Monday’s Stock Watch
The markets
gapped lower off the open due to a profit warning from Intel, though
managed to stage a comeback that regained most of the losses. Heavy volume
signaled distribution on the NYSE and Nasdaq. The biggest gainers were in oil
service, healthcare, Mexico, chemical, and telecoms. The biggest losers were in
gold and silver, semiconductors, computer hardware, and biotechnology. New
52-week lows dominated the highs, with drugs, telecoms, and electronics posting
the most numbers to the downside. Stocks on our watch list were all positive.
Market breadth was mixed, with NYSE advancing
issues over declining issues by a ratio of 1.31, and up volume over down volume
by a 1.09 ratio. Nasdaq declining issues over advancing issues came in
at 1.01, and down volume beat up volume by a 1.10 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed down 0.36% at 9589.18. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed down 0.15% at 1027.52.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed
down 1.24% at 1535.48.
1,786
1,701
Issues
1,356
1,716
923,781,000
987,767,000
847,156,000
1,084,542,000
Total
Volume
1,800,249,000
2,089,198,000
Highs
12
9
28
31
Weekly Perspective:
By the end of the week, the Dow fell
335.58 points for a 3.38% decline, the S&P 500 dropped 39.61 points as it shed
3.71%, and the Nasdaq lost 80.25 points for a 4.97% sell off. For the past three
weeks the NYSE has made one accumulation day and seven distribution days, while
the Nasdaq has made three accumulation days and five distribution days.
From the charts, major technical
levels were broken as the Dow fell below its 9,800 support, the S&P 500 below
its 1,050 support, and the Nasdaq below its 1,600 support. Mark Boucher’s
Top
RS and ER List has also turned bearish, with the lows list coming in above
20 for most of the week. Our watch list lost Right Management Consultants
(
RMCI |
Quote |
Chart |
News |
PowerRating)
as a breakout, though the remaining stocks have been hanging in there. So
where’s the bottom? Nobody knows. The search continues for high quality stocks
setting up in bases.
Top sectors:
Oil Service Index
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), up 2.05% at
99.53.
Morgan Stanley Healthcare Index
(
$HMO.X |
Quote |
Chart |
News |
PowerRating),
up 1.95% at 632.41.
Losing sectors:
Gold and Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), down 5.94% at
78.75.
GSTI Semiconductor Index
(
$HUI.X |
Quote |
Chart |
News |
PowerRating), down
3.18% at
218.52.
Sectors with Most New 52-Week Highs:
No sectors were able to post 10 or more.
Watch List Action:
Panera Bread Company
(
PNRA |
Quote |
Chart |
News |
PowerRating) was our biggest gainer of the day as it rose
4.03% on above-average volume. The stock made its second close in a row above
its 50-day moving average and has made two accumulation days and three
distribution days in the past three weeks.
Christopher & Banks Co.
(
CHBS |
Quote |
Chart |
News |
PowerRating) put in a good day as it rose 2.98% on below
average volume for a slight accumulation day. The stock made its third close in
a row above its 50-day moving average and appears to be heading to test its
resistance level of 42.
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.
Chicos FAS Inc.
(
CHS |
Quote |
Chart |
News |
PowerRating), unchanged on
almost twice its average volume.
Christopher & Banks Corporation
(
CHBS |
Quote |
Chart |
News |
PowerRating), up
2.98% on below-average volume for an accumulation day.
Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating), up 3.02% on
below-average volume.
size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), up 4.03%
on above-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 |
| Chicos FAS Inc. | ( CHS | Quote | Chart | News | PowerRating) | 93 | 41.00 | + 0.00 | 703,100 | 38.08 | 42 |
Christopher & Banks | ( CHBS | Quote | Chart | News | PowerRating) | 93 | 41.09 | + 1.19 | 414,200 | 33.60 | 42.45 |
Group 1 Automotive | ( GPI | Quote | Chart | News | PowerRating) | 77 | 40.49 | + 1.19 | 276,400 | 42.23 | 50.08 |
size=2>Panera Bread Co | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 92 | 69.10 | + 2.66 | 459,500 | 66.23 | 73.60 |
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
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