Monday’s Stock Watch
The major indexes closed
the week well off their highs, as Nasdaq and NYSE volume put together two
accumulation days apiece. Market breadth remains uninspiring, with
new 52-week highs unable to produce a solid edge over the lows. On a positive
note, we are not seeing acceleration on the lows list. Also, Mark Boucher‘s
Top
RS and ER List has yet to give us consistent bullish reading of over
20 per day. Similar to the 52-week lows list, the
Bottom RS and ER List is relatively quiet.
From our watch lists, we saw one attempted breakout,
and one elimination due to a drop below the pivot buy point. The overall market
may very well pull back in here, and if it does, we’d like to see it occur on
lighter volume as was the case this past week. If this market gains momentum to the
long side, we should be able to select more top stocks with excellent
fundamental and technical qualities for our list. Until then, the search goes
on.
From Tuesday’s action:
Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 1.45, and down volume over
up volume by a 2.96 ratio. Nasdaq declining issues over advancing issues came in
at 1.31, and down volume beat up volume by a 2.54 ratio.
Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed –0.57%
at 8536.99. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed -0.87% at
894.73.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed -1.27% at
1,359.21.
1,221
1,413
Declining Issues
1,814
1,827
348,668,000
471,507,000
1,039,018,000
1,106,941,000
Total
Volume
1,398,928,000
1,591,925,000
Highs
6
17
23
8
Top sectors:
Short-term: Internet, Telecoms, Software,
Computer Hardware.
Long-term: Gold, Defense, Consumer.
Watch List Action:
Attempting to break out Thursday, Chicos FAS
(
CHS |
Quote |
Chart |
News |
PowerRating) hit its pivot buy point
of 21.19, though fell just short of the 140% of its daily average volume needed
to qualify a buy. As you can see, the stock sold off Friday on heavy volume. This
adds to the long list of failed breakouts in this bear market. If the stock can
form another handle, we’ll put it back on the list.
Also coming off our list is Wellpoint Networks
(
WLP |
Quote |
Chart |
News |
PowerRating) as it fell more than 8% below its pivot buy point. The heavy distribution in recent weeks gave
warning to this. Sayonara.
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 |
Apollo Group | ( APOL | Quote | Chart | News | PowerRating) | 91 | 41.78 | +0.27 | 2,671,100 | 39.60 | 46.15 |
Coach Inc. | ( COH | Quote | Chart | News | PowerRating) | 95 | 29.74 | -0.86 | 989,400 | 29.80 | 33.09 |
Hovnanian Enterprises | ( HOV | Quote | Chart | News | PowerRating) | 97 | 32.70 | -1.20 | 859,200 | 33.56 | 40.56 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 91 | 75.99 | -0.29 | 1,068,400 | 75.47 | 78.40 |
Wellpoint Health Network | ( WLP | Quote | Chart | News | PowerRating) | 87 | 74.04 | 4.47 | 1,587,300 | 79.05 | 85.63 |
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 |
Commerce Bancorp. | ( CBH | Quote | Chart | News | PowerRating) | 72 | 43.39 | -0.25 | 752,500 | 47.80 |
Chicos FAS | ( CHS | Quote | Chart | News | PowerRating) | 96 | 20.45 | -0.80 | 1,298,000 | 21.84 |
Ross Stores Inc. | ( ROST | Quote | Chart | News | PowerRating) | 90 | 42.98 | +0.41 | 1,093,600 | 45.59 |
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 |
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com
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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).