Friday’s Stock Watch
The broader markets
attempted to push higher today but fell short of any meaningful follow
through. Big caps took to the upside while our leadership in the technology
sector fell in what appears to be profit taking. The Dow has now made it to the
resistance levels of the pre-September 11 attacks, as the S&P 500 and the Nasdaq
made new two-month highs. Top tech names Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) and Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating)
also made new 2-month highs, though sold off to close below their 200-day moving
averages. Judging by the late-day sell-offs these past two trading sessions, the
major indexes could see a pullback here. On the upside, the 200-day moving
averages will be the next resistance targets. Overall volume on the day was
above average. The Nasdaq digested a hefty 2.29 billion shares making this
the first distribution day after three days of accumulation. This is the second
distribution day in the last two weeks. We are still waiting for stronger
indications that we are in a certified bull market.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating)
closed up
0.35% to
9,587.52. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed down
0.26%
to
1,118.68.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed up
0.53%
to
1,827.77.
Overall volume on the NYSE was
2,278,622,000. NYSE advancing issues were 1,688, with up-volume at 755,195,000; declining issues were
1,420, with down-volume at 695,069,000.
Overall volume on the Nasdaq was 1,005,358,000. Nasdaq advancing issues were
1,827, with up-volume at 1,005,358,000; declining issues were 1,798 with down-
volume at 1,257,353,000. The NYSE had 17 new 52-week highs and 1new low. The Nasdaq had
10 new 52-week highs, and 7 new lows. There were no standout sectors for the new
highs list.
The top sectors were:
Oil Services
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), up 2.36%, utilities
(
$UTY.X |
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Chart |
News |
PowerRating), up 1.63%, and airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), up 1.19%.
Losing sectors were:
Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating)
down 2.96%.
Semiconductor Sector Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)
down 2.29%.
Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating) found its way off our breakout list onto the
biggest point loser of the day by shedding 14.10% of its share price after a
rumor of a patent infringement lawsuit was let out. The company denies the
rumor.
Michael’s Stores
(
MIKE |
Quote |
Chart |
News |
PowerRating) broke out to new highs today with an increase of
over 300% on volume. This company is national specialty retailer providing
materials, ideas and education for creative activities in home decor, art and
craft projects.
Microsemi Corp
(
MSCC |
Quote |
Chart |
News |
PowerRating) managed to breakout to a new 52-week high today,
but fell victim to a sell off with the rest of the semiconductor sector. Volume
today was only slightly above average.
Recent Breakouts with a Relative Strength
of 80 or Better:
Company Name |
Symbol |
Relative Strength |
Price |
Average Volume |
| AutoZone Inc. | ( AZO | Quote | Chart | News | PowerRating) |
95 | 65.45 | 1,584,900 |
| Cholestech Corp. | ( CTEC | Quote | Chart | News | PowerRating) |
99 | 24.40 | 272,500 |
| Mohawk Industries | ( MHK | Quote | Chart | News | PowerRating) |
95 | 47.75 | 377,200 |
| Michaels Stores | ( MIKE | Quote | Chart | News | PowerRating) |
96 | 55.35 | 581,600 |
Stocks Building
A Base With A Minimum Relative Strength of 80.
Company Name |
Symbol |
Relative Strength |
Price |
Average Volume |
| Career Education Corp. | ( CECO | Quote | Chart | News | PowerRating) |
92 | 31.96 | 1,083,000 |
Stocks forming a
Handle
Company Name |
Symbol |
Relative Strength |
Price |
Average Volume |
| Pec Solutions Inc. |
( PECS | Quote | Chart | News | PowerRating) |
97 | 25.00 | 433,200 |
| Krispy Kreme Doughnuts | ( KKD | Quote | Chart | News | PowerRating) |
95 | 36.70 | 570,700 |
| Integra LifeSciences Hld | ( IART | Quote | Chart | News | PowerRating) |
96 | 29.35 | 347,800 |
| THQ Inc. | ( THQI | Quote | Chart | News | PowerRating) |
96 | 55.11 | 2,261,300 |
Remember that all securities are
risky. In any trade, you should always reduce your risk by adjusting position
size and placing open protective stops where you will sell your long or
cover your short in case the market turns against you. For an introduction to
combining price stops with position sizing, see our lesson,
Risky
Business.