Five Stocks Setting Up For Swing Traders
The Dow Jones Industrial Average
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$INDU |
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and the Nasdaq Composite
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$COMPQ |
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the negative Nasdaq and Dow futures. The weakest sectors so far today are:
Computer-Hardware, Internet, Networking and Wireless, and semiconductors. Profit
warnings from semiconductor maker Advanced Micro Devices and Apple Computer are
pretty much responsible for the drag on tech. The positive sectors are Defense,
Utility, Gold, Biotech and Software.
The Treasuries, September 10-year note
(
TYU2 |
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(
USU2 |
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highs, while the September dollar
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DXU2 |
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hitting another 20-day low.
The Biotech Sector
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$BTK.X |
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enjoying some strength the past few days after underperforming for the last few
months. This has set up many issues as potential swing trading shorts, as
the countertrend rallies have pulled many of them higher off their recent lows.
Some issues which could prove to be interesting to swing traders are IDEC
Pharmaceuticals
(
IDPH |
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PowerRating), the Biotech HOLDRs
(
BBH |
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(
DNA |
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and Biogen
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BGEN |
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Homebuilders are on the move again Wednesday,
led by issues like Lennar
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LEN |
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three sessions, gaining more than 11%. The stock also eased concerns over
interest rates and slowing sales this morning by reporting earnings of $1.51 per
share, or 27 cents above the consensus estimate. Other potential candidates in
the group include Ryland
(
RYL |
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Pulte Homes
(
PHM |
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BZH |
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trading in a micro cup and handle at its high on the intraday chart, and KB
Homes
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KBH |
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consolidation pattern.
Yellow Corp.
(
YELL |
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on an expansion of its daily range. The stock has risen nearly straight
up since the open, and the transport stocks as a group
are moving higher Wednesday. Other stocks to watch for intraday patterns include
Roadway Systems
(
ROAD |
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(
JBHT |
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high volume in the session. YELL is holding a
3-month relative strength rank of 81 from TradingMarkets.com.
Abbott Labs
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ABT |
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the move off the low. Additionally, the stock is moving in the same manner as the overall
Pharmaceutical Index
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$DRG.X |
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PowerRating). ABT is holding a
3-month relative strength rank of 5 along with a downtrending ADX of 43 from
TradingMarkets.com.
Market Volatility Index
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$VIX.X |
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PowerRating) — 28.58, up 1.25.
NASDAQ 100 Volatility Index
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$VXN.X |
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54.89, up .34.
QQQ Volatility Index
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$QQV.X |
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PowerRating) — 48.19, up 2.46.
Nasdaq Breadth: 2002-06-19 13:21:28
Adv: 1381 / Dec: 1939 Net: -558
UpVol: 2742817 / DnVol: 5527359 Net: -2784542
Breadth: 2002-06-19 13:21:28
Adv: 1397 / Dec: 1696 Net: -299
UpVol: 26025280 / DnVol: 41815159 Net: -15789879
Despite the bearish market internals, the decline
has been relatively well contained with no follow-through selling developing.