification to a previously awarded contract for an additional year of standard Navy valve yard services. Work will be performed in Newport News, Va. Contract funds in the amount of $5.3 million will expire at the end of the current fiscal year.

Raytheon Co. (RTN), Tucson, Ariz., received a $78.2 million firm fixed price contract to provide for Air-to-Ground Missiles, AGM-65G2 Tactical Missile quantity 360; Air-to-Ground Missiles AGM-65G2 Spares GCS, quantity 15; TGM-65G Training Missile quantity 8; TGM Training Missile quantity 10; TGM-65G2 Spare Guidance Control Section quantity 6; Signal Processing Unit, quantity 3; AGM-65 Missile Load Trainer quantity2; AGM-65 Missile Maint Trainer quantity 2. This effort supports the Weapon System AGM-65 Maverick Missile. This effort supports foreign military sales to Poland. The work will be complete by July 2007.

NAVISTAR International Corp. (NAV), Knoxville, Tenn., received a delivery for $2.9 million as part of a $5.8 million firm-fixed-price contract for 24 6X4 Recovery Trucks. Work will be performed in Garland, Texas, and is expected to be completed by Oct. 8, 2006.

http://www.amateur-investors.com/Mid_Week_...is_10_12_04.htm

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

Daily Morning Update: 13 October 2004

The major averages recovered from an early morning drop on Tuesday to end only a few points in negative territory. The Dow fell on increasing volume but closed in the upper half of the day?s range. It will have to break through resistance at its 50-day line soon to continue the rally. The S&P 500 also fell on increasing volume and tested support at its 200-day line. Although it closed above that trend line, it may test it again in the coming sessions. The Nasdaq almost tested the 1900 level and continues to sit between its 200-day and 50-day lines.

There were some positive earnings after the close on Tuesday from high profile tech companies (YHOO and INTC), but that does not guarantee a positive day on Wednesday. Investors should continue to wait for solid breakouts to appear before taking new positions, as well as cut losses if the rally runs into trouble.

Leading stocks traded in a mixed fashion on Tuesday, but the action was more revealing under the surface. Some of the cyclical stocks suffered the biggest losses, while tech related stocks seemed to gain strength. Maybe that action occurred because of the night?s earnings announcements, but there could be another reason. It almost seems as if the market may be rotating leadership from cyclical stocks to the more growth-oriented industries. That would be a very positive sign for the rally, but we will have to wait longer before a more definite trend can be determined.