By Robert W. Colby, Senior Analyst TraderPlanet.com

Short-term technical momentum oscillators turned down.
Falling volume suggests hesitation and fatigue.

Utilities and Consumer Staples sectors’ made new all-time price highs, suggesting investor preference for “defensive” stocks that are not very sensitive to economic downturns.

U.S. Treasury Bond prices broke down below 3-week lows, indicating an upside correction for long-term interest rates.

On Friday, major stock price indices opened higher on news of stronger than expected nonfarm payrolls, which suggested a resilient economy. The good feeling did not last long, however, as stock prices quickly turned choppy. Stock indices closed lower than the open and near the lows of the day.

Volume on both the NYSE and NASDAQ fell again, suggesting hesitation and fatigue after a steep 8-day market stock market rebound from an oversold condition.

Breadth ended 1% net Bullish, with more Advancing stocks than Declining stocks on the NYSE.

Up-Down Volume finished the day 3% net Bullish, with greater Up Volume than Down Volume on the NYSE.

New Highs-New Lows on the NYSE ended at 16% net Bullish.

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

9.26% , SNPS , Synopsys Inc
2.77% , BEAS , BEA Systems Inc
2.04% , BHH , Internet B2B H, BHH
0.37% , DSV , Value Small Cap DJ, DSV
3.92% , CTAS , CINTAS
5.04% , CTSH , Cognizant Technology Solutions
3.57% , CA , COMPUTER ASSOC
3.21% , PBW , WilderHill Clean Energy PS, PBW
1.27% , HSP , HOSPIRA
4.34% , NSM , NATL SEMICONDUCT
0.16% , UTH , Utilities H, UTH
1.26% , GWW , WW GRAINGER
0.42% , EWD , Sweden Index, EWD
2.67% , BCR , C R BARD
0.56% , JKG , MidCap Blend Core iS M, JKG
2.93% , AA , ALCOA
2.29% , LUV , SOUTHWEST AIRLS
2.14% , CBE , COOPER INDS STK A
0.76% , FAST , Fastenal Company
1.33% , TIN , TEMPLE INLAND
0.24% , VIS , Industrials VIPERs, VIS
1.76% , FDX , FEDEX
0.51% , TTH , Telecom H, TTH
3.06% , FCX , FREEPRT MCMORAN STK B
1.36% , TEVA , Teva Pharmaceutical Industries Limited
0.24% , PEJ , Leisure & Entertainment, PEJ
1.04% , CCU , CLEAR CHANNEL
0.40% , IYC , Consumer Cyclical DJ, IYC
2.58% , AVP , AVON
1.55% , OMC , OMNICOM
0.25% , VPU , Utilities VIPERs, VPU
1.89% , BRCM , BROADCOM STK A
1.32% , GT , GOODYEAR TIRE
0.66% , EWU , United Kingdom Index, EWU
0.19% , VXF , Extended Mkt VIPERs, VXF
2.94% , SHLD , SEARS HOLDINGS
1.86% , RHI , ROBERT HALF
1.38% , IYT , Transportation Av DJ, IYT
0.84% , XLY , Consumer Discretionary SPDR, XLY
0.88% , VAW , Materials VIPERs, VAW
0.26% , VCR , Consumer D. VIPERs, VCR
1.62% , MMM , 3M
2.29% , AAPL , APPLE COMPUTER
0.75% , XLI , Industrial SPDR, XLI
3.02% , X , US STEEL CORP
1.03% , ECL , ECOLAB
3.19% , KG , KING PHARM
0.35% , PFG , PRINCIPAL FINL
0.18% , EWL , Switzerland Index, EWL
1.08% , HSIC , Henry Schein Inc

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

-5.53% , AMGN , AMGEN
-4.71% , ISIL , INTERSIL CORP
-0.40% , PSI , Semiconductors, PSI
-2.13% , AMP , Ameriprise Financial Inc.
-4.32% , AXP , AMERICAN EXPRESS
-2.76% , WYE , WYETH
-0.57% , HHH , Internet H, HHH
-3.09% , HIG , HARTFORD FINL
-5.02% , COF , CAPITAL ONE FNCL
-2.99% , SGP , SCHERING PLOUGH
-1.59% , PRU , PRUDENTIAL FINL
-0.20% , ELV , Value Large Cap DJ, ELV
-0.20% , DSG , Growth Small Cap DJ, DSG
-0.83% , EWQ , France Index, EWQ
-0.28% , XLG , LargeCap Rydex Rus Top 50, XLG
-2.18% , LNC , LINCOLN NATL
-2.63% , DE , DEERE & CO
-0.31% , EWK , Belgium Index, EWK
-2.72% , SLM , SLM CORP
-1.11% , LAMR , Lamar Advertising Company
-0.42% , PEY , Dividend High Yield Equity PS, PEY
-2.38% , TROW , T ROWE PRICE GP
-1.98% , AMAT , APPLIED MATERIAL
-4.10% , FXI , China 25 iS, FXI
-0.86% , EWT , Taiwan Index, EWT
-0.26% , PKB , Building & Construction, PKB
-0.29% , PWY , Value SmallCap Dynamic PS, PWY
-0.46% , IXG , Financials Global LargeCap Value, IXG
-1.37% , ZION , ZIONS
-0.63% , SEE , SEALED AIR
-1.18% , DGX , QUEST DIAG
-0.86% , MNST , MONSTER WORLDWID
-1.85% , JNS , JANUS CAPITAL
-0.78% , BC , BRUNSWICK
-0.22% , SDY , Dividend SPDR, SDY
-1.30% , IYG , Financial Services DJ, IYG
-1.95% , MLNM , Millennium Pharmaceuticals Inc
-1.50% , EWY , South Korea Index, EWY
-0.91% , JNJ , JOHNSON&JOHNSON
-3.46% , LLL , L-3 COMMS HLDGS
-1.34% , IGT , INTL GAME TECH
-0.92% , GNTX , Gentex Corporation
-0.70% , IACI , IAC/INTERACTIVCORP
-0.47% , PHW , Hardware & Electronics, PHW
-0.49% , IYR , Real Estate US DJ, IYR
-0.97% , ERTS , ELECTRONIC ARTS
-0.95% , DISCA , Discovery Holding Co.
-4.20% , FRE , FREDDIE MAC
-0.93% , VFH , Financials VIPERs, VFH
-0.74% , BMC , BMC SOFTWARE

Sectors: among the 9 major U.S. sectors, 6 rose, and 3 fell.
Major Sectors Ranked for the Day
% Price Change, Sector

1.06% Consumer Staples
0.94% Materials
0.84% Consumer Discretionary
0.75% Industrial
0.52% Utilities
0.11% Technology
-0.05% Health Care
-0.29% Energy
-0.95% Financial

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

Energy (XLE) Bullish, Overweight. Relative Strength made a new all-time high on 11/8/07. XLE made an all-time closing price high on 10/16/07. XLE has been strong compared to the S&P since 3/12/03.

Utilities (XLU) Bullish, Overweight. This defensive sector’s Relative Strength made a new 6-year high on 12/5/07, and price made a new all-time high on 12/7/07.

Materials (XLB) Bullish, Overweight. The short-term turned down but the long-term trend is still up. Relative Strength made new all-time high on 11/8/07. Price made new all-time high on 10/29/07. The long-term Relative Strength trend has strongly outperformed since 9/27/2000.

Consumer Staples (XLP) Bullish, Overweight. This defensive sector’s price made a new all-time high on 12/7/07, and Relative Strength made a new 6-year high on 11/26/07.

Technology (XLK) Neutral, Market Weight. Relative Strength made a new 7-week low on 11/30/07. Still, long term, XLK has been relatively strong compared to the S&P since its low on 7/24/06.

Industrial (XLI) Neutral, Market Weight. Price and Relative Strength have been chopping sideways since 8/3/07. Longer-term trends appear Bullish.

Health Care (XLV) Neutral, Market Weight. XLV price moved up to a new 6-month high on 12/3/07. Relative Strength moved up to a new 13-month high on 11/27/07.

Consumer Discretionary (XLY) Bearish, Underweight. On 11/27/07, price made a new 14-month low. On 12/6/07, the XLY/SPY Relative Strength ratio fell to its lowest level in 6 years. Relative Strength has been trending down since 1/5/05.

Financial (XLF) Bearish, Underweight. XLF underperformed substantially on Tuesday and Wednesday. The oversold bounce in late November is history. XLF price hit another new 2.5-year low on 11/26/07, and the XLF/SPY Relative Strength ratio fell to its lowest level in more than 7 years on 11/26/07. Relative Strength has been trending down since 2/20/07.

Foreign stock indices have underperformed U.S. stock indices short term, since 11/27/07. The EFA (the EAFE, international developed country stock markets, ex the U.S. and Canada) made a new price high on 10/31/07 and a new relative strength high on 11/27/07. 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 have been nearly all Foreign for many months.

NASDAQ Composite and NASDAQ 100 underperformed the S&P since 11/7/07. But trends in different time frames conflict. Longer term, NASDAQ outperformed from 8/8/06 to 11/7/07, including a new 6-year Relative strength high on 11/7/07 and a new price high on 10/31/07.

Growth Stock/Value Stock Relative Strength ratio has been in a neutral trend since 11/7/07. The long-term, the main trend for the Growth/Value ratio (IWF/IWD) has been rising since 8/8/06.

Small Caps have recovered mildly since 12/4/07, when Relative Strength hit a new low. Small Caps substantially underperformed Large Caps since 4/19/06, and so the main long-term trend is Bearish for Small Caps.

January Crude Oil Futures fell moderately for an “Inside Day” consolidation. The short-term trend seems questionable. Watch to see if the 12/6/07 low at 85.82 holds. The next Potential Support levels might be at previous resistance at 84.10, and at previous minor lows in the 78.25-78.35 zone. The U.S. OIL FUND ETF (AMEX: USO) is not a pure play on Crude Oil, although it generally moves in the same direction.

The Energy stock sector outperformed the USO since 11/26/07. Previously, over the 6 months from 5/30/07 to 11/26/07, XLE lagged oil the commodity.

December Gold Futures fell moderately for an “Inside Day” consolidation.
Gold appears to have entered a correction since the top at 848.00 on 11/7/07.

Silver’s main trend is 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 Gold Futures since 10/31/07.

Inflation expectations recovered weakly after moving steadily down from 11/23/07 to 12/5/07. A new 3-month low on 12/05/07 suggests that a downside correction is underway, based on the behavior of the ratio of two ETFs, TIP/IEF.

U.S. Treasury Bond prices broke down below 3-week lows. A steepening correction appears to be underway since bonds made new 28-month price highs on 11/26/07. 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.

The U.S. dollar eased slightly lower. The short-term trend is still up. Longer term, the main trend is still Bearish. The dollar fell 19% from its high of 92.53 on 11/16/05 to its low of 74.65 on 11/23/07, moving it into “oversold”.


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

2.96% Airlines
1.81% Dow Transports
1.06% Consumer Staples
0.98% Disk Drives
0.94% Materials
0.84% Consumer Discretionary
0.79% Paper
0.76% Retailers
0.75% Industrial
0.66% United Kingdom
0.65% Canadian Dollar
0.61% Dow Composite
0.52% Utilities
0.43% Mexico
0.42% Sweden
0.41% Canada
0.38% Australian Dollar
0.36% Chemicals
0.34% Network
0.29% Dow Utilities
0.27% Commodity Related
0.21% Austria
0.21% British Pound
0.20% Brazil
0.18% Switzerland
0.18% Euro Index
0.15% Swiss Franc
0.12% S&P Mid Caps
0.11% Nasdaq 100
0.11% Value Line
0.11% Technology
0.08% Drugs
0.07% Broker Dealers
0.05% Hospitals
0.04% Dow Industrial
0.04% Semiconductors
0.03% Oil
-0.01% Health Care Products
-0.03% Germany
-0.05% Wilshire 5000
-0.05% Health Care
-0.07% NYSE Composite
-0.09% Russell 1000
-0.09% Russell 3000
-0.11% Nasdaq Composite
-0.11% Gold Mining
-0.14% US Dollar Index
-0.18% S&P 500
-0.18% Russell 2000
-0.19% Computer Tech
-0.20% S&P 100
-0.20% Health Care
-0.22% AMEX Composite
-0.22% S&P Small Caps
-0.22% Natural Gas
-0.25% Italy
-0.25% Spain
-0.28% Japanese Yen
-0.29% Energy
-0.31% REITs
-0.31% Belgium
-0.32% Netherlands
-0.39% Hardware
-0.42% Internet
-0.53% DOT
-0.53% Oil Services
-0.71% Biotechs
-0.83% France
-0.86% Taiwan
-0.88% Insurance
-0.90% Japan
-0.95% Financial
-1.00% Australia
-1.08% Singapore
-1.26% 30Y T-Bond
-1.37% Malaysia
-1.39% Banks
-1.50% South Korea
-4.86% Hong Kong