By Robert W. Colby, Senior Analyst TraderPlanet.com

Energy and Technology stock sectors made new price highs.

The NASDAQ Composite and Growth stock price indices both made new 6-year highs.

Gold Miners stock price indices made new highs.

A large rise in Investment Advisor Bullishness may be a red flag to Contrarians.

Seasonal tendencies are still a concern in days ahead.

On Wednesday, major stock price indices gapped down on the open and fell further to a low at about 1:30 p.m. There were disappointing earnings reports from Alcoa, Chevron, Valero, PetSmart, and International Paper. The indices made back about 2/3 of their loss by the close, thereby demonstrating Bullish resilience.

Breadth was 5% net Bearish, with fewer Advancing stocks than Declining stocks on the NYSE. In addition, the Cumulative Daily Advance-Decline line for the NYSE is far from its July high, lagging the price indices. The A-D Line lag is much more pronounced (I could say “dramatic”) for the NASDAQ.

Up Volume was 8% net Bearish, with less Up Volume than Down Volume on the NYSE. Total volume rose on both the NYSE and the NASDAQ, confirming the downward direction.

New Highs-New Lows ratios were 54% net Bullish.

Short-term momentum indicators turned downward and are still lagging relative to the price indices.

The market does not move in a straight line, and temporary minor sinking spells are to be expected in any uptrend. The stock market has absorbed 1- to 4-day bouts of normal profit taking with minimal damage and with resilience since the low on 8/16/07. That indicates underlying demand and a Bullish intermediate-term trend for stocks. Finally, the long-term Primary Tide Trend remains Bullish, according to the Dow Theory.

Seasonal tendencies are a concern in days ahead. October has been a losing month on average, based on 101 years of month-end closing prices for the Dow-Jones Industrial Average, from 1900 through 2000. See my book, pages 403-410. October has suffered some very notable downside shakeouts. So, we definitely do not want to get complacent. Be alert and flexible.

Spotlight on event stocks: Here is a stock screen I designed to pick out potential “event” stocks, both Bullish and Bearish. Sometimes, stocks with large changes in price and volume are revealed to be deal stocks, sooner or later, or are the subject of some other extraordinary events, positive or negative.

Bullish Stocks: Rising Price and Rising Volume
% Price Change, Symbol, Name

9.19% , COST , COSTCO WHOLESAL
6.67% , LXK , LEXMARK INTL STK A
8.16% , VC , VISTEON
4.97% , MLNM , Millennium Pharmaceuticals Inc
3.19% , THC , TENET HEALTHCARE
0.49% , IAH , Internet Architecture H, IAH
3.57% , UIS , UNISYS
0.47% , PHW , Hardware & Electronics, PHW
4.87% , BHI , BAKER HUGHES
3.65% , CIEN.O , CIENA
2.65% , EDS , ELECTR DATA
1.17% , PBE , Biotech & Genome, PBE
3.18% , OIH , Oil Services H, OIH
3.84% , FCX , FREEPRT MCMORAN STK B
2.85% , VLO , VALERO ENERGY
1.67% , AMD , ADV MICRO DEV
3.47% , SLB , SCHLUMBERGER
3.37% , CC , CIRCUIT CITY STR
2.64% , BJS , BJ SERVICES
1.84% , ZMH , ZIMMER HLDGS
2.06% , ABC , AMERISOURCEBERGN
3.48% , EMC , EMC
2.94% , WYNN , Wynn Resorts L
0.48% , XBI , Biotech SPDR, XBI
2.52% , XTO , XTO ENERGY INC
0.35% , RPG , Growth S&P 500, RPG
1.73% , UNH , UNITEDHEALTH GRP
1.21% , MIL , MILLIPORE
1.43% , DISH , EchoStar Communications Corporation
2.42% , FDO , FAMILY DLR STRS
0.14% , PTE , Telecommunications & Wireless, PTE
1.15% , MCK , MCKESSON CORP
2.31% , NE , NOBLE
1.64% , NOVL , NOVELL
0.70% , IXC , Energy Global, IXC
2.11% , GILD , Gilead Sciences Inc
1.14% , RDC , ROWAN COMPANIES
0.38% , MTK , Technology MS sT, MTK
2.25% , NTAP , NETWK APPLIANCE
1.42% , VDE , Energy VIPERs, VDE
0.42% , SH , Short 100% S&P 500, SH
0.59% , WEN , WENDYS INTL
2.23% , NOV , NATIONAL OILWELL VARC0
2.22% , HAS , HASBRO
1.45% , MRVL , MARVELL TECHNOLOGY
1.55% , MHS , MEDCO HEALTH
2.31% , LRCX , LAM RESEARCH CORP
0.80% , CVG , CONVERGYS
1.17% , GENZ , GENZYME GEN
1.36% , IBB , Biotechnology, IBB

Bearish Stocks: Falling Price and Rising Volume
% Price Change, Symbol, Name

-6.45% , EFX , EQUIFAX
-4.08% , PETM , PETsMART Inc
-2.73% , BA , BOEING
-5.25% , Q , QWEST COMMUNICAT
-4.27% , BLL , BALL
-4.25% , XLNX , XILINX
-3.76% , ATI , ALLEGHENY TECH
-3.11% , NVLS , NOVELLUS SYS
-4.09% , WFMI , Whole Foods Market Inc
-4.40% , LPX , LOUISIANA PAC
-3.11% , AVY , AVERY DENNISON
-4.28% , TER , TERADYNE
-1.86% , IFF , INTL FLAV & FRAG
-5.04% , GNW , GENWORTH FINANCIAL (NYSE:GNW)
-1.66% , MYL , MYLAN LABS
-1.86% , DDM , Ultra Dow30 Double, DDM
-2.09% , XRX , XEROX
-2.49% , AA , ALCOA
-2.34% , CPWR , COMPUWARE
-2.40% , COL , ROCKWELL COLLINS
-2.23% , SLE , SARA LEE
-1.65% , ZION , ZIONS
-2.27% , AMAT , APPLIED MATERIAL
-0.88% , CAG , CONAGRA FOODS
-2.25% , AIG , AMER INTL GROUP
-2.16% , PKI , PERKINELMER
-1.79% , ROH , ROHM & HAAS
-0.83% , MON , MONSANTO
-2.00% , WYE , WYETH
-0.39% , PFM , Dividend Achievers PS, PFM
-0.39% , VBR , Value SmallCap VIPERS, VBR
-2.57% , FITB , FIFTH THIRD BANC
-1.06% , CB , CHUBB
-0.90% , ALTR , ALTERA
-1.18% , JBL , JABIL CIRCUIT
-2.69% , MTG , MGIC INVESTMENT
-0.63% , FDL , Dividend Leaders, FDL
-2.53% , TNB , THOMAS & BETTS
-2.37% , IP , INTL PAPER
-0.41% , PHJ , Dividend Growth PS, PHJ
-1.56% , PNC , PNC FINL SVC
-3.53% , LIZ , LIZ CLAIRBORNE
-0.63% , VTV , Value VIPERs, VTV
-3.52% , CAR , Avis Budget Group, Inc. (CAR)
-2.39% , CFC , COUNTRYWIDE FNCL
-1.39% , JPM , J P MORGAN CHASE
-1.25% , WHR , WHIRLPOOL
-1.01% , MOLX , MOLEX
-1.43% , SCHW.O , CHARLES SCHWAB
-1.13% , ABT , ABBOTT LABS

Sectors: among the 9 major U.S. sectors, 1 rose and 8 fell.
Major Sectors Ranked for the Day
% Price Change, Sector

1.29% Energy
0.43% Consumer Staples
0.33% Technology
0.17% Health Care
-0.42% Consumer Discretionary
-0.56% Financial
-0.60% Materials
-0.75% Utilities
-1.10% Industrial

Looking beyond the daily fluctuation to the major trends (listed in order of relative strength):

Energy (XLE) Bullish, Overweight. XLE made an all-time closing price high on 10/10/07. Relative strength made a new all-time high on 9/21/07. XLE has been strong compared to the S&P since 3/12/03.

Materials (XLB) Bullish, Overweight. Price made a new high on 10/9/07. Relative strength made a new 10-week high on 10/1/07. The relative strength trend strongly outperformed since the price shakeout low on 8/16/07, and its long term trend has been Bullish since 9/27/2000.

Technology (XLK) Bullish, Overweight. XLK made a new 6-year price high on 10/10/07, and relative strength made a new 2-year high on 9/26/07. Long term, XLK has been relatively strong compared to the S&P since its low on 7/24/06.

Industrial (XLI) Bullish, Overweight. Industrial stock sector price set an all-time price high on 10/9/07. Longer term, XLI has been relatively strong compared to the S&P since 8/9/06.

Utilities (XLU) Bearish, Underweight. This defensive sector’s relative strength made a new 8-week low on 9/28/07.

Health Care (XLV) Bearish, Underweight. Relative strength has been trending down since 10/9/02, and it made a new 5-year low on 7/19/07, thereby confirming a major downtrend.

Consumer Staples (XLP) Bearish, Underweight. This defensive sector’s relative strength broke down to a new 11-week low on 10/9/07.

Financial (XLF) Bearish, Underweight. The long-term trend of relative strength has been trending down since 2/20/07.

Consumer Discretionary (XLY) Bearish, Underweight. Price hit a new 10-month low on 8/16/07. Relative strength made another new 6-year low on 9/27/07.

Foreign stock indices eased slightly lower a day after making a new closing price high. The EFA (the EAFE, international developed country stock markets, ex the U.S. and Canada) has substantially outperformed long term, since the Bull market started in 2002, and the secular trend is still Bullish. My Top 10 ETF Relative Strength Ranks are all Foreign.

NASDAQ Composite index price made a new 6-year high on 10/10/07. Relative strength made a new 17-month high on 10/8/07. Longer term, NASDAQ has outperformed for more than a year, since 8/8/06.

Growth stocks made a new 6-year high on 10/10/07 and outperformed Value stocks since 8/8/06. The main trend is confirmed Bullish.

Small Caps rose since 9/28/07 but substantially underperformed Large Caps since 4/19/06. The main long-term trend is Bearish.

Crude Oil futures gained some upside momentum. Oil appears to be holding previous minor lows in the 78.25-78.35 zone. Note that the U.S. OIL FUND ETF (AMEX: USO) is not a pure play on Crude Oil. The longer-term trends for both remain Bullish.

The Energy stock sector underperformed the USO but outperformed the SPY. Longer term, since 3/12/03, the stocks in the Energy Select Sector SPDR ETF (XLE) have significantly outperformed crude oil as a commodity, as well as the S&P 500. So, the Relative Strength major trend is Bullish for the energy stocks.

Gold rose moderately. Gold made a new 28-year high on 10/1/07, and the Gold Trust ETF (NYSE: GLD) confirmed. These major trends remain Bullish.

Silver’s main trend is relatively Bearish. Compared to Gold, the iShares Silver Trust (AMEX: SLV) has been weak since 12/7/06.

The Gold Miners ETF (GDX) broke out above the top of its trading range in more active trading. GDX penetrated resistance and made a new high, and that looks technically significant. Gold Mining stocks outperformed both Gold and the S&P 500.

Inflation expectations appear choppy and uncertain, especially since 6/22/07. This is based on the behavior of the ratio of two ETFs, TIP/IEF.

U.S. Treasury Bond prices stabilized, but the short-term trend is still Bearish. Long-term, it seems possible that the iShares Lehman 20+ Year U.S. Treasury Bond ETF (AMEX: TLT) ended a normal oversold bounce in a Bearish trend on 9/10/07. Bonds remain reactive to news about the credit crisis: the worse the credit crisis, the higher the Bond prices; the better the credit crisis, the lower the Bond prices.

U.S. dollar fell again. The short-term trend seems uncertain at best. Longer term, the dollar fell 16% over the past 23 months and its main trend remains very Bearish.

Daily Rankings of Major Global Markets, Ranked from Strongest to Weakest of the Day:

2.99% Oil Services
1.74% Gold Mining
1.29% Energy
1.01% Hardware
1.00% Biotechs
0.98% Malaysia
0.76% Natural Gas
0.65% DOT
0.56% Commodity Related
0.54% Canada
0.52% Internet
0.51% Oil
0.49% Computer Tech
0.47% British Pound
0.46% Netherlands
0.43% Consumer Staples
0.43% Belgium
0.39% Hospitals
0.38% Euro Index
0.37% AMEX Composite
0.33% Technology
0.32% Mexico
0.31% South Korea
0.30% Network
0.27% Nasdaq Composite
0.27% Nasdaq 100
0.24% Sweden
0.19% Swiss Franc
0.17% Health Care
0.15% Disk Drives
0.14% Retailers
0.13% Canadian Dollar
0.06% 30Y T-Bond
0.00% Switzerland
-0.04% Health Care
-0.05% Wilshire 5000
-0.06% Russell 2000
-0.07% S&P Mid Caps
-0.10% Austria
-0.11% Taiwan
-0.11% Japanese Yen
-0.11% Australian Dollar
-0.12% Russell 3000
-0.12% Australia
-0.13% Russell 1000
-0.13% Brazil
-0.15% NYSE Composite
-0.15% United Kingdom
-0.17% S&P 500
-0.17% US Dollar Index
-0.19% Value Line
-0.20% S&P Small Caps
-0.20% REITs
-0.21% Japan
-0.24% S&P 100
-0.24% Spain
-0.25% Broker Dealers
-0.30% Insurance
-0.31% Germany
-0.35% Health Care Products
-0.38% France
-0.42% Consumer Discretionary
-0.44% Drugs
-0.50% Airlines
-0.50% Chemicals
-0.50% Hong Kong
-0.56% Financial
-0.58% Semiconductors
-0.60% Materials
-0.61% Dow Industrial
-0.75% Utilities
-0.81% Dow Composite
-0.81% Italy
-0.92% Dow Utilities
-1.07% Dow Transports
-1.10% Industrial
-1.12% Banks
-1.89% Singapore
-2.43% Paper