Friday’s Stock Watch
The major averages managed
to post slight gains on a thinly traded session, with Internet,
telecoms, gold and silver, and oil issues making the biggest advances, and
biotechnology, utilities, and healthcare stocks deepest in the red. The Dow
managed to close back above its 50-day moving average, with the S&P 500 and
Nasdaq still well below this mark. The new 52-week highs and lows list remained
relatively quiet. There was only one gainer from our watch lists, and one stock
failing to keep a place.
Market breadth was mixed, with NYSE declining issues over
advancing issues by a ratio of
1.22, and down volume over up volume by a 1.00 ratio. Nasdaq declining issues
over advancing issues came in at 1.22, and up volume beat down volume by a
convincing 1.87
ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed up 0.44% at 10289.23. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed up 0.65% at 1098.23.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed up 0.28 at 1730.43.
Â
1,422
1,579
Issues
1,733
1,928
603,471,000
1,036,123,000
602,240,000
554,786,000
Total
Volume
1,227,269,000
1,625,368,000
Highs
37
29
11
5
Top sectors:
CBOE Internet Index
(
$INX.X |
Quote |
Chart |
News |
PowerRating), up 2.77% at
100.00.
North American Telecoms Index
(
$XTC.X |
Quote |
Chart |
News |
PowerRating),
up 2.37% at 536.91.
Losing sectors:
Biotechnology
Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) down
3.26% at
408.87.
Dow
Jones Utility
Index
(
$UTIL.X |
Quote |
Chart |
News |
PowerRating)
down 2.67% at 286.03.
Sectors with Most New 52-Week Highs:
Banking – 37
Consumer Non-Durables – 12
Retail – 13
Watch List Action:
From our “handles” list, Right Management Consultants
(
RMCI |
Quote |
Chart |
News |
PowerRating) rose 2.97%
on below average volume for an accumulation day. As with the rest of the stocks
on our “handles” list, this handle does not possess the qualities we are looking
for. Though the given pattern remains bullish with a breakout likely. For a good
read on the components that make a good handle, and thus a good buy signal, be
sure to check out
our lesson on handles.
Beazer Homes
(
BZH |
Quote |
Chart |
News |
PowerRating) fell 3.98% on above average volume for a distribution
day. The handle as now violated the half way point of the height of its base,
and will be coming off the list. We don’t like to see the handle move more than
10% to 15% from its high point.
Recent Breakouts
size=2>We monitor the action of Recent Breakouts as an indicator of
the market health for IT traders. When breakouts are acting well, this is a good
sign for the likelihood of further sustainable breakouts. When breakouts are
failing, IT traders should be even more cautious.
Chicos FAS Inc.
(
CHS |
Quote |
Chart |
News |
PowerRating), down 0.73% on
below-average volume.
Christopher & Banks Corporation
(
CHBS |
Quote |
Chart |
News |
PowerRating), down
1.02% on light volume.
Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating), down 0.98% on
light volume.
size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), down 1.50%
on below-average
volume.
| color=#ffffff size=2>Company Name | color=#ffffff size=2>Symbol | color=#ffffff size=2>12 Month RS | color=#ffffff size=2>Price | color=#ffffff size=2>Price Change | color=#ffffff size=2>Average Volume | Pivot | 52-Week High |
| Chicos FAS Inc. | ( CHS | Quote | Chart | News | PowerRating) | 94 | 40.28 | – 0.30 | 659,100 | 38.08 | 40.73 |
Christopher & Banks | ( CHBS | Quote | Chart | News | PowerRating) | 92 | 40.54 | – 0.42 | 518,100 | 33.60 | 39.25 |
Group 1 Automotive | ( GPI | Quote | Chart | News | PowerRating) | 95 | 49.22 | – 0.49 | 277,600 | 42.23 | 46.72 |
size=2>Panera Bread Co | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 92 | 67.41 | – 1.03 | 408,700 | 66.74 | 72.05 |
Stocks Forming a Handle
Beazer Homes
(
BZH |
Quote |
Chart |
News |
PowerRating), down 3.98%
size=2>
on heavy volume for a
distribution day.
DR Horton Inc.
(
DHI |
Quote |
Chart |
News |
PowerRating), down 2.67% on half its
average volume.
Right Mgt. Consultants
(
RMCI |
Quote |
Chart |
News |
PowerRating), up 2.96% on
average volume for an accumulation day.
Winnebago Industries
(
WGO |
Quote |
Chart |
News |
PowerRating) down 0.38% on
below-average volume.
| color=#ffffff size=2>Company Name | color=#ffffff size=2>Symbol | color=#ffffff size=2>12 Month RS | color=#ffffff size=2>Price | color=#ffffff size=2>Price Change | color=#ffffff size=2>Average Volume | Pivot |
Beazer Homes | ( BZH | Quote | Chart | News | PowerRating) | 79 | 80.88 | – 3.36 | 596,800 | 91.45 |
DR Horton Inc. | ( DHI | Quote | Chart | News | PowerRating) | 87 | 25.07 | – 0.69 | 2,271,800 | 27.14 |
Right Mgt. Consultants | ( RMCI | Quote | Chart | News | PowerRating) | 90 | 27.75 | + 0.80 | 307,700 | 28.95 |
Winnebago Industries | ( WGO | Quote | Chart | News | PowerRating) | 95 | 48.71 | – 0.19 | 234,900 | 49.60 |
Stocks Building A Base
color=#ffffff size=2>Company Name | color=#ffffff size=2>Symbol | color=#ffffff size=2>12 Month RS | color=#ffffff size=2>Price | color=#ffffff size=2>Price Change | color=#ffffff size=2>Average Volume |
None | Â | Â | Â | Â | Â |
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com
If you are new to the “IT” strategy, be sure to
take a look at our
intermediate-term online trading course.