Friday’s Stock Watch
The major averages barely managed to post a gain today, as volume
was once again below average. Airline, retail,
computer hardware, and transportation stocks made the greatest advances, with
software, Internet, oil, and pharmaceutical issues showing the greatest
declines. While the Dow and S&P 500 flirt with their 50-day moving averages, the
Nasdaq remains well below this mark. New 52-week highs continue to dominate the
lows. All stocks on our watch list were green, with
one breakout.
Market breadth was neutral, with NYSE
advancing issues over declining issues by a ratio of 1.24, and down volume over
up volume by a 1.10 ratio. Nasdaq advancing issues over declining issues came in
at 1.06, and up volume over down volume by a 1.06 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed up 0.36 at 10235.17. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed up 0.08 at 1126.34.
The Nasdaq [$COMPQ |$COMPQ] closed up 0.30% at 1789.73.
Â
1,724
1,787
Issues
1,392
1,692
591,225,000
859,131,000
650,871,000
812,349,000
Total
Volume
1,254,760,000
1,704,847,000
Highs
33
19
11
5
Top sectors:
Airline
Index
(
$XAL.X |
Quote |
Chart |
News |
PowerRating)
up 3.23% at 100.30.
S&P Retail Index
(
$RLX.X |
Quote |
Chart |
News |
PowerRating) up
1.66% at 935.39.
Losing sectors:
GSTI Software
Index
(
$GSO.X |
Quote |
Chart |
News |
PowerRating) down 2.82% at 147.50.
Oil
Index
(
$OIX.X |
Quote |
Chart |
News |
PowerRating) down 2.46% to 325.07.
New 52-Week Highs Consolidations:
Banking – 15
Real Estate – 12
Utilities – 8
Computer Software – 7
Retail – 7
Consumer Non-Durables – 6
Specialty Retail – 6
Wholesale – 6
Insurance – 5
Food and Beverage – 4
Health Services – 4
Telecommunications – 4
Consumer Durables – 3
Financial Services – 3
Materials and Construction – 3
Watch List Action:
Direct Focus
(
DFXI |
Quote |
Chart |
News |
PowerRating) managed to gain 3.60% on above average volume,
though traded down over 8% form its pivot point at its intraday low. This stock
will be coming off the “breakout list”.
Breaking out today, we had Christopher & Banks Corporation
(
CHBS |
Quote |
Chart |
News |
PowerRating), as it
moved 15.20% on almost three times average volume. Though the breakout is clean,
the base and handle are sloppy. Given this highly questionable market with
breakouts continuing to fail, we can’t expect much from this one.
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.
Direct Focus Inc.
(
DFXI |
Quote |
Chart |
News |
PowerRating) up 3.59% on above-average volume.
Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating), up 0.27% on below-average volume.
size=2>Multimedia Games Inc.
(
MGAM |
Quote |
Chart |
News |
PowerRating), up 0.74% 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 |
Direct Focus Inc. | ( DFXI | Quote | Chart | News | PowerRating) | 89 | 36.87 | + 1.28 | 830,800 | 36.54 | 39.82 |
Group 1 Automotive | ( GPI | Quote | Chart | News | PowerRating) | 95 | 37.10 | + 0.10 | 309,200 | 33.14 | 43.69 |
size=2>Multimedia Games Inc. | size=2> ( MGAM | Quote | Chart | News | PowerRating) | size=2>99 | 32.59 | + 0.24 | 365,200 | 30.91 | 37.05 |
Stocks Forming a Handle
Christopher & Banks Corporation
(
CHBS |
Quote |
Chart |
News |
PowerRating),Â
up 15.20% on almost three times average volume for a breakout.
Krispy Kreme Doughnuts
(
KKD |
Quote |
Chart |
News |
PowerRating), up 2.30% on
below-average volume. At its low today, this one was 13% below the high of
its handle. We want to see the price action stay within 10% to 15% of the
height of the handle, so this one still qualifies. Remember, rough-cut
handles are often signals of a breakout failure. Be sure to read our
lesson on handles.
Movie Gallery
(
MOVI |
Quote |
Chart |
News |
PowerRating), up 4.03% on below
average
volume.
size=2>
size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), up 1.81%
on below-average volume for an
accumulation day.
| 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 |
Christopher & Banks | ( CHBS | Quote | Chart | News | PowerRating) | 85 | 34.40 | + 4.54 | 498,100 | 33.60 |
Krispy Kreme Doughnuts | ( KKD | Quote | Chart | News | PowerRating) | 82 | 39.49 | + 0.89 | 632,800 | 44.12 |
Movie Gallery | ( MOVI | Quote | Chart | News | PowerRating) | 97 | 16.23 | + 0.63 | 408,600 | 17.99 |
size=2>Panera Bread Co | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 93 | 62.70 | + 1.12 | 442,400 | 66.23 |
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 |
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href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com
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