Purely Technical Weekly Newsletter (November 12, 2006) - Featured Article:
The following are highlights and a featured article from this week's Purely Technical. You can receive the full newsletter for FREE, by visiting our home page - www.themarketmessenger.com - and filling in the "Join Our Newsletter" form.
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Firstly, a couple of highlights from this issue...
Precious, Industrial Metals Parting Ways?
Bullish Developments in Energy Complex
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Let's move on to the featured article...
U.S. Industry Indices
The DJUSOQ, below, has not been performing as well as the preceding two indices have over the past few months. However, with a breaking of the May-Oct downtrend, and a subsequent successful retest, it seems like this index is ready to attempt a move to the level of the highs seen earlier this year.
Having taken a thorough look at the Energy sector, let’s now move on to other sectors that are looking promising.
The Construction & Materials index (see chart above) has broken above a basing pattern with resistance at 315, and out of a bull flag. Targets from these patterns are 350 and 340, respectively. Stocks from this sector that are in our Long Picks list: ASD, FLR and USG
Last week, we’d highlighted the fact that the Health Care index was showing bearish developments on RSI and MACD. This week, the index confirmed those beliefs as it smashed through support at 328. RSI and MACD are each now showing a negative centerline crossover.
We have a handful of stocks from this sector, including WYE, TEVA, GSK, and LLY, in our Short Picks list.
Last week, we’d taken a look at the DJUS Telecommunications index and spoken of the possibility that it was ready to break a rising trendline. This week, we see that one of the two main sub-indices – the Fixed Line Telecommun-ications index (below) has made a negative centerline crossover on RSI, after having broken its uptrend last week.
One index that we thought had broken support last Friday, the DJUSCG, bounced right back this week and has actually gone on to make new highs. Given price and RSI centerline support, the uptrend appears safe for now.
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Market Round-up
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Bullish Developments in Energy Complex
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U.S. Industry Indices
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U.S. Stock Markets in Limbo
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Precious, Industrial Metals Parting Ways?
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International Stock Markets Showing Bullish Breakouts
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