Monday’s Stock Watch
The broader
markets picked
themselves up after yesterday’s selling, and closed the day with
modest gains. This pre-holiday session had better than average volume as few
sectors closed in the red. The stocks on our watch list were mixed, with key
distribution and accumulation days made.
Market breadth was positive, with
NYSE advancing issues over declining issues by a ratio of 1.8, and up volume
over down volume by a ratio of 1.7. Nasdaq advancing issues over declining
issues came in at 1.5, and up volume over down volume came in at a nice 2 to1
ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed up
0.50% to
10,035.34. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed up
0.49% to
1,145.49.
The Nasdaq [$COMPQ |$COMPQ] closed up
1.42% to
1,945.81.
| NYSE | NASDAQ | |
| Advancing Issues | 2,058 |
2,249 |
| Declining Issues | 1,104 |
1,444 |
| Advancing Volume |
1,067,642,000 |
1,473,340,000 |
| Declining Volume |
613,018,000 |
661,485,000 |
| Total Volume | 1,694,506,000 |
2,190,168,000 |
| New 52-week Highs | 32 | 23 |
| New 52-week Lows | 7 | 0 |
| New 52-week Highs for Week |
151 | 137 |
| New 52-week Lows for Week |
35 | 4 |
Weekly Perspective:
This past week was a tale of two
markets, as technology sold off and blue chips moved forward. The Dow finished
the week up 224.19 points for a 2% gain, the S&P 500 finished up 21.82 for a
1.9% gain, and the Nasdaq finished down 7.34 points for a 0.03% loss. Earnings
warnings from powerhouse tech firms Juniper
(
JNPR |
Quote |
Chart |
News |
PowerRating) and Micron Technology
(
MU |
Quote |
Chart |
News |
PowerRating)
had some
investors rethinking the recent run-up in tech stocks, as the Nasdaq fell below
its upward trend line. The question on everyone’s mind is: are we going to
experience a pull back, or is this just the beginning of a new leg down in the
bear market? And the answer is: nobody knows. We’ve seen some indications of
institutional endorsement for this market, though this week’s two days of
distribution on the Nasdaq stand out like a sore thumb. We will take the
market day by day, and measure as we go.
Sectors with new highs this week had
familiar names in the medical appliances, business services, and semiconductors.
Coming on to the scene were stocks in regional banks, home
furnishings, information technology, and REITs.
Top sectors:
Disk Drive Index
(
$DDD.X |
Quote |
Chart |
News |
PowerRating), up 3.62% at 104.15
The Street.com Internet Index
(
$XNG.X |
Quote |
Chart |
News |
PowerRating) up
2.87% at 185.49. 151.92.
Losing sectors:
S&P Chemical Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating)
down 1.80% to 412.27
Forrest & Paper Products Sector Index (PHLX)
(
FPP.X |
Quote |
Chart |
News |
PowerRating)
down 3.92% to 554.02.
Sectors With New Highs:
Business Services – 6
Home Furnishing – 4
Medical – 5
Mortgage Investment – 3
Regional Banks – 4
REITS – 3
Residential Construction – 3
Watch List Action
Krispy Kreme
(
KKD |
Quote |
Chart |
News |
PowerRating) paused today with a loss of 0.67% on below-average
volume. After two strong days of buying pressure this stock is resting nicely
above its breakout point. From looking at the base of the pattern, we can see
some significant selling from earlier this month. The stock’s valuation has long
been argued on Wall Street, and many brokerages no longer offer shares to sell
short. We will continue to monitor this one and see if it has what it takes to
become a leader in this market.
THQ Inc
(
THQI |
Quote |
Chart |
News |
PowerRating) was our biggest gainer on the day, refusing to sink
much further below its breakout made in late October. This company, which
develops, publishes, and distributes entertainment software for various home
video platforms is on our list to have strong earnings growth for the last two
quarters, at 207% and 133% respectively, but has been inconsistent for the past
five years. Ideally, we want our candidates to have consistent growth.
Recent Breakouts
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.
American Healthways Inc
(
AMHC |
Quote |
Chart |
News |
PowerRating), up 4.82% on over four times average volume.
Copart Inc.
(
CPRT |
Quote |
Chart |
News |
PowerRating), down 0.10% on almost
twice average
volume for a distribution day.
Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating), up 2.20% on below average volume.
Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating), up 1.44% on average volume.
MTR Gaming Group
(
MNTG |
Quote |
Chart |
News |
PowerRating), up 1.36% on
above-average
volume.
Nvidia Corp.
(
NVDA |
Quote |
Chart |
News |
PowerRating), up 4.32% on half
its average volume.
Panera Bread Co.
(
PNRA |
Quote |
Chart |
News |
PowerRating), up 6.53% on average
volume for an accumulation day.
PEC Solutions
(
PECS |
Quote |
Chart |
News |
PowerRating), down 1.83% on below-average volume.
THQ Inc.
(
THQI |
Quote |
Chart |
News |
PowerRating), down 7.26% on above-average volume for an accumulation day.
Company Name |
Symbol |
12 Month RS |
Price |
Price Change |
Average Volume |
| American Healthways Inc. | ( AMHC | Quote | Chart | News | PowerRating) |
98 | 30.40 | + 1.40 | 277,300 |
| Copart Inc. | ( CPRT | Quote | Chart | News | PowerRating) |
93 | 36.31 | – 0.04 | 694,300 |
| Ebay | ( EBAY | Quote | Chart | News | PowerRating) |
89 | 64.99 | + 1.40 | 8,470,900 |
| Genesis Microchip | ( GNSS | Quote | Chart | News | PowerRating) |
99 | 65.84 | + 0.94 | 2,712,200 |
| Krispy Kreme Doughnuts | ( KKD | Quote | Chart | News | PowerRating) |
95 | 43.95 | – 0.03 | 875,900 |
| MTR Gaming Group | ( MNTG | Quote | Chart | News | PowerRating) |
97 | 14.90 | + 0.20 | 473,800 |
| Nvidia Corp. | ( NVDA | Quote | Chart | News | PowerRating) |
97 | 64.58 | + 2.68 | 5,565,200 |
| Panera Bread Co. | ( PNRA | Quote | Chart | News | PowerRating) |
95 | 53.81 | + 3.30 | 274,100 |
| PEC Solutions | ( PECS | Quote | Chart | News | PowerRating) |
99 | 33.71 | – 0.63 | 597,400 |
| THQ Inc. | ( THQI | Quote | Chart | News | PowerRating) |
89 | 52.99 | + 3.59 | ,647,600 |
Stocks Forming a Handle
Career Education Corp.
(
CECO |
Quote |
Chart |
News |
PowerRating), up 3.46% on
below-average volume for an accumulation day.
Direct Focus Inc.
(
DFXI |
Quote |
Chart |
News |
PowerRating), down 2.96% on
above-average volume for a distribution day.
Integra LifeSciences
(
IART |
Quote |
Chart |
News |
PowerRating), up 4.01% on below-average
volume for an accumulation day.
Company Name |
Symbol |
12 Month RS |
Price |
Price Change |
Average Volume |
| Career Education Corp. | ( CECO | Quote | Chart | News | PowerRating) |
89 | 35.54 | + 1.19 | 768,600 |
| Direct Focus Inc. | ( DFXI | Quote | Chart | News | PowerRating) |
93 | 29.50 | – 0.90 | 684,600 |
| Integra Lifesciences | ( IART | Quote | Chart | News | PowerRating) |
90 | 27.98 | + 1.08 | 309,100 |
Stocks Building A Base
Company Name |
Symbol |
12 Month RS |
Price |
Price Change |
Average Volume |
| None |