Here’s Thursday’s Names…

The Naz
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed up again on
decent volume after touching the 50 day moving average.
The index closed at 1,775, up 43.93 points or 2.54%.
Volume increased almost 19% to 2.25 billion shares, recording the third
accumulation day against one distribution day in the last 10 trading days.
From our Market Stats page, advancing issues led declines 2,158 to 1,409
and up volume beat down volume 1,694 million shares to 537 million shares on the
Nasdaq. The new highs list versus new
lows has a new look today as 22 Nasdaq issues hit new highs versus no new lows.
Take a look at the Nasdaq 52-week highs and the NYSE 52-week new highs
lists to view the charts of those issues hitting new high ground.
Medical companies are being joined by a few technology companies.

From our watch list, we
had further constructive action from Taro Pharmaceutical
(
TARO |
Quote |
Chart |
News |
PowerRating) as it launched
almost 9% on well above average volume. The
generic drug maker is bucking the trend in the strong group that has taken some
hits this week. Others in the group
that we have been watching, including Barr Labs
(
BRL |
Quote |
Chart |
News |
PowerRating) and Pharmaceutical
Resources
(
PRX |
Quote |
Chart |
News |
PowerRating) have been heavily distributed just as they were approaching the
top of their bases.


 

We’re adding a couple of
new names to our watch list. THQI
(
THQI |
Quote |
Chart |
News |
PowerRating)
of the multimedia and software graphics group moves up the right side of its
base. The company has an RS of 93
and EPS growth of 133% in the last quarter. PEC
Solutions Inc
(
PECS |
Quote |
Chart |
News |
PowerRating), a technology services firm, is forming a handle to go with
its 13 week cup. The daily ranges
in the handle are a bit wide so far. The
company has generated strong revenue growth (+60%) and EPS growth (+40%).
RS is well over 90 and hitting new high ground.
 

Stocks Building
A Base With A Minimum Relative Strength of 80.

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.