Wednesday, September 5, 2007

Triangle Patterns And S&P vs NDX

A recent scan of some large cap stocks yielded some fairly decent triangle patterns. Below are a few charts showing these patterns along with their relation to the 200 and 50 day moving averages for each stock. These patterns usually set up some short term trades that are very profitable. A review of trading triangles can be viewed in a previous post.

KLA-Tencor Corporation provides process control and yield management solutions for the semiconductor manufacturing and related microelectronics industries worldwide. The company engages in the design, manufacture, and sale of equipment consisting of patterned and unpatterned wafer inspection, optical overlay metrology, electron beam review, reticle and photomask inspection, and film and surface measurement tools, as well as yield analysis and defect classification software to provide fab-wide yield management solutions. These solutions are optimized for manufacturing process cells used in integrated circuits (IC) production, including lithography, deposition, etch, and chemical mechanical planarization. Its offerings include defect inspection, metrology, product related services, and software. Defect Inspection tools are used to detect, count, classify, and characterize yield failures caused by particles, pattern defects, surface anomalies, and electrical issues during various stages of the IC manufacturing process. The company offers metrology and process window optimization products, which provide IC manufacturers the ability to maintain control of their processes. KLA-Tencor Corporation delivers yield management services spanning various technology nodes. Its software offers productivity and analysis solutions that translate inspection and metrology data into consolidated information that can reveal process problems and help semiconductor manufacturers develop long-term yield improvement strategies. The company's software solutions include yield management and analysis solutions and computational lithography solutions. In addition, it serves the wafer manufacturing, data storage, and other industries. KLA-Tencor Corporation markets its products primarily in the United States, Japan, Taiwan, Korea, Europe and Israel, and the Asia-Pacific region. The company was founded in 1975 and is headquartered in San Jose, California.

Nisource, Inc., an energy holding company, through its subsidiaries, provides natural gas, electricity, and other products and services. The company operates in four segments: Gas Distribution Operations, Gas Transmission and Storage Operations, Electric Operations, and Other Operations.

PerkinElmer, Inc. engages in the design, manufacture, and marketing of scientific instruments, consumables, and services. It operates in two segments, Life and Analytical Sciences, and Optoelectronics.

Stryker Corporation engages in the development, manufacture, and marketing of orthopedic products and medical specialties in the United States. It operates in two segments, Orthopedic Implants and MedSurg Equipment. The Orthopedic Implants segment sells orthopedic reconstructive, trauma, spinal, and craniomaxillofacial implant systems, trauma implant systems, joint replacement products, knee implant systems, hip implant systems, bone cement, and the bone growth factor OP-1 products. The MedSurg Equipment segment offers surgical equipment; surgical navigation systems; endoscopic, communications, and digital imaging systems; and patient handling and emergency medical equipment.

The Procter & Gamble Company, together with its subsidiaries, manufactures and sells various consumer products worldwide. Its product portfolio comprises beauty, grooming, health care, fabric care and home care, and baby care and family care, as well as snacks, coffee, and pet care products. The company offers cosmetics, deodorants, feminine care, fine fragrances, hair care, personal cleansing, and skin care products under Always, Head & Shoulders, Olay, Pantene, and Wella brands; oral care, personal health care, and pharmaceutical products with Actonel, Crest, and Oral-B brand names; and fabric care, air care, dish care, and surface care products under Ariel, Dawn, Downy, Gain, and Tide brands. It also provides diapers, baby wipes, bath tissue, facial tissue, and paper towels with Bounty, Charmin, and Pampers brand names.

E. I. du Pont de Nemours and Company (DuPont) operates as a science and technology company in various disciplines, including biotechnology, electronics, materials science, safety and security, and synthetic fibers. The company operates in six segments: Agriculture & Nutrition, Coatings & Color Technologies, Electronic & Communication Technologies, Performance Materials, Safety & Protection, and Pharmaceuticals.


The futures are currently down 8.20 so the time spent above the 50day moving average might be short lived. With the economic numbers coming out this week, especially the employment numbers Friday, the picture could get a little clearer on what direction the Federal Reserve might take with interest rates later this month. The market is addicted to the idea of a rate cut, so if a rate cut starts to seem less likely in the short term, it could cause some withdrawal symptoms and the market will have to detox some more from the easy money fix.

This chart shows the out-performance of the financial-less Nasdaq 100 Index. It is not just that the NDX does not suffer from lagging financial stocks, it also benefits from United States technology companies have global exposure to growing economies around the world. Cisco Systems and others have made comments about how strong demand is globally for their products. This will continue to grow and should benefit from a weaker dollar in the future.

U.S Dollar Index

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