Afternoon Rally Lifts Stocks

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Millionaire Now! by Larry Nusbaum

This blog is based on the organizational principles found in my new book, "Millionaire Now! - A Financial Toolbox with Seven Steps to Wealth".

Afternoon Rally Lifts Stocks

Posted on 01/10/2007 20:58:52 | Link | Post Comment

It was encouraging to see the major averages overcome earlier weakness and close higher. Volume was lower behind Monday's bounce, which was not the ideal circumstance. Breadth was positive as advancers led decliners by 19-to-13 ratio on the NYSE while the mixed was about even on the Nasdaq exchange.

PICTURED BELOW: The S&P 500 Index gained on lighter volume that the prior session, not showing a convincing upturn, while still remaining above its a 50-day moving average (DMA) line.

Financial shares had a positive bias as the Broker/Dealer Index ($XBD +1.44%) and Bank Index ($BKX +0.21%) ended higher. The Healthcare ($HMO +0.44%) group also traded up. Meanwhile, the Retail Index ($RLX -0.00%) was unchanged, and there was not much action in the commodity related areas as the Gold & Silver ($XAU -0.13%), Oil Services ($OSX +0.05%), Integrated Oil ($XOI +0.17%) indexes closed with only minor changes.

Monday's biggest stock gainers and decliners

Pre-Market Stock Notes (JAN 9, 2007)

Dr. Brett's Bottom Line: "Flat going into Tuesday. We got expected weakness early in the session, but a number of sectors showed relative strength. When the laggard small caps picked up on strong buying, it was pretty clear that we put in a low for the day. A second burst of buying in the early afternoon (see above) took us to highs for the day before selling off a bit. This sets up a trading range defined by the highs of Friday and Monday and Monday's lows. My initial leaning will be to the sell side if buying dries up without sustaining a move above the range highs; when markets close near their day's highs on improved momentum, the odds of trading above those highs the next day are quite high. The question is whether we can sustain those highs, and I expect the usual indicators to provide decision support. "

7 Stocks You Need to Know for Tuesday

Short-term Trading tracks many of the weak sectors in the recent market.

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