- Analytical Commentary -

October 14, 2009 (FinancialWire) (By Dr. Joe Duarte) - Traders are torn between rejoicing for Intel (NASDAQ: INTC) and its blowout quarter, and the uncertainty of the recent developments in Washington with the health care “reform” bill.

Yesterday may be remembered as a pivotal day for the markets and the political process. It was the day in which Maine Republican Olympia Snowe joined the Democrats in a key committee vote on a crucial health care bill that could change the way Americans, their doctors, and their overall health care interact. It was also the day in which Intel blew away earnings and revenue expectations in a stellar earnings report released after the bell.

So where does it all lead? It may depend on what sector of the market you invest in. The initial reaction to Snowe’s defection was a dismal drop in HMO stocks, while Intel, after being halted, soared as high as 7% above its regular hours close in after hours trading.

That means that the stock market indexes, may not be as accurate a measure of what’s happening as individual stocks or sector ETFs. That’s why much of how you fare on Wednesday may depend on what you own.

As with anything, though, it’s important to have benchmarks. And for now, the S&P 500’s 1070 price area is the short-term barometer. A move below that support level, which was a former resistance area, would be a signal that the short term trend has become increasingly vulnerable. Otherwise, a move toward 1100 on the index may be around the corner.

What does it come down to? In markets like this, it’s all about your trading plan. If you’ve got precise entry and exit points already mapped out, your work will be easier. If you’re flying by the seat of your pants, good luck.

[Go to http://www.financialwire.net/?s=joe+duarte to see more commentaries by Dr. Joe Duarte.]

The FirstAlert(tm) “Money Index” is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ/AMEX 25 Most Actives and NYSE/NASDAQ/AMEX greatest Percentage Losers and Percentage Winners (weighted against pure monetary loss/gain) indicate the direction in which the mass of money is flowing, as well as the general focus of the market. Of the Most Actives, last session’s trading showed 14 advancers versus 11 decliners. Volume leaders were led by Citigroup Inc. (NYSE: C) trading 64,507,500 shares closing at $4.83 (up 1.3%), the SPDR Trust ETF (NYSE: SPY) trading 31,179,071 shares closing at $107.46 (down 0.2%) and Intel Corp. (NASDAQ: INTC) trading 30,600,472 shares closing at $20.49 (up 0.4%). Of last session’s Greatest Percentage Losers, stocks taking the greatest monetary losses were led by Hartford Financial Services Group Inc. (NYSE: HIG) trading on volume of 3,804,100 shares (losing $633.3 million), Buckle Inc. (NYSE: BKE) trading on volume of 490,000 shares (losing $174.0 million) and CIT Group, Inc. (NYSE: CIT) trading on volume of 12,567,100 shares (losing $47.0 million). Of last session’s Greatest Percentage Winners, stocks making the greatest monetary gains were led by Interactive Intelligence, Inc. (NASDAQ: ININ) trading on volume of 341,941 shares (gaining $60.2 million), Ocean Power Technologies, Inc. (NASDAQ: OPTT) trading on volume of 723,450 shares (gaining $24.4 million) and Empire Resorts Inc. (NASDAQ: NYNY) trading on volume of 141,097 shares (gaining $18.4 million). The complete chart for today’s FirstAlert(tm) Money Index Synopsis is posted at investrend.com (http://www.investrend.com/fa-index). Go to http://www.financialwire.net/?s=%22%27Money+Index%27+Synopsis for all the most recent FirstAlert(tm) “Money Index” Synopses.

The FirstAlert(tm) Economics Calendar lists Retail Sales for September (8:30 a.m.), Import Export Prices for September (8:30 a.m.), Business Inventories for August (1 p.m.), FOMC Minutes released (2 p.m.).

The FirstAlert(tm) Events Calendar showcases CHLN, CPBY, CAAS, CHBT Roth Capital Partners China Conference; QCOM, SY at Dow Jones Newswires VentureWire Showcase Conference; UEIC, RUBO at Imperial Capital Middle Market Consumer Summit.

FirstAlert(tm) Website of the Day: http://www.usajobs.gov

Quote of the Day: “An atheist is a guy who watches a Notre Dame-SMU football game and doesn’t care who wins.” Dwight David Eisenhower

Today is: Emergency Nurses Day.

Happy Birthday: William Penn, Dwight D. Eisenhower, Lillian Gish, E. E. Cummings, C. Everett Koop, Roger Moore, Ralph Lauren, Cliff Richard, Justin Hayward, Lori Petty, Floyd Landis.

Today in History: Because of the implementation of the Gregorian calendar this day did not exist in 1582 in Italy, Poland, Portugal and Spain. George Washington proclaimed in 1789 the first Thanksgiving Day. George Eastman patented paper-strip photographic film in 1884. The children’s book Winnie-the-Pooh, by A.A. Milne, was first published in 1926. Chuck Yeager flew a Bell X-1 faster than the speed of sound in 1947, the first man to do so in level flight. The first live telecast from a manned U.S. spacecraft took place in 1968 on board Apollo 7. Jim Hines of the USA became in 1968 the first man ever to break the ten second barrier in the 100 metres Olympic final at Mexico City with a time of 9.95 sec.

[FirstAlert(tm) was created by Gayle Essary, founder of Investrend Communications, Inc., parent of Investrend Information. The opinions expressed in FirstAlert(tm) do not necessarily reflect the opinions of Investrend.]

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