Monday’s Stock Watch


After Monday’s huge turn
around, the question now facing market speculators
is whether or not
it marked a bottom of some sort. At this point we’d like to see a rally occur on
one of the major indexes with a gain of at least 2% on heavy volume. Follow
through of this sort will indicate that institutional players are willing to
step up and support this market. As always, it’s a wait and see game.



The Semiconductor Index’s
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)
massive
sell off Thursday was a red flag, as this sector very often provides leadership
for rallies. The index broke key support on its weekly chart that now gives it
new support around 200. As

Dave Landry
asked in his Thursday column, “who’s next”. This market has a
lot to prove before intermediate-term traders think about buying.



For the past three weeks, the NYSE has made three
accumulation days and five distribution days, while the Nasdaq has scored three
accumulation days and three distribution days.

Mark Boucher
‘s market breadth indicators showed a huge increase in lows,
with four day’s showing over 100. Any number above 20 is considered bearish.



Due to market conditions, this report no longer has
a single stock that qualifies for the report. Hopefully this will soon change as
we continue to search.



Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 1.36, and up volume over
down volume by a 1.14 ratio. Nasdaq advancing issues over declining issues came
in at 1.23, and up volume beat down volume by a 1.44 ratio.




The Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed up 0.95% at 8264.67. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)

closed up 1.68% at 852.82.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating)
closed up 1.77% at 1262.07
.





 




cellPadding=0 width=”70%” border=1 height=”186″>

































  NYSE size=2>NASDAQ
Advancing Issues
 1,821

 1,817

Declining  Issues

 1,341

 1,483
Advancing Volume
 1,068,489,990

 839,398,959
Declining Volume

 940,812,200

 582,576,593

Total
Volume

 2,021,155,980

 1,434,106,215
New 52-week
Highs

 22

 56
New 52-week Lows
  201

 242

Top sectors:


S&P Insurance Index
(
$IUX.X |
Quote |
Chart |
News |
PowerRating)
, up 5.03% at 251.51, and the


GSTI Internet Index
(
$GIN.X |
Quote |
Chart |
News |
PowerRating)
, up 4.27% at 61.89.

Losing sectors:



Gold and Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating)
, down
6.32% at 55.73.


North American Telecoms Index
(
$XTC.X |
Quote |
Chart |
News |
PowerRating)
,
down 4.72% at 316.34
.

Sectors with Most New 52-Week Highs (10 or more):

None

Watch List Action:


None



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

None

 

 

 

 

 

 

 

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

None

 

 

 

 

 

 

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

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).