Monday’s Stock Watch
It was a down week for the
indexes, as low volume signaled no clear days of accumulation or
distribution on the NYSE, and the Nasdaq posted one day of accumulation. New
52-week lows held an edge over the highs, while Mark Boucher‘s
Top
RS and ER List and
Bottom RS and ER List have been biased to the bears.
Market strength has been in gold and silver stocks,
while weakness remains in the semiconductors.
This report turned out two breakouts for the week,
while all of our prior breakouts remain north of their buy points.
From Tuesday’s action:
Market breadth was mostly positive, with NYSE
advancing issues over declining issues by a ratio of 1.28, and down volume over
up volume by a 1.11 ratio. Nasdaq advancing issues over declining issues came
in at 1.22, and up volume beat down volume by a 1.30 ratio.
The Dow Jones Industrial Average
(
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) closed -0.79% at 8312.69. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed +0.32% at 889.81. The
Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed +0.91% at 1291.40.
1,523
1,743
Declining Issues
1,168
1,401
653,435,740
703,417,377
816,268,330
530,671,075
Total
Volume
1,487,157,970
1,247,566,249
Highs
13
27
58
108
Top sectors:
Internet
(
$ECM.X |
Quote |
Chart |
News |
PowerRating), +2.89%, biotechnology
(
$BTK.X |
Quote |
Chart |
News |
PowerRating),
+2.06%, computer hardware
(
$HWI.X |
Quote |
Chart |
News |
PowerRating), +2.03%, and utilities
(
$UTY.X |
Quote |
Chart |
News |
PowerRating),
+1.92%.
Losing sectors:
Networking
(
$NWX.X |
Quote |
Chart |
News |
PowerRating), -4.38%, airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating),
-3.35%, and telecoms
(
$IXTC.X |
Quote |
Chart |
News |
PowerRating), -2.45%.
Watch List Action:
New to our breakout list this week is International Game Technology
(
IGT |
Quote |
Chart |
News |
PowerRating) as
it hit its pivot buy point on 9/10 on 40% more than its average volume. The price has been
dropping every day since, though it’s a positive that volume has also been
dropping off. We want to see down moves on lower volume, and up moves on higher
volume.
Closing at its pivot buy point, Penn National Gaming
(
PENN |
Quote |
Chart |
News |
PowerRating) failed to
qualify as a breakout with volume only average. We’re looking for a valid
breakout with 40% more than average volume on this one.
So far our best-looking breakout is
Hovnanian Enterprises,
(
HOV |
Quote |
Chart |
News |
PowerRating) as it rose 3.52% Friday on above-average volume.
The stock is now forming a bullish flag, and with the heavy accumulation on its
breakout, this one appears to have a lot of institutional muscle behind it.
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) | 94 | 42.70 | +0.89 | 2,398,300 | 39.60 | 44.00 |
Alliant Techsystems | ( ATK | Quote | Chart | News | PowerRating) | 90 | 71.75 | -0.92 | 459,100 | 69.95 | 76.93 |
Coach Inc. | ( COH | Quote | Chart | News | PowerRating) | 96 | 28.98 | +0.93 | 1,106,200 | 28.35 | 30.12 |
Corinthian Colleges | ( COCO | Quote | Chart | News | PowerRating) | 97 | 36.80 | +0.85 | 831,500 | 34.69 | 38.00 |
Hovnanian Enterprises | ( HOV | Quote | Chart | News | PowerRating) | 98 | 39.15 | +1.33 | 562,200 | 33.56 | 39.80 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 89 | 65.90 | -0.31 | 956,500 | 66.70 | 68.50 |
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) | 83 | 44.90 | +0.27 | 679,200 | 48.36 |
Education Mgt. Co. | ( EDMC | Quote | Chart | News | PowerRating) | 85 | 41.14 | -0.06 | 322,400 | 43.19 |
Hilb Rogal Hamilton | ( HRH | Quote | Chart | News | PowerRating) | 95 | 44.75 | +0.75 | 177,800 | 45.08 |
Kohl’s Corporation | ( KSS | Quote | Chart | News | PowerRating) | 81 | 71.99 | +1.46 | 2,612,900 | 73.16 |
Mid-Atlantic Medical Services | ( MME | Quote | Chart | News | PowerRating) | 95 | 36.40 | +0.05 | 579,200 | 37.97 |
Annaly Mgt. Inc. | ( NLY | Quote | Chart | News | PowerRating) | 88 | 19.72 | +0.19 | 917,300 | 20.50 |
Penn National Gaming | ( PENN | Quote | Chart | News | PowerRating) | 96 | 20.12 | +1.28 | 324,100 | 20.12 |
Mid Atlantic Medical hit its pivot buy point this
past week, though there wasn’t enough volume to trigger a buy signal.
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 |
Bed Bath & Beyond | ( BBBY | Quote | Chart | News | PowerRating) | 82 | 34.59 | +1.09 | 4,630,700 |
Brown & Brown | ( BRO | Quote | Chart | News | PowerRating) | 73 | 28.65 | -0.20 | 348,400 |
Wellpoint Health Network | ( WLP | Quote | Chart | News | PowerRating) | 90 | 77.76 | +1.10 | 1,679,000 |
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).