Monday’s Stock Watch
The major averages failed
to hold gains made earlier in the day, as above-average volume held price action
in negative territory at the close. The leading sectors of the day
were biotechnology, telecoms, computer hardware, and healthcare, while
utilities, retail, banks, and oil issues were hit hardest. New 52-week highs
over-shadowed the lows, with drugs, electronics, telecommunications, and
diversified services dominating downside action. There was one positive stock on
our watch list.
Market breadth was mostly negative, with NYSE
declining issues over advancing issues by a ratio of 1.43, and down volume over
up volume by a 1.15 ratio. Nasdaq declining issues over advancing issues came in
at 1.16, and up volume beat down volume by a 1.30 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed down 1.32% at 8684.53. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed down 0.64% at 921.40.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed down 0.06%
at 1373.56.
1,252
1,552
Declining Issues
1,874
1,765
825,091,300
925,093,700
1,030,301,080
731,237,600
Total
Volume
1,864,647,150
1,677,804,500
Highs
32
75
182
102
Weekly Perspective:
It was another downer for the major
indexes, with the Dow leading, losing a whopping 694.97 points for a 7.41%
thrashing. The S&P 500 dropped 67.64 points for a 6.83% loss, and the Nasdaq declined 74.86 points for a 5.16% decrease. For the past three weeks, the
NYSE has made two accumulation days and four distribution days, with the Nasdaq
making four accumulation days and two distribution days (discounting volume
action after the holiday’s abbreviated session).
Despite relatively healthy economic
news, the markets are riddled with fears of accounting scandals and terrorism.
Earnings announcements will come into season next week, and will begin to supply
solid evidence of the health of American businesses (given we can trust the
numbers.)
As mentioned several times in
this report, and by IT columnists on the site, this is a horrible market to go
long in. Until we see successful breakouts from stocks possessing the strongest of fundamental and
technical factors, the setups listed here are considered to be used as an
indication of overall market health.
Top sectors:
Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), up 2.52% at
303.76.
North American Telecoms Index
(
$GIP.X |
Quote |
Chart |
News |
PowerRating), up
2.18% at
402.35. .
Losing sectors:
Utility Secor Index
(
$UTY.X |
Quote |
Chart |
News |
PowerRating), down 3.89% at
272.56.
Retail HOLDRs
(
RTH |
Quote |
Chart |
News |
PowerRating), down 3.09% at
81.08.
Sectors with Most New 52-Week Highs (10 or more):
None
Watch List Action:
Apollo Group
(
APOL |
Quote |
Chart |
News |
PowerRating) dropped another 1.12% on below average volume. If
the stock comes down over 10% from the high of its handle, we will remove
it from the list. Today’s low was a little over 7% from the high of the
handle.
Christopher & Banks
(
CHBS |
Quote |
Chart |
News |
PowerRating) fell 2.94% on below-average volume. The stock
closed below its 50-day moving average today, though remains in an upward
trending channel. The stock has also made five accumulation days and three
distribution days in the past three weeks. We’ve a good run with this one. Watch
the price action around the 50-day moving average and be on the lookout for a
channel line break.
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.
Christopher & Banks
(
CHBS |
Quote |
Chart |
News |
PowerRating), down 2.94% on
below-average volume.
| 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 |
Christopher & Banks | ( CHBS | Quote | Chart | News | PowerRating) | 94 | 39.51 | – 1.20 | 392,300 | 33.60 | 42.45 |
Stocks Forming a Handle
Apollo Group Inc.
(
APOL |
Quote |
Chart |
News |
PowerRating), down 1.13% size=2>
on below-average volume.
| 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 Inc. | ( APOL | Quote | Chart | News | PowerRating) | 84 | 37.46 | – 0.43 | 2,418,400 | 40.08 |
Stocks Building A Base
Coach Inc.
(
COH |
Quote |
Chart |
News |
PowerRating), down 2.19%
on below-average volume.
DR Horton Inc.
(
DHI |
Quote |
Chart |
News |
PowerRating), down 2.61% size=2>
on average
volume.
Penn National Gaming
(
PENN |
Quote |
Chart |
News |
PowerRating), down 3.48% size=2>
on light
volume.
Winnebago Industries
(
WGO |
Quote |
Chart |
News |
PowerRating), up 1.20%
on below-average volume.
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 |
Coach Inc. | ( COH | Quote | Chart | News | PowerRating) | 79 | 22.70 | – 0.51 | 1,216,200 |
DR Horton Inc. | ( DHI | Quote | Chart | News | PowerRating) | 83 | 23.13 | – 0.62 | 1,332,700 |
Penn National Gaming | ( PENN | Quote | Chart | News | PowerRating) | 85 | 15.80 | – 0.57 | 546,000 |
Winnebago Industries | ( WGO | Quote | Chart | News | PowerRating) | 86 | 43.01 | + 0.51 | 206,700 |
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com
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