Here’s Monday’s Names…
The
broader markets closed mixed for the week with the Dow Jones
Industrial closing higher 0.8%, while the Nasdaq Composite closed fractionally
lower by 0.3%. Volume was moderate, however, it was lower than that of the prior session.
In addition, the composite closed above its 50-day average for the week, two
facts that help the psyche of traders in the markets. It should be noted (once
again) that we be cognizant of the how breadth and leadership have not shown us
the green light, so caution is still warranted.
Yesterday in this column we mentioned PEC Solutions
(
PECS |
Quote |
Chart |
News |
PowerRating)
which is forming a handle. In today’s session after a two-day pullback, we had PECS
moving up to test its pivot point and breaching it slightly. However, volume was
not there.
Financial services
company, Concord EFS
(
CEFT |
Quote |
Chart |
News |
PowerRating) experienced distribution in the session, closing
at or slightly below its 20-period moving average. Further breakdown of the
stock below its 50-day moving average would warrant us taking the stock off our
watch list.
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 | 36.24 | 901,800 | 383,400 |
| Concord EFT |
( CEFT | Quote | Chart | News | PowerRating) |
86 | 27.31 | 5,791,000 | 7,899,400 |
| PEC Solutions | ( PECS | Quote | Chart | News | PowerRating) |
95 | 24.18 | 293.300 | 512,000 |
| THQI Inc. | ( THQI | Quote | Chart | News | PowerRating) |
93 | 52.32 | 1,193,000 | 1,244,200 |
Stocks forming a
Handle
| Company Name |
Symbol | Relative Strength |
Price | Average Volume |
Today’s Volume |
| Pharmaceutical Resources |
( PRX | Quote | Chart | News | PowerRating) |
99 | 33.91 | 578,300 | 625,100 |
| Taro Pharmaceutical |
( TARO | Quote | Chart | News | PowerRating) |
98 | 43.71 | 712,100 | 756,400 |
| Independence Community Bank |
( ICBC | Quote | Chart | News | PowerRating) |
88 | 24.35 | 588,000 | 709,000 |
Sectors moving higher in the session
were led by Oil Services Index
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) which gained 4.6%.
The Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating)
put on a nice show, moving higher 3.2%.
And the Oil Index
(
$XOI.X |
Quote |
Chart |
News |
PowerRating)
tacked on 3.1%.
Lagging in the session was the GSTI
Internet Index
(
$GIN.X |
Quote |
Chart |
News |
PowerRating), which fell 3.5%.
The Interactive Week Internet Index
(
$IIX.X |
Quote |
Chart |
News |
PowerRating)
slid 1.2%.
And the Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)
lost 0.8%.
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.