The Red Roadmaster’s US Market Monthly Re-cap + Stock Talk ™

8 April 2010 Date Line: Hong Kong (SAR) China

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Red’s Bull Alert: IMO, the market is a bit overbought in here as it approaches the Key resis-tance level of 11,000 and Mr. Hoenig's remarks were an excuse for the Bull to pause to refresh in here.

Re-cap of the US Stock Market Action for the session ending 7 April 2010

US stocks fell late in the day Wednesday after a Federal Reserve official said interest rates should not stay low for much longer, thus giving some investors an excuse to take some gains off of the table as the Bull rested. The DJIA dipped 72.47 pts, or 0.66%, to close at 10,897.52, the S&P 500 dropped 6.99 pts, or 0.59%, to close at 1,182.45, the NAS tallied up a minus 5.65 pts, or 0.23%, to end the session at 2,431.16.

Federal Reserve Chairman Ben Bernanke said the US economy still faces significant headwinds, sug-gesting again that he is in no rush to raise interest rates.

In contrast, Kansas City Federal Reserve Bank President Thomas Hoenig said keeping interest rates too low for too long would encourage risky financial behavior.

IMO, the market is a bit overbought in here as it approaches the Key resistance level of 11,000 and Mr. Hoenig's remarks were an excuse for the Bull to pause to refresh in here.

The CBOE Volatility Index .VIX, Wall Street's fear gauge, gained 2.4% after closing Tuesday at a 30 month low. Despite the gain, the VIX remains at low levels, suggesting little fear among investors.

Stocks gained some ground in the early afternoon after strong demand at a US$21B Treasury auction of 10-year notes, but the momentum was short-lived. Markets face a US$13B 30 year bond sale today.

A stronger USD also slowed some buying in the early going the Dollar Index climbed to a gain of 0.4% before it pulled back to settle with a gain of 0.2%. Most of the Greenback's strength was down to the Euro, which weakened in the wake of news that EuroZone economic activity was flat in Q-4 Y 2009.

Precious metals were unfazed by the USD, though, and Gold prices climbed 1.5% to US$1137 oz, and Silver prices settled 1.5% higher at US$18.20 oz.

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Strength among precious metals plays helped offset the weakness of Monsanto within the materials sec-tor, which fell 0.7%, as Monsanto posted an earnings miss and confirmed a tepid forecast.

Advancing Sectors: (None)

Declining Sectors: Telecom (-2.3%), Energy (-1.0%), Utilities (-0.9%), Materials (-0.7%), Industrials (-0.6%), Financials (-0.5%), Consumer Discretionary (-0.5%), Consumer Staples (-0.5%), Health Care (-0.4%), Tech (-0.2%)

Volume and Breadth: About 9.63B/shrs traded on the NYSE, the AMEX and NAS, in line with last year's estimated daily average of 9.65b/shrs. Decliners outnumbered advancers on the NYSE by 2 to 1, and on the NAS, about 5 stocks fell for each 4 that rose.

Gold Focus Report

Gold at US$1,500 by Year-End

Gold rallied for a 5th day running despite weakness in the Euro and the energies. The benchmark contract jumped +1.5% and settled at US$1153 oz, the highest close since December 2009. Recent strength in the Yellow metal is impressive. Research showed that Gold failed to advance strongly during Argentina's credit default in Y 2001.

However, Gold has shown resilience during Greece’s financial crisis. As Greece is a member of the EuroZone, its deficit problem particularly pressures the Euro.

Nevertheless, the selloff in Euro has not caused Gold to decline hard. Rather, the Gold price in EUR terms reached a record high. A further rise remains in favor as long as 1123.5, the minor support holds targeting a retest of 1145.8 the next resistance.

On the Downside: a break below 1123.5 will indicate that a short term top has formed and should bring some lengthier consolidation before staging another rally.

The Big Picture: price actions from 1227.5 are treated as correction to rise from 931.3 only, no doubt. the lack of impulsive structure of rise from 1044.5 augurs that it is possibly part of consolidation from 1227.5, rather than resumption of the long term up-trend. A move above 1145.8 will bring retest of 1227.5 high but upside will likely be limited there and bring at least one more fall before the consolidation concludes.

On the Downside: a move below the 1084.8 support will shift favors to the case that correction from 1227.5 is developing into a 3 wave move with another low below 1044.5. Stay tuned…

Stocks to Watch Today

Barrick Gold Corporation (ABX), Broadcom Corporation (BRCM) First Look, Cisco Systems, Inc. (CSCO), and Intel Corporation (INTC).

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Barrick Gold Corporation (ABX) Up-Date 7 Last Look: February 19, 2010

April 8, 2010

Paul A. Ebeling, Jnr. Analyst

Today, let’s look at Barrick Gold Corporation (ABX), the Golden name in the world’s Gold mining sector: from a Technical POV. The overall indications, after Wednesday’s (April 7) market action, are: Bullish, near term Neutral, mid-term Bullish, and long term Bullish. The recent Candle Stick analysis is: Very Bearish

** Chart by: http://www.stockta.com

Latest News and Opinion: Gold Prices at US$1,150

http://www.thestreet.com/_yahoo/story/10719960/1/gold-prices-buck-dollar-head-higher.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

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Wednesday’s Market Action Close 40.70 + 1.28 Volume 14,610,314/shrs

There is a Bearish Doji Stat on April 5, and one Gap open up on April 7 at: 39.71/39.78, support at 40.30, resistance at 40.80 and the 50 day exponential moving average is 38.72.

This is Barrick Gold Corporation (ABX): In the world of mining, Barrick Gold is the Gold Standard. The company became the world's One # One Gold producer, ahead of Newmont Mining and AngloGold Ashanti, after acquiring Placer Dome in 2006. Barrick puts out 8MM ozs of Gold annually and has 125MM ozs in proven and probable reserves. About ½ of its production comes from the North American opera-tions, which include Goldstrike, located in Nevada's Carlin Trend Gold producing region. Outside of North America Barrick has active projects in Tanzania, Peru, and Australia. On the Placer Dome acquisition came huge copper mining operations that brought Barrick more than 6B Lbs of Copper reserves.

Note: In the metals mining sector demand is driven by industrial demand and economic growth, both domestic and foreign. A company’s profitability depends on volume and efficient operations. Large companies like Barrick can afford to discover and develop new deposits and increase reserves. Small companies typically own just one mine, limit exploration to that one property, and operate it as efficiently as possible. Gold mining today is highly automated; annual revenue per employee is approx. US$30

Gold and Politics

On August 15, 1971, US President, Richard Nixon unilaterally canceled the Bretton Woods system and stopped the direct convertibility of the United States dollar to gold. As a result, the U.S. dollar was decou-pled from Gold, and Gold prices could fluctuate like any other commodity.

The data is limited when comparing the performance of Gold prices as they relate to the political affiliation of the President of the United States. There are some striking similarities between the performance of Gold prices during the great Gold Bull Market of the 1970s and today's Gold Bull Market and how the Presidential political affiliation was and is tilted.

When Barack Obama, was elected the 44th President of the United States of America, some Gold Bugs became extremely happy because the biggest Gold Bull Market in modern history peaked during a political landscape that is similar to what we see today.

Barrick Gold Corporation (HQ)

Peter Munk, Chairman and acting CEO

Brookfield Place, TD Canada Trust Tower, 161 Bay St., Ste. 3700Toronto, Ontario M5J 2S1, Canada 

Phone: 416-861-9911Fax: 416-861-2492Toll Free: 800-720-7415

www.barrick.com

Broadcom Corporation (BRCM) First Look

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April 8, 2010

Paul A. Ebeling, Jnr. Analyst

Today, let’s look at Broadcom Corporation (BRCM), the designer developer, and supplier of semiconductors for wired and wireless communications, from a Technical POV. The overall indications, after Wednesday’s (April 7) market action, are Very Bullish: in the near term Bullish, mid-term Very Bullish, and long term Very Bullish. The recent Candle Stick analysis: Very Bearish

**Chart by: http://www.stockta.com

Latest News and Opinion: Entropic Drops On BWS Downgrade; Sees BRCM Competition

http://blogs.barrons.com/techtraderdaily/2010/04/07/entropic-drops-on-bws-downgrade-sees-brcm-competition/?mod=yahoobarrons

Wednesday’s Market Action Close 34.13 - .27 Volume 7,215,321/shrs

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There is a Bearish Harami on April 6 and no Gaps open up or down on the Chart, the near term resistance is 34.31, support at 33.78, and the 50 day (EMA) exponential moving average is 32.10.

This is Broadcom Corporation (BRCM), the Company designs, develops, and supplies semiconductors for wired and wireless communications. It provides a portfolio of system-on-a-chip and software solutions, which enable the delivery of voice, video, data, and multimedia content to mobile devices; consumer electronics devices in the home; and business networking products for the workplace, data centers, service providers, and carriers. The company serves the manufacturers of computing and networking equipment, consumer electronics and broadband access products, and mobile devices. Its broadband communications products include solutions for digital cables, satellite and Internet protocol (IP) set-top boxes, and media servers; cable and digital subscriber line modems and residential gateways; high definition televisions; high definition Blu-ray Disc players; and digital video recorders. The company’s mobile and wireless products comprise integrating solutions in applications for wireless and personal area networking; cellular communications; personal navigation and global positioning; processing multimedia content in smart phones; and for managing the power in mobile devices. Broadcom Corporation’s enterprise networking products consist of Ethernet transceivers, controllers, switches, broadband network and security processors, and server chipsets. It markets and sells its products through direct sales force, distributors, and manufacturers’ representatives in the United States, as well as through regional offices, and a network of independent distributors and representatives in Asia, Australia, Europe, and North America. The company was founded in 1991 and is headquartered in Irvine, California.

Competitive Landscape

The industry depends highly on demand from the computer industry and makers of telecommunications products such as cell phones, which can vary sharply from year to year. Companies can be successful producing standard parts at low cost or by producing highly specialized components. Small companies can compete effectively with large ones by producing specialized products or developing new applications. Technological expertise is extremely important. The industry is capital-intensive: average annual revenue per employee is about US$300,000

Broadcom Corp. (HQ)

Scott A. McGregor, Chief Exec. Officer and President5300 California Avenue Buildings 1-8Irvine, CA 92617United States Phone: 949-926-5000Fax: 949-926-5203 http://www.broadcom.com

Cisco Systems, Inc (CSCO) Up-date 14 Last Look: March 4, 2010

April 8, 2010

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Paul A. Ebeling, Jnr. Analyst

Today let’s look at Cisco Systems, Inc. (CSCO), the backbone of the Internet, from a Technical POV. The overall indications, after Wednesday’s (April 7) market action, are overall Bullish, in the near term Neutral, mid-term Very Bullish, and long term Bullish. The recent Candle Stick analysis is: Neutral

**Chart by: http://www.stockta.com

Latest News and Opinion: Tech Bubble Survivors That Still Have Something to Prove

http://www.minyanville.com/businessmarkets/articles/tech-bubble-stocks-decade-charts-emc/4/7/2010/id/27670?camp=syndication&medium=portals&from=yahoo

Wednesday’s Market Action Close 26.34 + .12 Volume 43,837,057/shrs.

There is one Gap open up on March 8 at 25.24/25.26, support at 26.64, the near term resistance is 26.64, the 50 day exponential moving average at 25.32.

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This is Cisco Systems (CSCO): Cisco Systems routes packets and routs competitors with equal efficiency. The Company dominates the market for IP-based networking equipment, providing routers and switches used to direct data, voice, and video traffic. Some of their other products include remote access servers, IP telephony equipment, optical networking components, Internet conferencing systems, set-top boxes, and network service and security systems. Cisco sells its products primarily to large enterprises and telecommunications service providers, but it also markets products designed for small businesses and consumers through its Linksys division. If you are connected to the internet via a wireless network at home or in your office you likely have Linksys system.

Note: The industry sector in which Cisco competes depends on purchases from businesses, telephone companies, cable companies, data communications providers, + TV and radio broadcasters.

Competitive Landscape

Profitability for individual companies with in the sector is linked to technical innovation and the ability to secure high-volume contracts from large customers. Small companies can be successful if they make highly specialized products. There are large economies of scale in manufacturing standard products, but many products are specialized and produced in small manufacturing plants. Annual revenue per employee in a large plant varies from US$500,000 to US$1M.

The output of US communication equipment manufacturing is forecast to grow at an annual compounded rate of 2 percent between 2007 and 2012.

Cisco Systems, Inc. (HQ)John T. Chambers, Chairman and CEO

170 West Tasman Dr SAN JOSE CA 95134-1706 Phone: 408-526-4000 Fax: 408-526-4100

www.cisco.com

Intel Corporation (INTC) Up-date 15 Last Look: March 17, 2010

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April 8, 2010

Paul A. Ebeling, Jnr. Analyst

Today let’s look Intel Corporation (INTC), the World’s #1 manufacturer of semiconductors, from a Technical POV. The overall indications, after Wednesday’s (April 7) market action, are Neutral : in the near term Neutral, mid-term Bullish, and long term Neutral. The recent Candle Stick analysis is: Very Bearish

**Chart by: http://www.stockta.com

Latest News and Opinion: UBS raised its earnings estimates on shares of Intel as the company introduces its new products

http://www.forbes.com/2010/04/07/upgrades-key-bac-intc-marketnewsvideo.html?partner=yahootix

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Wednesday’s Market Action Close 22.45 + .05 Volume 62,524,075/shrs

There is a DOJI on April 7 and no Gaps open up or down on the chart, the near term resistance is 22.69, support at 22.42, and the 50 day (EMA) exponential moving average is 21.36.

This is Intel Corporation (INTC): Intel is #1 in semiconductors. The company holds the lion’s share in the market for microprocessors that go into desktop and notebook computers, and also into computer servers. For a time rival AMD took some of Intel’s market share, but Intel fought back with faster processors and advanced manufacturing technology and ate AMD. Intel makes embedded semiconductors for the industrial equipment and networking gear markets. Most computer makers use Intel processors; PC giants Dell (18% of sales) and Hewlett-Packard (17%) are the company’s largest customers. The Asia/Pacific region generates more than half of Intel’s revenues.

Competitive Landscape

The industry depends highly on demand from the computer industry and makers of telecommunications products, which can vary sharply from year to year. Companies can be successful producing standard parts at low cost or by producing highly specialized components. Small companies can compete effectively with large ones by producing specialized products or developing new applications. Technological expertise is extremely important. The industry is highly automated: average annual revenue per employee is about US$250,000.

Intel Corporation (HQ)

Chairman Craig R. Barrett

2200 Mission College Blvd. Santa Clara, CA 95054-1549United StatesPhone: 408-765-8080Fax: 408-765-3804Toll Free: 800-628-8686http://www.intel.com

Intel Corp. SubsidiariesHavok.com Inc. IM Flash Technologies, LLCIntel (China) Ltd.

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