Wednesday, April 25, 2007

Is 13000 A Lucky Number?

This is an updated chart of the S&P 500 with its advance/decline moving average. It is in a rising channel that looks like it could for a triangle. The advance/decline moving average shows that there has not been a lot of bullish steam underneath this rally. That could change after earnings season, but right now it questionable how strong this rally is. It is being carried by a few stocks have some really nice moves, rather than a broad market move. Below is a chart of Boeing, which is one of the leaders.

Boeing has had great volume as of late and has clearly broken above its previous resistance level. This stock should be looked at on any pull back. It has global exposure to the growing world economies. It is not totally insulated from the talked about economic weakness here in the U.S., but it is not a one trick pony. Along with its normal line are airplanes, it is also heavily involved in products for the defense sector. Below are some stocks that do business with Boeing and should be watched.

Allegheny Technologies Incorporated (ATI) is a diversified specialty metals producer. The Company operates in three segments: High Performance Metals, Flat-Rolled Products and Engineered Products. Markets include aerospace, defense, chemical process industry, oil and gas, electrical energy and medical.

Precision Castparts Corp. (PCC) manufactures complex metal components and products, investment castings, forgings and fasteners/fastener systems for aerospace and industrial gas turbine applications.

Kennametal Inc. (Kennametal) is a global supplier of tooling, engineered components and advanced materials consumed in production processes. It provides metal cutting tools and tooling systems. Kennametal specializes in developing and manufacturing metalworking tools and wear-resistant parts using a specialized type of powder metallurgy.

Some of these company's charts might look extended. It makes sense to use any market weakness to look for pull backs and buying points. Until fundamentals changes, watch for pull backs and support areas for entry points.


This is a chart of the Nasdaq 100 index, along with its advance/decline moving average. Yesterday this was a stronger market than the S&P and the Dow30. Volume was good also. After hours Amazon had nice earnings, so things should carry over into today. After the close today Apple reports along with AKAM,PMCS,FFIV, and some other technology names every one follows. This could be a good setup for tomorrow when Microsoft and Broadcom report earnings. If things go well and today Fed's beige goes to plan, this could carry the tech move into the weekend.

There are the tech names that everybody follows, but there are also some behind the scene companies that are worth watching. These companies make all the components and parts that go into the finished products. The make the printed circuit boards and internal parts that people don't see. Some clues as to how healthy the technology sector is can be seen in how these stocks perform Below is a sample of a few with brief descriptions.

Benchmark Electronics, Inc. (Benchmark) is in the business of manufacturing electronics and provides its services to original equipment manufacturers (OEMs) of computers and related products for business enterprises, medical devices, industrial control equipment, testing and instrumentation products, and telecommunication equipment.

Celestica Inc. (Celestica) provides a range of services and solutions to original equipment manufacturers (OEMs) in the communications, computing, industrial and consumer sectors. The Company operates a global manufacturing network with operations in Asia, the Americas and Europe.

Jabil Circuit, Inc. (Jabil) is a provider of worldwide electronic manufacturing services and solutions. The Company provides electronics design, production, product management and repair services to companies in the aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, storage and telecommunications industries.

KEMET Corporation (KEMET) manufacture tantalum capacitors, multilayer ceramic capacitors (MLCC) and solid aluminum capacitors. KEMET manufactures a line of capacitors, including tantalum, multilayer ceramic and solid aluminum.

Solectron Corporation provides electronics manufacturing and supply chain services to original equipment manufacturers (OEMs) worldwide. As a value-added contract manufacturing partner to OEMs, the Company's customers contract with it to build their products or to obtain services related to product design, manufacturing and post-manufacturing requirements. Solectron designs, builds, repairs and services products that carry the brand names of its customers.

Vishay Intertechnology, Inc. (Vishay) is an international manufacturer and supplier of semiconductors and passive electronic components. Semiconductors include diodes, transistors, rectifiers, power integrated circuits (ICs), infrared (IR) transceivers, IR sensors and optocouplers. Passive Components include resistors, capacitors, transducers and inductors.


Interesting article on home loans and the housing market.

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