Friday’s Stock Watch
The major
averages posted modest gains on the day, with above-average volume signifying
accumulation across the indices for the second day in a row. Internet, software,
and computer hardware stocks represented the strength of the day, with
biotechnology and pharmaceutical issues lagging in the red. The number of new
52-week highs posted on the NYSE and Nasdaq combined for a healthy 72, though
afternoon selling in leading sectors suggests some weakness. The stocks on our
watch lists were mixed, with one soon to be joining the S&P 500.
Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 1.25, and up volume over
down volume by a 1.54 ratio. Nasdaq advancing issues over declining issues came
in at 1.33, and up volume beat down volume by a 2.51 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed up
0.67% to
9,796.07. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed up
0.36% to
1,132.19.
The Nasdaq [$COMPQ |$COMPQ] closed up
1.05% to
1,942.58.
Issues
892,424,000
1,310,758,000
578,493,000
522,369,000
Volume
1,490,595,000
1,869,013,000
Highs
Top sectors:
Dow Jones Internet Commerce Index
(
$ECM.X |
Quote |
Chart |
News |
PowerRating) up 4.58% at 54.75.
Oil Service Sector Index
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) up
3.67% at 82.09.
Losing sectors:
Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating)
down 2.18% to 530.21.
Morgan Stanley Health Products
Index
(
$RXP.X |
Quote |
Chart |
News |
PowerRating) down
1.41% to 1050.19.
Sectors With New
Highs:
Business Services – 3
Discount Variety Stores – 3
Drugs – 3
Regional Banks – 6
REITs – 5
Watch List Action
Direct Focus Inc.
(
DFXI |
Quote |
Chart |
News |
PowerRating) fell 2.29% on high volume. Since its breakout
two weeks ago, the stock has posted two distribution days and two accumulation days.
Copart Inc.
(
CPRT |
Quote |
Chart |
News |
PowerRating) rose 5.58% on less than average volume for an
accumulation day. The stock split 3 for 2Â yesterday, and is to become a
member of the S&P 500.
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.
American Healthways Inc.
(
AMHC |
Quote |
Chart |
News |
PowerRating), up 2.14% on low volume.
size=2>Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating), down 5.65% on above-average
volume.
MTR Gaming Group
(
MNTG |
Quote |
Chart |
News |
PowerRating), down 1.87% on above-average
volume for a distribution day.
Nvidia Corp.
(
NVDA |
Quote |
Chart |
News |
PowerRating), up 3.58% on average volume
for an accumulation day.
Panera Bread Co.
(
PNRA |
Quote |
Chart |
News |
PowerRating), up 1.88% on average volume.
PEC Solutions
(
PECS |
Quote |
Chart |
News |
PowerRating), up 2.54% on 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 |
| size=2>American Healthways Inc. | size=2> ( AMHC | Quote | Chart | News | PowerRating) | 98 | 30.02 | + 0.63 | 310,200 |
| size=2>Copart Inc. | size=2> ( CPRT | Quote | Chart | News | PowerRating) | 82 | 22.91 | + 1.21 | 768,400 |
| size=2>Direct Focus Inc. | size=2> ( DFXI | Quote | Chart | News | PowerRating) | 88 | 36.05 | – 0.85 | 835,200 |
| size=2>Genesis Microchip | size=2> ( GNSS | Quote | Chart | News | PowerRating) | size=2>99 | 55.36 | – 3.32 | 2,593,200 |
| size=2>MTR Gaming Group | size=2> ( MNTG | Quote | Chart | News | PowerRating) | 93 | 16.19 | – 0.31 | 558,500 |
| size=2>Nvidia Corp. | size=2> ( NVDA | Quote | Chart | News | PowerRating) | 96 | 65.64 | + 2.27 | 9,395,900 |
| size=2>Panera Bread Co. | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 95 | 57.91 | + 1.07 | 270,100 |
| size=2>PEC Solutions | size=2> ( PECS | Quote | Chart | News | PowerRating) | 97 | 29.38 | + 0.73 | 685,700 |
Stocks Forming a Handle
Integra Lifesciences
(
IART |
Quote |
Chart |
News |
PowerRating) up 0.64% 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 |
| size=2>Integra Lifesciences | size=2> ( IART | Quote | Chart | News | PowerRating) | 93 | 31.00 | + 0.20 | 340,100 |
Stocks Building A Base
Multimedia Games Inc.
(
MGAM |
Quote |
Chart |
News |
PowerRating), down 3.58% on
high volume for a distribution 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 |
| size=2>Multimedia Games Inc. | size=2> ( MGAM | Quote | Chart | News | PowerRating) | size=2>99 | 33.90 | – 1.26 | 179,000 |
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com