Monday’s Stock Watch
Bears ruled the day, as the
three major indexes were hit with losses. The NYSE came in with
average volume, while the Nasdaq racked up its fourth day in a row of above
average volume. Leading the gainers list were gold and silver, oil, and forest
and paper issues, with Internet, semiconductors, networking, and airlines
furthest in the gutter. New 52-week highs outnumbered a relatively quiet lows
list, with banking leading the upside action. There was only one gainer on our
watch list.
Market breadth was mixed, with NYSE
advancing issues over declining issues by a ratio of 1.11, and down volume over
up volume by a 1.55 ratio. Nasdaq declining issues over advancing issues came in
at 1.18, and down volume beat up volume by a 3.31 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed down 0.84% at 10006.63. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed down1.02% at 1073.46.
The Nasdaq [$COMPQ |$COMPQ] closed down 1.92% at 1613.23.
Â
1,640
1,589
Issues
1,480
1,8
494,463,000
450,857,000
765,426,000
1,494,209,000
Total
Volume
1,283,400,000
1,960,491,000
Highs
78
38
11
21
Weekly Perspective:
This past week brought little change
to the Dow as it closed up 95.91 points for a 0.97% gain, and the S&P 500 as it
lost 2.89 points for a 0.27% loss. Yhe Nasdaq on the other hand suffered a 50.86
point loss for a 3.06% decline. For the past three weeks, the NYSE has made two
accumulation days and three distribution days, where the Nasdaq made three
accumulation days with three distribution days. From the charts, the Dow is
trading just above its 200-day moving average, while the S&P 500 and Nasdaq
remain well below this mark.
This market is torn between a decline
in the tech heavy Nasdaq and an advance of select issues on the NYSE which
continue to make new highs. As the Nasdaq turns down to threaten a test of the
September lows, the Dow was able to close above its psychological 10,000 mark.
Next Tuesday’s FOMC meeting is unlikely to bring momentum to either side of the
tug-of-war, as interest rates are expected to be left unchanged.
This past week saw bullish numbers
from Boucher’s
Top
RS and ER List, and is a key gauge to watch going forward. The indicator
will remain bullish with readings over 20, and when bearish, may expose overall
weakness in the market. Banking and consumer non-durables were the winners of
the “Sectors with Most New 52-Week Highs” list, with retail and retail estates
losing some steam. Our watch list has been reduced to four stocks, though action
from the recent breakouts continues. The search continues for high quality
stocks to add to our lists.
Top sectors:
Gold and Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), up 3.13% at
112.34.
Nasdaq Combined Transport Index
(
$TRAN.X |
Quote |
Chart |
News |
PowerRating),
up 2.61% at 78.36.
Losing sectors:
Semiconductor
Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) down 4.72% at
480.25.
Morgan
Stanley Internet
Index
(
$MOX.X |
Quote |
Chart |
News |
PowerRating) down 4.67% at 8.77.
Sectors with Most New 52-Week Highs:
Banking – 76
Consumer Non-Durables – 27
Real Estate – 21
Utilities – 18
Diversified Services – 15
Insurance – 14
Leisure – 14
Retail – 14
Manufacturing – 12
Materials and Construction -12
Consumer Durables – 11
Energy – 11
Specialty Retail – 11
Wholesale – 11
Food and Beverage – 10
Watch List Action:
Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating) was our biggest gainer today as it rose 2.98% on
average volume. The auto retailers received bullish comments form Merrill Lynch
today who said the group will likely outperform all other retailers for the next
five years.
Beazer Homes
(
BZH |
Quote |
Chart |
News |
PowerRating) fell half a percent on below average volume as it remains
in its handle formation.
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 Corporation
(
CHBS |
Quote |
Chart |
News |
PowerRating), down
1.32% on below-average volume.
Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating), up 2.97% on
average volume.
size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), down 0.22%
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) | 92 | Â 38.00 | – 0.51 | 503,900 | 33.60 | 39.25 |
Group 1 Automotive | ( GPI | Quote | Chart | News | PowerRating) | 95 | 49.12 | + 1.42 | 304,700 | 42.23 | 46.72 |
size=2>Panera Bread Co | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 94 | 71.64 | – 0.16 | 408,600 | 66.74 | 72.05 |
Stocks Forming a Handle
Beazer Homes
(
BZH |
Quote |
Chart |
News |
PowerRating), down 0.54%
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 |
Beazer Homes | ( BZH | Quote | Chart | News | PowerRating) | 84 | 91.05 | – 0.50 | 592,200 | 91.45 |
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 | Â | Â | Â | Â | Â |
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com
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