Monday’s Stock Watch
The markets were mixed on
another day of below average volume. The NYSE made for another
day of accumulation, as the Nasdaq was down with distribution. The strongest
sectors were oil, transportation, forest and paper products, and broker/dealers.
The biggest losing sectors were biotechnology, computer hardware, software, and
networking. New 52-week highs were dominated by banking and real estate, as
stocks on our watch list were mixed.
Market breadth was mostly positive, with NYSE
advancing issues over declining issues by a ratio of 1.57, and up-volume over
down-volume by a 1.59 ratio. Nasdaq advancing issues over declining issues came
in at 1.06, and down-volume beat up-volume by a 2.91 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed up 0.12% at 9923.87. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed up 0.25% at 1067.34. The
Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed down 0.97% at 1515.99.
1,916
1,790
Issues
1,223
1,689
735,775,000
397,305,000
461,323,000
1,155,797,000
Total
Volume
1,226,316,000
1,626,388,000
Highs
37
14
6
7
Weekly Perspective:
The major indexes put in another week of selling, as the Dow fell
179.01 points for a 1.77% decline, the S&P 500 dropped 16.68 points for a 1.54%
loss, and the Nasdaq shed 45.76 points for a 2.75% hair cut. For the past three
weeks, volume on the NYSE has made three accumulation days, with five
distribution days, and the Nasdaq has made three accumulation days with four
distribution days.
Low volume was once again the theme for the week, as tension of
potential war in Pakistan and India dominated the headlines. The S&P 500 and
Nasdaq remain below their major moving averages, while the Dow remains below its
50-day and above its 200-day. Stocks on our watch lists were hit with heavy
selling , with many close to coming off. This continues to be a bad market to be
for IT traders, though discipline to stay out of uncertain markets keeps the
accounts of IT traders intact and ready for when things get better. The search
continues for high-quality stocks meeting our criteria.
Top sectors:
Dow Jones Transportation Index
(
$TRAN.X |
Quote |
Chart |
News |
PowerRating), up 1.15% at
2749.26.
Oil Service Sector Index
(
$OSX.X |
Quote |
Chart |
News |
PowerRating),
up 1.13% at 105.64.
Losing sectors:
Biotechnology
Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating),
down 2.52% at 405.04.
Computer Hardware Index
(
$HWI.X |
Quote |
Chart |
News |
PowerRating), down 2.47% at 133.69.
Sectors with Most New 52-Week Highs:
Banking — 21
Real Estate — 13
Watch List Action:
Our biggest gainer of the day was Chico’s FAS
(
CHS |
Quote |
Chart |
News |
PowerRating) as it rose 4.85% on
almost twice average volume. The stock bounced off its 50-day moving average for
today’s move, which is encouraging.
Right Management Consultants
(
RMCI |
Quote |
Chart |
News |
PowerRating) rose 1.49% on below average volume. For
the past three weeks, the stock has made three accumulation days and one
distribution day. As it trades above both its 50-day and 200-day moving averages,
the bias remains bullish, though this one is close to hitting an 8% stop
loss from its pivot.
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.
Chico’s FAS Inc.
(
CHS |
Quote |
Chart |
News |
PowerRating), up 4.84% on almost
twice its average volume.
Christopher & Banks Corporation
(
CHBS |
Quote |
Chart |
News |
PowerRating), up
3.59% on below-average volume.
Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating), up 2.15% on
above-average volume.
size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), down 0.68%
on almost three times average volume. This one
is very close to coming off the list.
Right Mgt. Consultants
(
RMCI |
Quote |
Chart |
News |
PowerRating), down 1.50% 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 |
| Chico’s FAS Inc. | ( CHS | Quote | Chart | News | PowerRating) | 89 | 38.27 | + 1.77 | 660,700 | 38.08 | 42 |
Christopher & Banks | ( CHBS | Quote | Chart | News | PowerRating) | 92 | 39.78 | + 1.38 | 418,900 | 33.60 | 42.45 |
Group 1 Automotive | ( GPI | Quote | Chart | News | PowerRating) | 84 | 42.75 | + 0.90 | 255,400 | 42.23 | 50.08 |
size=2>Panera Bread Co | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 89 | 62.29 | – 0.43 | 413,200 | 66.74 | 73.60 |
Right Mgt. Consultants | ( RMCI | Quote | Chart | News | PowerRating) | 92 | 27.58 | – 0.42 | 336,400 | 290,200 | 33.57 |
Stocks Forming a Handle
DR Horton Inc.
(
DHI |
Quote |
Chart |
News |
PowerRating), up 0.69%
on below-average volume. This one is coming off
the list, as it has trouble with its 50-day moving average and its RS has dropped
off.
| 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 |
DR Horton Inc. | ( DHI | Quote | Chart | News | PowerRating) | 78 | 24.52 | + 0.17 | 1,837,100 | 27.29 |
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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