Monday’s Stock Watch




The major averages made
progress to the upside for the week,
as overall light volume gave the
NYSE one day of accumulation and one day of distribution, while the Nasdaq had
a day of distribution. Overall lack of volume has been attributed to a general lack
of commitment from buyers and sellers as concerns of what a war with Iraq will
bring, persists. We will be looking for follow-through for this recent rally
early next week.



Market breadth was neutral for the week, with New
52-week Highs and Lows producing relatively low numbers.
Mark Boucher’s
Top
RS and ER List
and

Bottom RS and ER List
were both neutral with readings under 20.



Stocks on our watch list are looking good. We have
added three new candidates to our “handles” list, as select stocks on our
“recent breakouts” list appear poised for additional breakouts. We are still far
from buying conditions, though it is encouraging to be able to add new stocks.
The search goes on for stocks meeting our strict fundamental and technical
criteria.



From Friday’s action:



Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 2.37, and up volume over
down volume by a 2.58 ratio. Nasdaq advancing issues over declining issues came
in at 1.69, and up volume beat down volume by a 2.00 ratio.




Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)

closed
+1.30%
at 8,018.11. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)

closed
+1.32% at
848.17.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating)
closed +1.33
% at
1,348.99.







cellPadding=0 width=”70%” border=1 height=”185″>

































NYSE size=2>NASDAQ
Advancing Issues
2,161

1,965

Declining Issues

888

1,204
Advancing Volume
956,181,000

797,747,000
Declining Volume

377,309,000

461,213,000

Total
Volume

1,346,248,000

1,327,596,000
New 52-week
Highs

10

6
New 52-week Lows
9

10

Top sectors:

Gold and Silver, Internet, Software,
and Drugs.

Watch List Action:


Long standing on our breakout list, Coach Inc.
(
COH |
Quote |
Chart |
News |
PowerRating)
is continuing along its
four-month base. We could see another breakout in here, though as stated before,
this is not an ideal market for longs. Another point of weakness is the fact
that the retail sector is not performing as well as when this stock first broke
out for us.





New to our handles list, Expeditors International of Washington Inc.
(
EXPD |
Quote |
Chart |
News |
PowerRating)

is a provider of global logistics services. The company gives its customers an
international network for the movement and positioning of goods through air and
ocean freight. The company meets all of our top fundamental requirements, has
good earnings and revenue momentum, and is set up in a base. The weekly chart
shows a strong ascending triangle. We will look for a breakout 10 cents above
the high made 12/23, though the stock may very well pull back as it flirts with
its highs. We would rather see more accumulation along the right side of its
base, though distribution does not seem to be a concern here. As with all
breakouts, if the volume doesn’t show up, it’s not a buy signal.





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)

88

33.25

+1.47

991,100

28.35

35.70

Garmin Ltd.


(
GRMN |
Quote |
Chart |
News |
PowerRating)

97

33.89

+3.02

489,500

23.46

32.07

International Game Technology


(
IGT |
Quote |
Chart |
News |
PowerRating)

79

76.30

+0.43

1,121,100

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)

86

45.24

+0.51

1,955,600

45.60

CECO


(
CECO |
Quote |
Chart |
News |
PowerRating)

84

46.84

+1.28

882,100

48.07

Expeditors International of Washington


(
EXPD |
Quote |
Chart |
News |
PowerRating)

85

34.01

+1.51

909,300

34.54

UCBH Holdings


(
UCBH |
Quote |
Chart |
News |
PowerRating)

80

42.60

-0.31

181,300

45.20

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







Daniel Beighley


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).