Monday’s Stock Watch
Top down, the major indexes had a losing month, a
losing week, and now we’ve lost two more of our “IT” selections. For the
week, the NYSE put in one clear accumulation day, while the Nasdaq had a day
apiece of accumulation and distribution. From the charts, the Dow and S&P 500
are trading just below their 50% retracements of the October low to the December
high, while the Nasdaq closed the week just above this mark.
It has been a long time since we’ve seen something
news-wise to inspire a rally. Earnings remain a disappointment, while
geopolitical tension lingers. Uncertainty of what a war with Iraq will bring has
infected the business world, with many companies coming forward now cautious for
the first quarter. Until key questions are answered, it appears nobody wants to
be a buyer.
Market breadth bias has been negative, with New
52-week Lows holding an edge over the lows. Mark Boucher‘s
Top
RS and ER List has been running low, while the
Bottom RS and ER List posted a couple of bearish days with readings over 20.
From Friday’s action:
Market breadth was mostly positive, with NYSE
advancing issues over declining issues by a ratio of 2.52, and up volume over
down volume by a 2.89 ratio. Nasdaq advancing issues over declining issues came
in at 1.35, and down volume beat up volume by a 1.54 ratio.
The Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed +1.36%
at 8053.81. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed 1.31% at
855.70. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed
-0.10% at
1,320.91.
2,180
1,861
Declining Issues
883
1,385
1,079,256,000
625,307,000
387,740,000
932,642,000
Total
Volume
1,476,853,000
346,915,000
Highs
13
13
18
16
Top sectors:
Fiber Optics, Gold and Silver, Internet, and
Computer Security.
Watch List Action:
Holding above its 50-day moving average, Garmin Ltd.
(
GRMN |
Quote |
Chart |
News |
PowerRating) posted an
accumulation day on Wednesday. The stock has posted three heavy distribution
days in the last month in a sign of institutional selling pressure. On a
positive note, this stock has never traded at these levels, so we won’t see any
overhead resistance (buyers at higher prices who sell once the stock rebounds to
those levels).
We’ve had Expedia
(
EPE |
Quote |
Chart |
News |
PowerRating) listed on our “handles” list for some time. Unfortunately,
though, the stock gradually slid south and is now trading below its
200-day moving average with two distribution days for the week and a RS
of 65. Sayonara. This is a far cry from breakout material.
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) | 89 | 31.95 | -0.27 | 995,000 | 28.35 | 35.70 |
Garmin Ltd. | ( GRMN | Quote | Chart | News | PowerRating) | 94 | 29.37 | +0.30 | 501,600 | 23.46 | 31.35 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 87 | 78.87 | +0.88 | 1,053,600 | 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) | 65 | 59.95 | +0.12 | 2,432,900 | 78.72 |
Apollo Group | ( APOL | Quote | Chart | News | PowerRating) | 87 | 44.46 | +0.37 | 1,901,400 | 46.57 |
Expedia will be coming off the list.
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
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).