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Aug 21, 2006 - Issue #020
Caution! An impressive week, to be sure, but curb your enthusiasm.
If this market is, indeed, destined to move higher, I would be more convinced if it
would first do a better job of building a base from which to launch.
As it is, all I see is a sharp move up to where resistance, probably, lies in wait.
The "surprise" would be if this market moves up to new highs without encountering any
Dow score card for the week: 27 up (+20), 3 down (-20).
Trends (weekly): This is the subjective part.
Rising 13 (+2):
GM, +*HON, +*HPQ, JNJ, JPM, KO, +*MCD, MO, PFE, PG, T, VZ, XOM.
Consolidating 6 (+2):
+*AIG, +*C, DIS, +*GE, +*INTC, -*MRK.
Declining 11 (-4):
AA, AXP, BA, -*CAT, DD, HD, IBM, MMM, MSFT, UTX, WMT.
* denotes change of category.
+/- denotes change of direction.
As mentioned last week, it was only a matter of time before INTC moved up in class (2nd
best component price improvement, +5.69%, in the Dow). It's still not too late, in my
opinion, to commit to new purchase.
In the S&P 500 index: BSX is looking very interesting. Accumulation by strong hands
taking place? Mostly negative news items (how many times have we seen that before an
impressive up move?).
Comments? Ideas? Feedback? Let me have it, right between the eyes! I'd love to hear from you. Just reply to this zine and tell me what you think!