January 2006, Volume 3 Issue 1 Know It - Profit!
"Disk Drive Index Revs-Up Profits"
Happy New Year!
The Airline sector and the disk drive index ring-in the new year with strong trends.
Which is your best play? We'll find out.
But first, see how the broad market indices stacked-up against each other as we put 2005 behind us...
Good news! All the indices finished the year in positive territory.
The Russell 2000 (^RUT) was able to finish the year with a modest gain of 9.79 percent.
The Nasdaq Composite (^IXIC) and the Standard & Poor's 500 (^GSPC) ended up 5.59 and 5.24 percent, respectively.
The Dow Jones Industrials (^DJI) managed to stay in the black with a 1.07 percent gain.
Find out how the indices compared over the year in Market Metrics...Click Here For Broad Market Analysis
The AMEX Airline Index (^XAL) has taken off... up 44 percent since September 2005!
The AMEX Disk Drive Index (^DDX) is up 248 percent since its low in October 2002. Now, it's poised to break to a fresh two-year high.
For more leaders and laggards, go to Market Metrics...Click Here For More Stock Sectors
SanDisk Corp. (SNDK) is up over 252 percent from its low in July 2004...
View Current Chart of SNDK
is moving up in an intermediate-term fifth Elliott wave
on the weekly chart.
The Fibonacci price extension from the third Elliott wave is forecasted to reach the $83 to $94 price range.
The trend continues to be strong with the relative strength index moving up through 70.
You may have noticed some sectors will lead for two or three months at a time... while, others will go in and out of favor within the span of a few weeks.
When evaluating sectors and stocks, you must apply your analysis to different time periods in order to get a more accurate picture of likely future price action.
Ideally, each time frame should be in agreement before you place your order.
Until next time...
Russ Schmidt, President
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