Monday’s Stock Watch
Buyers left
their footprints for the week, as the major indexes posted modest
gains after hitting lows for the year. Volume on the NYSE accounted for two
distribution days and one accumulation day, and the Nasdaq made one distribution
day and two accumulation days. Beginning Tuesday we will be looking for follow
through on one of the major indexes in the form of a 2% gain on strong volume.
This type of follow through will give us indication of institutional support for
recent lows made.
Breadth indications were mostly
neutral for the week, as New 52-week Lows tapered off to near flat levels, and
New 52-week Highs remained light. Mark Boucher’s
Top
RS and ER List was also quiet, but the
Bottom RS and ER List was bearish with readings over 50. We’re looking for a
number over 20 for either list to give a bias for its respected direction.
It was a good week for the stocks on
our watch list as EXPD and APOL broke out. This market still has much to prove
to us before we can comfortably consider long candidates, but now we have a
start. We will be watching these candidates closely, and will use their progress
as an indication for strength in the overall market.
From Friday’s action:
Market breadth was mixed, with NYSE advancing issues over declining
issues by a ratio of 1.23, and up volume over down volume by a 1.09 ratio. Nasdaq declining issues over advancing issues came in
at 1.09, and down volume beat up volume by a 1.34 ratio.
Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed +0.48%
at 7,859.71. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) closed
+0.16%
at 833.26.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed
-0.51%
at 1,340.26.
1,661
1,510
Declining Issues
1,360
1,614
763,581,000
650,008,000
Declining Volume
693,957,000
906,828,000
Total
Volume
1,500,657,000
1,585,833,000
Highs
10
12
18
9
Watch List Action:
On the verge of triggering a buy signal, Expeditors International of Washington
(
EXPD |
Quote |
Chart |
News |
PowerRating) hit an all time high, though did not hit its pivot buy of 34.89. The
stock is looking good as it surged higher on volume over 70% its average. Watch
for a buy trigger on this one, though don’t forget we’re still in an environment
that has yet to prove itself friendly to breakouts.
Also breaking out, Apollo Group Inc.
(
APOL |
Quote |
Chart |
News |
PowerRating) hit an all time high and
triggered a buy on volume over 50% its average. The stock put in another high
volume day the day after, though gave up some ground. We’ll be putting this one
back to our "breakout" list.
Recent Breakouts
size=2>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.
| color=#ffffff size=2>Company Name | color=#ffffff size=2>Symbol | color=#ffffff size=2>12 Month RS | color=#ffffff size=2>Price | color=#ffffff size=2>Price Change | color=#ffffff size=2>Average Volume | Pivot | 52-Week High |
Coach Inc. | ( COH | Quote | Chart | News | PowerRating) | 93 | 36.98 | -0.35 | 1,070,100 | 28.35 | 35.70 |
Garmin Ltd. | ( GRMN | Quote | Chart | News | PowerRating) | 96 | 33.71 | +0.42 | 459,200 | 23.46 | 32.07 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 90 | 78.01 | -0.97 | 1,189,500 | 74.84 | 80.10 |
Stocks Forming a Handle
| color=#ffffff size=2>Company Name | color=#ffffff size=2>Symbol | color=#ffffff size=2>12 Month RS | color=#ffffff size=2>Price | color=#ffffff size=2>Price Change | color=#ffffff size=2>Average Volume | Pivot |
Apollo Group | ( APOL | Quote | Chart | News | PowerRating) | 93 | 47.84 | -0.17 | 1,696,200 | 46.89 |
CECO | ( CECO | Quote | Chart | News | PowerRating) | 88 | 48.00 | +0.46 | 770,200 | 48.07 |
Expeditors International of Washington | ( EXPD | Quote | Chart | News | PowerRating) | 85 | 34.74 | +0.49 | 768,400 | 34.54 |
UCBH Holdings | ( UCBH | Quote | Chart | News | PowerRating) | 81 | 42.05 | +0.16 | 177,100 | 45.20 |
Moving off the "handle" list and onto the
"breakout" list will be APOL and EXPD.
Stocks Building A Base
color=#ffffff size=2>Company Name | color=#ffffff size=2>Symbol | color=#ffffff size=2>12 Month RS | color=#ffffff size=2>Price | color=#ffffff size=2>Price Change | color=#ffffff size=2>Average Volume | Pivot |
None |
If you are new to the "IT" strategy, be sure to
take a look at our
intermediate-term online trading course.
Intermediate-Term Traders
Report is posted on
Tuesdays and Fridays. For other intermediate-term commentary, be sure to read
Mark Boucher (Fridays),
Tim Truebenbach (Tuesdays and Thursdays), and
Gary Kaltbaum (Mondays and Thursdays).