Chipmakers, airlines lift NASDAQ Composite (.IXIC)

Chipmakers, airlines lift NASDAQ Composite (.IXIC)

Chipmakers, airlines lift NASDAQ Composite (.IXIC)

A rally in shares of chip makers and airlines lifted the Nasdaq on Thursday, while the Dow Jones industrials and the S&P 500 wavered due to concerns about the Sino-U.S. trade dispute and the longest U.S. government shutdown ever.

U.S. Commerce Secretary Wilbur Ross said the United States and China were a long way from resolving their trade dispute,but saw a fair chance of a deal. The two countries are trying to meet a March 1 deadline to resolve the dispute, which has roiled market for most of the past year.

Despite the news, chip stocks powered higher on the back ofupbeat quarterly results. The Philadelphia Semiconductor Index .SOX , which had underperformed 10 of the 11 S&P sectors so farthis year, jumped 5.78 percent.

Xilinx Inc shares XLNX.O surged 17.5 percent and Lam Research Corp LRCX.O jumped 14.6 percent after reporting better-than-expected

Apple supplier Texas Instruments IncTXN.O rose 6.3percent after what analysts called better-than-feared results.The company however warned of weak demand in China, a key market for many chip makers.

“Earnings so far have been a positive for markets,” saidChris Larkin, senior vice president of trading at E-TradeFinancial in New Jersey.

“But trade talks and the government shutdown are things thatcertainly impact markets. People react but no one actually knowswhat is going on and that in turn increases the volatility.”

Adding to the cautious tone, European Central Bank PresidentMario Draghi acknowledged that economic growth in the euro zonewas likely to be weaker than what was earlier expected due tothe fallout from factors, including China’s slowdown. urn:newsml:reuters.com:*:nL8N1ZO1J3

At 12:46 p.m. ET the Dow Jones Industrial Average .DJI was down 66.84 points, or 0.27 percent, at 24,508.78, the S&P 500 .SPX was down 2.42 points, or 0.09 percent, at 2,636.28 and the Nasdaq Composite .IXIC was up 26.23 points, or 0.37 percent, at 7,052.00.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 7,447.49.

The projected lower bound is: 6,681.14.

The projected closing price is: 7,064.31.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 39.4973. This is not an overbought or oversold reading. The last signal was a sell 2 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 56.51. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 19 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 72. This is not a topping or bottoming area. The last signal was a sell 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 15 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 47.695 at 7,073.462. Volume was 9% below average (neutral) and Bollinger Bands were 12% wider than normal.

Open High Low Close Volume___
7,042.2527,078.9637,029.9517,073.462 574,837,824

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 7,028.33 6,953.22 7,452.32
Volatility: 19 36 25
Volume: 543,587,264 622,228,928 556,799,360

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

NASDAQ COMPOSITE is currently 5.1% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into .IXIC (mildly bullish). Our trend forecasting oscillators are currently bullish on .IXIC and have had this outlook for the last 10 periods.

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