Paul Shread

IBM launched a broad push into commercial Grid computing Monday with 10 initiatives targeting aerospace, automotive, financial markets, government and life sciences. Big Blue, which gave Grid computing a big boost with its entry into the space in August 2001, said it hopes its latest initiative will “drive the benefits of Grid computing beyond its […]

The Dow and S&P (first two charts below) had clear breaks of head and shoulders tops today. However, both indexes also ended the day at the 50% retracement level (8121 and 861) off the October lows. Combined with the lower NYSE volume on today’s breakdown, the indexes could bounce back to test those broken supports, […]

Stocks fell sharply Friday on growing fears of war between the U.S and Iraq. Among the highlights: the BBC reported that Iraq may be preparing for chemical and biological warfare; Japan and the U.S. reportedly told their citizens to leave Iraq; and speculation that the U.S. may go to war without UN backing. A key […]

Stocks overcame weak earnings from AT&T and BellSouth to end a five-day losing streak, propelled higher by better than expected earnings from technology companies. The Nasdaq gained 28 to 1388, the S&P 500 rose 8 to 887, and the Dow added 50 to 8369. Volume rose to 1.7 billion shares on the NYSE, and 1.57 […]

We’re not sure how much more upside this rally has, but there’s a chance it could top out here. Looking at the Nasdaq intraday chart (see first chart below), the index may have completed an ABC correction today: an opening 27-point bounce, a pullback and then a 28-point bounce into the highs of the day. […]

Another day of disappointing earnings sent stocks to their fifth straight loss on Wednesday and put the Dow and S&P 500 in the red for the year. The Nasdaq slipped 4 to 1359, the S&P 500 lost 9 to 878, and the Dow fell 124 to 8318. Volume surged to 1.57 billion shares on the […]

The Dow and S&P (first two charts below) formed the bearish “three black crows today,” which the SOX, the semiconductor index (third chart below), formed two days ago. A bounce often follows the pattern, and stochastics are certainly low enough for a bounce, but upside could be capped around the middle of the pattern, at […]

Stocks fell again Tuesday after another day of lukewarm earnings forecasts. The Nasdaq fell 11 to 1364, the S&P 500 lost 14 to 887, and the Dow dropped 143 to 8442. Volume declined to 1.31 billion shares on the NYSE, and 1.38 billion on the Nasdaq. Decliners led 23-10 on the NYSE, and 20-12 on […]

The market is oversold enough for a bounce, with stochastics on all indexes in the single digits (see charts below). However, there was one very bearish development today – the equity-only put-call ratio closed at a very low .42, below the .45 danger zone. That degree of bullish sentiment on a sharp down day is […]

The SOX, the semiconductor index (first chart below), formed the bearish “three black crows” today and could also be forming a head and shoulders top. The index could bounce as high as 320 before turning back down, but it appears headed for a bout with the critical 285 level. Below 285, new lows would become […]

Subpar earnings reports and weaker than expected economic news combined for a one-two punch that sent stocks to the mat on Friday. The Nasdaq plunged 47 to 1376, the S&P 500 lost 12 to 901, and the Dow dropped 111 to 8586. Volume declined to 1.35 billion shares on the NYSE, but rose to 1.63 […]

Another down day tomorrow could create the bearish “three black crows” pattern on the Nasdaq and SOX (first two charts below), but it’s also an options expiration day, so anything could happen. At .70, the equity-only put-call ratio is close to the supportive .80 level, but the VIX, the options volatility index (third chart), remains […]