By Robert W. Colby, Senior Analyst TraderPlanet.com

NASDAQ 100 Price Closes at New High.
Earnings reports and guidance may dominate the news and price action over the next few days.

Relative Strength again rose to new highs for the NASDAQ Composite,
the Technology stock sector, and Growth stocks relative to Value stocks.

Foreign stock indices’ outperformed again.

Crude Oil Futures closed lower for the third consecutive session.

U.S. dollar gave back most of Monday’s gain.

On Tuesday, major stock price indices gaped higher on the open but surrendered all early gains as the morning wore on. A sharp rise after 3:20 p.m. propelled prices above their opening highs. The market closed at its best levels of the day.

Breadth ended 36% net Bullish, with more Advancing stocks than Declining stocks on the NYSE. The Cumulative Daily Advance-Decline line for the NASDAQ moved upward after breaking down to a new low on 10/19/07.

Up-Down Volume finished the day 37% net Bullish, with greater Up Volume than Down Volume on the NYSE.

Total volume eased a bit lower on the NYSE but rose significantly on the NASDAQ, reflecting enthusiasm for a few of the high tech growth stocks on the NASDAQ.

New Highs-New Lows ratios ended 12% net Bearish.

The U.S. stock market recently retraced 43.2% (intraday) of its August-October gain. That magnitude is entirely typical and normal for a minor correction. The market does not move in a straight line, and downside corrections or shakeouts are to be expected in any uptrend. The long-term Primary Tide Trend remains Bullish, according to the Dow Theory.

Uncertain earnings reports and troublesome seasonal tendencies are clearly of concern to many traders. 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.) Earnings reports and guidance may dominate the news and price action over the next few days.

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

10.44% , AMZN , Amazoncom Inc
8.96% , WAT , WATERS
9.83% , NYT , NY TIMES STK A
1.87% , MTK , Technology MS sT, MTK
2.24% , IAH , Internet Architecture H, IAH
9.83% , RIMM , RESEARCH IN MOTION LTD
9.89% , APOL , APOLLO GROUP
2.24% , PXQ , Networking, PXQ
7.39% , TROW , T ROWE PRICE GP
1.43% , JKH , MidCap Growth iS M, JKH
4.51% , EFX , EQUIFAX
1.38% , IGV , Software, IGV
5.29% , TER , TERADYNE
6.29% , PLL , PALL
2.82% , AMGN , AMGEN
1.08% , EFV , Value EAFE MSCI, EFV
3.14% , FLEX , Flextronics International Ltd
0.92% , IJK , Growth MidCap 400 B, IJK
2.71% , TMO , THERMO ELECTRON
2.28% , CR , CRANE
6.54% , AVY , AVERY DENNISON
4.41% , EZA , South Africa Index, EZA
1.16% , VBK , Growth SmallCap VIPERs, VBK
1.08% , IWZ , Growth LargeCap Russell 3000, IWZ
1.98% , HUM , HUMANA
3.16% , TLAB , TELLABS
6.55% , NTAP , NETWK APPLIANCE
3.33% , PKI , PERKINELMER
0.76% , BDH , Broadband H, BDH
4.44% , TRB , TRIBUNE
0.46% , VIG , Dividend Appreciation Vipers, VIG
2.01% , RSH , RADIOSHACK
4.27% , BNI , BURLINGTON NORTH
2.28% , DGX , QUEST DIAG
1.39% , PBW , WilderHill Clean Energy PS, PBW
4.81% , VRSN , VeriSign Inc
2.24% , PBG , PEPSI BOTTLING
1.55% , PBE , Biotech & Genome, PBE
0.91% , TMW , Wilshire 5000 ST TM, TMW
1.32% , IXJ , Healthcare Global, IXJ
2.65% , YHOO , YAHOO
2.39% , PHO , Water Resources, PHO
3.09% , MAT , MATTEL
5.25% , BEN , FRANKLIN RSC
1.68% , EWK , Belgium Index, EWK
1.16% , PSJ , Software, PSJ
1.63% , EWU , United Kingdom Index, EWU
1.44% , NYC , LargeCap Blend NYSE Composite iS, NYC
2.54% , NSC , NORFOLK SOUTHERN
0.80% , ITF , Japan LargeCap Blend TOPIX 150, ITF

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

-24.07% , LVLT , LEVEL 3 COMMUNICATIONS
-17.83% , UIS , UNISYS
-11.74% , COH , COACH
-7.18% , LXK , LEXMARK INTL STK A
-3.87% , BEAS , BEA Systems Inc
-8.29% , TXN , TEXAS INSTRUMENT
-4.83% , WHR , WHIRLPOOL
-6.48% , PTV , PACTIV
-3.93% , TIF , TIFFANY
-3.65% , TNB , THOMAS & BETTS
-3.82% , ABK , AMBAC FINL GRP
-1.45% , PEJ , Leisure & Entertainment, PEJ
-2.92% , WMT , WAL MART STORES
-2.72% , IACI , IAC/INTERACTIVCORP
-0.69% , DBC , Commodity Tracking, DBC
-1.58% , SMH , Semiconductor H, SMH
-2.74% , KG , KING PHARM
-1.15% , ERTS , ELECTRONIC ARTS
-1.73% , CZN , CITIZENS COMMS STK B
-1.39% , KSS , KOHLS
-3.68% , VFC , VF
-1.96% , OMC , OMNICOM
-2.74% , LPX , LOUISIANA PAC
-0.72% , NSM , NATL SEMICONDUCT
-1.19% , ADI , ANALOG DEVICES
-1.76% , LIZ , LIZ CLAIRBORNE
-2.00% , ALL , ALLSTATE
-1.28% , BMY , BRISTOL MYERS
-1.78% , APC , ANADARKO PETRO
-1.22% , MHP , MCGRAW HILL
-0.59% , LQD , Bond, Corp, LQD
-1.72% , ROH , ROHM & HAAS
-2.34% , CHRW.O , CH Robinson Worldwide Inc, CHRWD
-4.02% , CFC , COUNTRYWIDE FNCL
-2.05% , STJ , ST JUDE MEDICAL
-0.62% , HCR , MANOR CARE
-1.93% , SPLS , STAPLES
-2.81% , ROST , Ross Stores Inc
-0.71% , BLL , BALL
-0.80% , LBTYA , Liberty Global Inc. (LBTYA)
-1.47% , BIIB , BIOGEN IDEC
-1.69% , SAF , SAFECO
-1.12% , DTE , DTE ENERGY
-0.59% , CAG , CONAGRA FOODS
-0.60% , KLAC , KLA TENCOR
-0.48% , XL , XL CAPITAL STK A
-1.07% , NI , NISOURCE
-1.37% , ODP , OFFICE DEPOT
-0.85% , JNY , JONES APPAREL
-0.68% , CNP , CENTERPNT ENERGY

Sectors: among the 9 major U.S. sectors, all 9 rose.

Major Sectors Ranked for the Day
% Price Change, Sector

1.59% Materials
1.43% Energy
1.16% Health Care
1.10% Technology
0.85% Financial
0.67% Industrial
0.47% Consumer Discretionary
0.32% Consumer Staples
0.05% Utilities

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

Energy (XLE) Bullish, Overweight. XLE made an all-time closing price high on 10/16/07, and XLE made an all-time high in relative strength 10/18/07. XLE has been strong compared to the S&P since 3/12/03.

Technology (XLK) Bullish, Overweight. XLK made a new 6-year price high on 10/11/07, and relative strength made a new 2-year high on 10/23/07. Long term, XLK has been relatively strong compared to the S&P since its low on 7/24/06.

Materials (XLB) Bullish, Overweight. Price made a new high on 10/11/07. Relative strength made a new 3-month high on 10/19/07. 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.

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

Consumer Staples (XLP) Neutral, Market Weight. This defensive sector’s relative strength has improved since its low on 10/9/07.

Utilities (XLU) Neutral, Market Weight. This defensive sector’s relative strength has improved modestly since its 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 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 and is back down to that low now.

Financial (XLF) Bearish, Underweight. on 10/19/07, the XLF/SPY relative strength ratio fell to its lowest level in more than 6 years. The long-term trend of relative strength has been trending down since 2/20/07.

Foreign stock indices’ outperformed again. The EFA (the EAFE, international developed country stock markets, ex the U.S. and Canada) made a new price high on 10/11/07 and a new relative strength high on 10/19/07. EFA 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 has been Relatively Strong, compared to most other indices. Price made a new 6-year high on 10/11/07. Relative strength made a new 17-month high on 10/23/07. Longer term, NASDAQ has outperformed since 8/8/06.

Growth Stock/Value Stock Relative Strength ratio rose to a another new 20-month high. Growth price made a new 6-year high on 10/11/07. Growth stocks outperformed Value stocks since 8/8/06. The main trend for Growth is confirmed Bullish.

Small Caps substantially underperformed Large Caps since 4/19/06, and the main long-term trend is Bearish for Small Caps.

November Crude Oil Futures fell for the third consecutive session. On 10/19/07, price hit a record high at $90.07 a barrel intraday. Support appears at previous resistance at 84.10 and at 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. Some profit taking seems normal after oil’s sharp price run-up since 8/22/07, but these major trends remain Bullish.

The Energy stock sector outperformed the USO and 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 appears to be consolidating after its 2-month price run-up. Gold set a new 28-year high on 10/19/07, and Relative Strength versus the S&P 500 confirmed. The Gold Trust ETF (NYSE: GLD) also confirmed the uptrend on 10/19/07. Some profit taking seems normal after gold’s sharp price run-up since 8/16/07, but these major trends remain Bullish.

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

The Gold Miners ETF (GDX) has underperformed the metal steadily since 10/12/07. Profit taking seems normal after the previous price run-up.

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 Bonds eased slightly lower as the focus shifted away from financial risks. The short-term trend still appears Bullish. 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 gave back most of the previous day’s gain. The main trend has been confirmed Bearish—again and again. Longer term, the dollar fell 16% over the past 23 months, and the main tidal force remains very Bearish.

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

4.02% Brazil
3.67% Sweden
3.13% Gold Mining
3.08% Oil Services
2.83% Airlines
2.66% Australia
2.60% Taiwan
2.53% Internet
2.51% Hong Kong
2.23% Austria
2.22% Mexico
2.21% Nasdaq 100
2.16% South Korea
2.03% DOT
2.02% Singapore
2.01% Dow Transports
1.95% Hardware
1.88% Hospitals
1.75% Netherlands
1.68% Belgium
1.66% Computer Tech
1.65% Nasdaq Composite
1.63% Spain
1.63% United Kingdom
1.63% Australian Dollar
1.59% Materials
1.58% Canadian Dollar
1.56% Biotechs
1.54% Germany
1.52% Chemicals
1.50% France
1.43% Energy
1.39% Drugs
1.32% Network
1.30% Italy
1.28% Health Care Products
1.28% Broker Dealers
1.24% Switzerland
1.22% Health Care
1.16% Health Care
1.11% NYSE Composite
1.11% REITs
1.10% Technology
1.04% Russell 2000
1.04% Commodity Related
1.01% Paper
1.00% Dow Composite
0.99% British Pound
0.97% S&P Small Caps
0.91% Wilshire 5000
0.90% AMEX Composite
0.90% Russell 3000
0.89% S&P 100
0.88% S&P 500
0.88% Russell 1000
0.87% Disk Drives
0.85% Financial
0.81% Dow Industrial
0.79% Value Line
0.69% S&P Mid Caps
0.68% Euro Index
0.67% Industrial
0.66% Malaysia
0.58% Banks
0.55% Oil
0.47% Consumer Discretionary
0.43% Retailers
0.39% Canada
0.32% Consumer Staples
0.29% Japan
0.29% Swiss Franc
0.08% Insurance
0.05% Utilities
0.02% Dow Utilities
-0.19% 30Y T-Bond
-0.23% Natural Gas
-0.25% Semiconductors
-0.47% Japanese Yen
-0.60% US Dollar Index