Here Are Tuesday’s Names
As
we updated our timing composites this weekend they are
still not giving us any upside confirmation. Breadth has not improved and the markets have not shown any
clear signs of leadership yet. We will continue to be cautious in our trading (if
we even attempt to trade at all). When we look at all the major sectors we can
notice that all have significant levels of resistance ahead of them as they
continue to trade below their 200-day moving averages.
The Nasdaq Composite
closed lower by 3.92% on lighter volume as it tested the support of its 50-day
moving average. A hold above this level is key to the psychology of the markets;
if we close below this level on significantly higher volume, we could expect to
test our lows once again.
Concord EFS
(
CEFT |
Quote |
Chart |
News |
PowerRating)
breached its 50-day moving average and closed well below the average. It should
be noted that the Financial Services group, which CEFT belongs to, is rather weak,
which could be the reason why it broke down.
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 | 35.58 | 901,800 | 199,800 |
| PEC Solutions | ( PECS | Quote | Chart | News | PowerRating) |
95 | 24.90 | 293.300 | 144,000 |
| THQI Inc. | ( THQI | Quote | Chart | News | PowerRating) |
93 | 51.71 | 1,193,000 | 838,400 |
Stocks forming a
Handle
| Company Name |
Symbol | Relative Strength |
Price | Average Volume |
Today’s Volume |
| Pharmaceutical Resources |
( PRX | Quote | Chart | News | PowerRating) |
99 | 34.70 | 578,300 | 379,400 |
| Taro Pharmaceutical |
( TARO | Quote | Chart | News | PowerRating) |
98 | 43.69 | 712,100 | 248,300 |
| Independence Community Bank |
( ICBC | Quote | Chart | News | PowerRating) |
88 | 23.85 | 588,000 | 209,100 |
Sectors were mostly in the
red, except for the Gold and Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) which edged higher
0.1%.
Leading the broader markets lower for
the session was the Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) which slid 6.9%.
The GSTI Internet Index
(
$GIN.X |
Quote |
Chart |
News |
PowerRating)
fell 5.5% and following close behind was the Interactive Week Internet Index
(
$IIX.X |
Quote |
Chart |
News |
PowerRating)
which lost 5.4%.
Also putting in a weak show was the
Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) which closed 3.8% lower.
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.