Friday’s Stock Watch

• February 28, 2002
• TradingMarkets Editors

The Nasdaq
was hit with its second day of distribution in a row, as the Dow and
the S&P 500 closed well off their intraday highs to close at the bottom of their
ranges. Despite these negative signs, the NYSE managed to post over 50 new
52-week highs, and only a handful of losses. This has been the trend for the
week, and despite the markets’ stagnation there is obviously some real interest
for the upside. Consumer and cyclical stocks have been areas of strength, with
technology clearly the weak hand. Stocks on our watch lists held up well, with
one new breakout, and encouraging behavior from our other new breakout. 

Market breadth was mixed, with NYSE
advancing issues over declining issues by a ratio of 1.14, though down volume
beat up volume by a 1.15 ratio. Nasdaq declining issues over advancing issues came
in at 1.16, and down volume beat up volume by a 2.58 ratio.

The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed
down
0.21% to
10,106.13. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed down
0.19% to
1,107.8.
The Nasdaq [$COMPQ |$COMPQ] closed down
1.15% to
1,731.49.

 

Top sectors:

Oil Service
Sector Index
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) up 1.10% at 92.93.

GSTI Services Index
(
$GSV.X |
Quote |
Chart |
News |
PowerRating) up
0.54% at 158.76.

Losing sectors:

Semiconductor
Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) down 3.09% at 510.86.

Nasdaq Combined Transport Index
(
$TRAN.X |
Quote |
Chart |
News |
PowerRating) down 3.01% at 1328.09.

Watch List Action:

Bucking the trend of the markets, Multimedia Games
(
MGAM |
Quote |
Chart |
News |
PowerRating) broke out with
a 9.62% gain on almost two and a half times average daily volume. This leisure
and gaming company makes high-stakes and electronic-based bingo games for the
Indian gaming industry. With the last two quarters’ growth coming in at 85% and
725%, this company easily met our requirements. The stock recently had a 3-for-2
stock split marked by the yellow arrow. 

Group 1
Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating) had another good day by gaining 2.96% on above average
volume. Since breaking out Monday, this stock hasn’t looked back.

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.

size=2>Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating), down 42.70% on over nine and a half
times average daily volume. Holy smokes!

Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating), up 2.96% on above-average volume.

size=2>Nvidia Corp.
(
NVDA |
Quote |
Chart |
News |
PowerRating), down 4.02% on above-average volume.

size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), down 2.98%
on above-average 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	Pivot	52-Week High
size=2>Genesis Microchip	size=2> ( GNSS | Quote | Chart | News | PowerRating)	90	23.49	– 17.51	3,361,400	38	74.90
Group 1 Automotive	( GPI | Quote | Chart | News | PowerRating)	91	37.53	+ 1.08	282,200	33.14	34.99
size=2>Nvidia Corp.	size=2> ( NVDA | Quote | Chart | News | PowerRating)	88	51.01	– 2.14	9,673,200	52.67	72.66
size=2>Panera Bread Co.	size=2> ( PNRA | Quote | Chart | News | PowerRating)	91	51.64	– 1.59	370,400	14.55	64.94

Stocks Forming a Handle

DRS Technologies
(
DRS |
Quote |
Chart |
News |
PowerRating), up 1.21% on below
average volume for its second accumulation day in a row.

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
DRS Technologies	( DRS | Quote | Chart | News | PowerRating)	95	40.00	+ 0.48	275,700

Stocks Building A Base

size=2>Multimedia Games Inc.
(
MGAM |
Quote |
Chart |
News |
PowerRating), up 9.61% on over twice average
volume for a breakout.

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	31.57	+ 2.77	326,000

 

href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com