Monday’s Stock Watch
Intermediate-Term Traders
Report is now 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).
Friday’s session was a
blood bath, with heavy volume marking distribution across the exchanges.
The only indexes to close positive were gold and silver and combined
insurance, while everything else closed red as natural gas, airlines, oil
service, computer hardware forest and paper, energy, and chemicals were down the
hardest. New 52-week lows piled on with diversified services, electronics, drugs
and utilities dominating the action. The new 52-week lows remained on the quiet
side.
This report may soon have no stocks setting up in
bases, handles, or recent breakouts, as two more have been removed from the
lists. The markets are simply lacking stocks with strong fundamental and
technical values in bullish trends. This is, in itself, a sign of a very weak
market.
Market breadth was mostly positive, with NYSE
advancing issues over declining issues by a ratio of 1.19, and down volume over
up volume by a 1.09 ratio. Nasdaq advancing issues over declining issues came
in at 1.18, and up volume beat down volume by a 1.43 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed up 0.81% at 8541.79. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed up 0.55% at 905.96.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed up 1.58%
at 1397.12.
729
925
Declining Issues
2,421
2,461
349,925,290
302,417,400
2,182,717,330
1,454,868,100
Total
Volume
2,544,425,250
1,774,501,300
Highs
27
62
297
192
Weekly Perspective:
The major averages continued to slide
for the week, with the Dow slammed down another 662.02 points for a 7.63% loss,
the S&P 500 dropped 74.64 points for a 7.99% thrashing, and the Nasdaq down
46.64 points for a 3.41% loss. For the past three weeks, the NYSE has made two
accumulation days and five distribution days, while the Nasdaq has made two
accumulation days and four distribution days (July 5th’s abbreviated session has
been factored out).
This week the Dow caught up to the
other two major averages by taking out its September low. Earnings announcements
have failed to inspire any buying pressure, though we’re still in full season
here. With many technical indicators screaming oversold for weeks, we might at
least expect to see a rally last more than a day. The Nasdaq has not closed
above its 20-day moving average since May of this year. Until we see a low marked
by follow-through on an index, the trend is down.
Top sectors:
Gold and Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), up 2.15% at
129.62.
Combined Insurance Index
(
$INSR.X |
Quote |
Chart |
News |
PowerRating), up 0.12% at
2260.90.
Losing sectors:
Natural Gas Index
(
$XNG.X |
Quote |
Chart |
News |
PowerRating), down 6.69% at
131.38.
Airline Index
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), down
6.22% at
52.92.
Sectors with Most New 52-Week Highs (10 or more):
None
Watch List Action:
Christopher & Banks
(
CBK |
Quote |
Chart |
News |
PowerRating) fell 4.36% on average volume for a distribution
day. The stock undercut its pivot buy point by 1.43 today. We’ll watch this one as it flirts with its 200-day moving average, though with four days of
distribution in the past three weeks, it doesn’t look so hot.
Penn National Gaming
(
PENN |
Quote |
Chart |
News |
PowerRating) fell 1.04% on below-average volume for a
distribution day. This stock has now undercut the lows of its base, and will be
coming off the list. We hope to see it here again if can put in a bottom
somewhere.
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
(
CBK |
Quote |
Chart |
News |
PowerRating),
down 4.01% on average volume for a distribution day.
| 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 | ( CBK | Quote | Chart | News | PowerRating) | 88 | 32.50 | – 1.36 | 393,300 | 33.60 | 42.45 |
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
DR Horton Inc.
(
DHI |
Quote |
Chart |
News |
PowerRating), down 3.88% size=2>
on above average volume. This one has also
undercut its base and will be coming off the list.
Penn National Gaming
(
PENN |
Quote |
Chart |
News |
PowerRating), down 1.04% size=2>
on below-average volume for a distribution day.
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 |
DR Horton Inc. | ( DHI | Quote | Chart | News | PowerRating) | 82 | 21.05 | – 0.85 | 1,357,100 |
Penn National Gaming | ( PENN | Quote | Chart | News | PowerRating) | 70 | 14.20 | – 0.15 | 523,400 |
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).