Monday’s Stock Watch
The bears got the better of
the indexes for the week, as light volume moved the Dow and S&P 500
to their 50-day moving averages, and the Nasdaq just above this mark. We can
perceive it as a positive that these down moves are occurring on lighter volume,
though December is notorious for light activity, and current tensions with Iraq
are bound to keep players side-lined.
Despite the downside, market breadth remained
neutral for the week. New 52-week highs and lows are both quiet, and Mark Boucher‘s
Top
RS and ER List holds a very slight edge over the nearly non-existent
Bottom RS and ER List, though did not produce the 20+ readings to be
considered bullish.
Unfortunately, we have had to remove a couple of
selections from our shrinking watch lists. Blame it on the market, because
qualified candidates meeting our superior technical and fundamental requirements
are nowhere to be found. So we wait. There’s no reason to jump in and test this
environment, let the market work for you.
From Friday’s action:
Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 1.94, and down volume over
up volume by a 2.64 ratio. Nasdaq declining issues over advancing issues came in
at 2.22, and down volume beat up volume by a 7.37 ratio.
Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed -1.22%
at 8,433.85. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed -1.33% at
889.50.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed -2.64% at
1,362.60.
1,020
1,046
Declining Issues
2,024
2,277
341,852,000
160,757,000
872,376,000
1,192,944,000
Total
Volume
1,231,385,000
1,362,055,000
Highs
11
11
11
5
Top sectors:
Gold, Defense, Consumer, Leisure.
Watch List Action:
Representing our strongest breakout, International Game Technology
(
IGT |
Quote |
Chart |
News |
PowerRating)
posted two days of distribution for the week. This computerized gaming
manufacturer broke out on Sept. 10 from a six-month base, and gave us just over
20% at its recent high. The stock closed below its 50-day moving
average Friday.
Continuing to trace out its handle, Garmin Ltd.
(
GRMN |
Quote |
Chart |
News |
PowerRating) posted a nice day of
accumulation on 12/11. The stock is very strong as it trades well above its
major moving averages.
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 | 32.50 | -0.74 | 958,500 | 29.80 | 35.70 |
Garmin Ltd. | ( GRMN | Quote | Chart | News | PowerRating) | 87 | 24.22 | -0.78 | 262,700 | 23.46 | 25.80 |
Hovnanian Enterprises | ( HOV | Quote | Chart | News | PowerRating) | 86 | 31.88 | +0.14 | 771,100 | 33.56 | 40.56 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 88 | 73.12 | -2.88 | 989,900 | 66.70 | 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 |
Expedia | ( EXPE | Quote | Chart | News | PowerRating) | 94 | 67.39 | -3.88 | 2,854,400 | 78.72 |
Ross Stores Inc. | ( ROST | Quote | Chart | News | PowerRating) | 87 | 44.52 | -0.07 | 1,075,200 | 47.34 |
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 |
Apollo Group | ( APOL | Quote | Chart | News | PowerRating) | 84 | 40.00 | -1.04 | 2,494,900 | 44.46 |
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com
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).