Daily Commentary for Wednesday, February 7, 2007
Written By: Teresa Appleton Stock Forum ID: Teresa
Tuesday closed with the Nasdaq 100 red, but the other broader markets- Nas composite, S&P 500 along with the Dow all slightly green on the close. Volume perked up to close over yesterdays anemic volume, leaving accumulation days for the NYSE and Nasdaq. Early weakness took out yesterdays lows to leave the bears thinking finally a pullback, but by mid lunch we found the dip buyers and rallied into the close.
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After hours Cisco’s much awaited earnings, dropped then rallied, much like the markets during the day. Strong conference call and earnings pushed the stock higher. This sent the Nasdaq futures up and they are remaining up tonight as I type this. The other futures are quiet and pretty flat on the session. A strong opening is expected, will CSCO be enough to sustain the strength? Tech has been undecided and lagging the move, so now we have a catalyst to move things.
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Gold rallied today to close up $2.10 on the day at $653.00. Gold is likely to remain active along with the dollar off the ECB and G7 meetings later this week.  Crude rallied up near $60.00 again to reject for the second day. Closing up 14 cents at $58.88.Â
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Wednesday we can look for a higher opening and for a move into resistance. I will not be quick to jump on the pullback bus until there is reason to think we pull in. As things look now every dip has been bought, so for now we’ll assume that stands. This could be a sell the news, because CSCO has had a very good move up in recent months. But don’t assume that and short every move, let things setup into the bigger levels of resistance on the charts below. The SOX held the test of the 200dma, which is great support. 468.88 resistance has held the SOX from higher, a break there would allow the sector to move. So we’ll watch that closely.
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Economic Data for the week of February 5-9:Â Wednesday 08:30 Productivity Prel, 10:30 Crude Inventories, 15:00 Consumer Credit, Thursday 08:30 Initial Claims, 10:00 Wholesale Inventories, 10:30 Natural Gas Inventories, 12:00 Chain Store Sales, 04:30 Money Supply, Friday no data is due out, 08:45 St Louis Fed Reserve Bank Pres Poole speaks, 01:00 Dallas Fed Reserve Bank Pres Fisher speaks.
Some earnings for the Week: Wednesday pre market ACS, APOL, BCRX, CI, ICE, OSIS, RL, SKYW, WHR and after the bell AFFX, ACL, ALKS, EQIX, MXIM, OIS, PACR, PRU, SCSS, SINA, SNIC, ULTI, UTI, DIS. Thursday pre market AET, LNT, UHAL, CSK, DO, DJO, ESRX, FLIR, HNT, LVLT, MAR, MLM, MMS, MDTH, MLNM, PENN, PEP, Q, TBL, TOL, WLT, WMG, WMI and after the bell ANDE, BMC, BRCM, ELY, DRIV, ENER, GTW, LPNT, MFE, NAPS, PNRA, TQNT, UNTD. Friday pre market AG, CVH, HAS, MA, QMED, WY.
SOX (semiconductor) closed –2.51 at 464.61. Support: 463.05, 460.71, 458.54, 456.37, 454.73. Resistance: 468.88, 473.49, 473.49, 476.97.
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