Monday’s Stock Watch
The major indexes managed to regain their 50-day
moving averages for the week, with the New Year holiday keeping volume light.
Thursday marked accumulation on the exchanges, which
Kevin Haggerty
attested to in his most recent column. The 50-day moving averages are watched
closely by institutions, and will be pivotal for future direction. Current
tensions with Iraq and North Korea are undoubtedly keeping money sidelined,
which may be a condition that lingers indefinitely for some time. In order to
get bullish we need to see more accumulation.
In the breadth department, New 52-week Highs are
holding a slight edge over an nearly non-existent lows list. Meanwhile, Mark Boucher‘s
Top
RS and ER List remains neutral for the week, with only Monday producing more
than the 20 needed for a bullish indication, as the
Bottom RS and ER List remains quiet.
Stocks on our shrinking watch lists held ground for
the week, though GRMN once again proved itself a star. Research for new names to
add to this report continues, though only a few qualify for our top fundamental
and technical criteria. And that’s just the way it goes for IT trading, if
there’s nothing to do, don’t do it. By keeping informed, and in tune with the
markets, we’ll be ready when the time is right.
From Friday’s action:
Market breadth was mixed, with NYSE
advancing issues over declining issues by a ratio of 1.18, and down volume over
up volume by a 1.10 ratio. Nasdaq declining issues over advancing issues came
in at 1.08, and up volume beat down volume by a 1.55 ratio.
Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed -0.06%
at 8,601.69. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed -0.04% at
908.60.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed +0.15% at
1,387.02.
1,611
1,548
Declining Issues
1,443
1,666
470,702,000
704,954,000
609,489,000
413,021,000
Total
Volume
1,105,955,000
1,149,465,000
Highs
22
16
2
1
Top sectors:
Gold, Defense, Consumer, Defensive.
Watch List Action:
Following up on our new star, Garmin Ltd
(
GRMN |
Quote |
Chart |
News |
PowerRating) put in another stellar day
as it rose 2.76% under accumulation. The nice thing about this breakout is
there is absolutely no overhead resistance. In other words, no one is waiting to
sell big chunks of the stock after getting burned, because the stock has never
traded this high before.
Attempting to breakout today, Apollo Group
(
APOL |
Quote |
Chart |
News |
PowerRating) hit its pivot buy point
of 45.60, though failed to produce volume over 40% of its average needed to
trigger a buy. Big volume means institutional support, and without it we’re
better off staying away.
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) | 94 | 33.26 | -0.47 | 872,300 | 29.80 | 35.70 |
Garmin Ltd. | ( GRMN | Quote | Chart | News | PowerRating) | 96 | 30.82 | +0.84 | 404,400 | 23.46 | 31.35 |
Hovnanian Enterprises | ( HOV | Quote | Chart | News | PowerRating) | 85 | 32.86 | -0.92 | 597,000 | 33.56 | 40.56 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 88 | 77.19 | -0.96 | 869,800 | 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) | 95 | 70.90 | +0.24 | 2,432,900 | 78.72 |
Apollo Group | ( APOL | Quote | Chart | News | PowerRating) | 89 | 45.77 | +0.51 | 2,258,700 | 45.60 |
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 | Â | Â | Â | Â | Â | Â |
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).