Here Are Friday’s Names…
The
broader markets all moved higher in the session after positive news
came out with regard to Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating), even in light of some negative
economic data this morning. The news that propelled the markets higher was that
the Department of Justice and MSFT have reached a tentative agreement in the
antitrust suit brought against the software giant.
The tech-laden Nasdaq Composite
closed higher Thursday as the index gained 3.3%. Volume for the Nasdaq was lower
by 6.71% from the prior day.
The session was
definitely positive to say the least; we saw Nasdaq advancers leading
decliners 2030 to 1480, as breadth was positive for the day. In addition, Nasdaq Up Volume
led Down Volume 1,297,660,100 to 414,785,600.
There were 48 Nasdaq
stocks making new 52-week highs verses 71 stocks making new 52-week lows for the
session. We will need to see some improvement with more stocks making new highs
before we get extremely excited and rush into the markets. The Nasdaq is still
trading below its 200-day moving average and has quite a bit of overhead
resistance ahead of it.
Looking at individual
leaders in the session meeting our criteria, American Healthways
(
AMHC |
Quote |
Chart |
News |
PowerRating)
broke out easily in the session after forming a two- day handle. The healthcare
company has been showing some nice earnings sales growth for the last 4
quarters. Earnings were growing at 14%, 250%, 175% and 100%, while sales growth
was increasing 26%, 34% 59% and 48% respectively.
PEC Solutions
(
PECS |
Quote |
Chart |
News |
PowerRating),
which has been on our watch, list broke out in the session. The breakout was on
high volume, however it closed near its pivot point. We will continue to watch
to see if the breakout is for real.
Stocks Breaking
out on High Volume with a Relative Strength of 80 or Better:
| Company Name |
Symbol | Relative Strength |
Price | Average Volume |
Today’s Volume |
| NONE |
Stocks Building
A Base With A Minimum Relative Strength of 80.
| Company Name |
Symbol | Relative Strength |
Price | Average Volume |
Today’s Volume |
| Krispy Kreme Doughnuts |
( KKD | Quote | Chart | News | PowerRating) |
93 | 34.25 | 901,800 | 507,700 |
| PEC Solutions | ( PECS | Quote | Chart | News | PowerRating) |
95 | 25.89 | 293.300 | 469,500 |
| THQI Inc. | ( THQI | Quote | Chart | News | PowerRating) |
93 | 50.94 | 1,193,000 | 860,100 |
Stocks forming a
Handle
| Company Name |
Symbol | Relative Strength |
Price | Average Volume |
Today’s Volume |
| Taro Pharmaceutical |
( TARO | Quote | Chart | News | PowerRating) |
98 | 43.93 | 712,100 | 530,900 |
| Independence Community Bank |
( ICBC | Quote | Chart | News | PowerRating) |
88 | 24.33 | 588,000 | 649,500 |
Sectors leading the charge up were the
Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) tacking on 6.7%.
The Chemical Index
(
$CEX.X |
Quote |
Chart |
News |
PowerRating)
closing up 2.9%.
While the Interactive Week Internet Index
(
$IIX.X |
Quote |
Chart |
News |
PowerRating) gained 2.8%.
Closing higher by 2.3% was the
Insurance Index
(
$IUX.X |
Quote |
Chart |
News |
PowerRating).
The Gold and Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating)
closed relatively flat for the session.
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.