Monday’s Stock Watch
The markets
closed poorly today with above average volume sinking all three major averages.
Gold and silver was the clear winner of the day, with Internet, oil
service, and Mexico issues also closing positive. New 52-week lows on the Nasdaq
outnumbered the highs, with the NYSE’s lows list showing some signs of life for
a change. Stocks on our watch list were all down.
Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 1.52, and down volume over
up volume by a 3.04 ratio. Nasdaq declining issues over advancing issues came in
at 1.93, and down volume beat up volume by a 5.55 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed down 1.23% at 9910.726 The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed down 1.38% at 1076.32.
The Nasdaq [$COMPQ |$COMPQ] closed down 2.90% at 1663.90.
Â
1,236
1,185
Issues
1,879
2,291
334,306,000
283,471,000
1,015,686,000
1,572,149,000
Total
Volume
1,361,566,000
1,865,962,000
Highs
36
19
16
36
Weekly Perspective:
This week proved to be the worst week of
the year for the markets, with the Dow shedding 346.39 points for a 3.38% loss,
the S&P 500 falling 48.85 points for a 4.34% decline, and the Nasdaq taken down 132.94 points for a 7.40% fall. For the past three weeks, the NYSE has posted
two days of accumulation vs. five days of distribution, and the Nasdaq has made
three days of accumulation vs. three days of distribution. The Dow is currently
parked at its 200-day moving average, with the S&P 500 and Nasdaq well below
this mark.
The major indexes have been trading in
a narrow range for over six months now. Earnings season has so far failed to
inspire a rally, while distribution adds up and the contrarian indicator ofÂ
market optimism remains high. The markets are currently flirting with
psychological support levels, with the Dow under 10,000, and the S&P 500
breaking below it’s pre 9/11 levels. Currently the S&P 500 remains at a
triple-bottom support level, that if broken, suggests further downside
correction. This is not a good market for an intermediate-term trader.
This week we lost one of our breakout
selections, Ameristar Casinos
(
ASCA |
Quote |
Chart |
News |
PowerRating), as banking, health services, and
retail held the top spots for sectors with new 52-week highs.
Top sectors:
Gold and Silver Index
(
$XAL.X |
Quote |
Chart |
News |
PowerRating),
up 4.81% at 77.50.
Oil Service Sector Index
(
$OSX.X |
Quote |
Chart |
News |
PowerRating),
up 1.01% at 107.86.
Losing sectors:
Morgan Stanley Internet Index
(
$MOX.X |
Quote |
Chart |
News |
PowerRating) Â down 4.68% at
9.76.
TheStreet.com Internet
Index
(
$DOT.X |
Quote |
Chart |
News |
PowerRating) down 4.59% at 128.43.
Sectors with Most New 52-Week Highs:
Banking – 35
Diversified Services – 17
Health Services – 13
Retail – 13
Consumer Non-Durables – 12
Metals and Mining – 12
Insurance – 11
Leisure – 10
Watch List Action:
Beazer Homes
(
BZH |
Quote |
Chart |
News |
PowerRating) fell 3.72% on average volume. The stock appears to be
a handle stage. So far volume has been decreasing, which is a good sign going
forward. Ideally we want to see a nice and tight slope down with the down volume
drying up, with a correction of no more than 10 % to 15%.
Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating) fell 1.13% on below average volume. The stock is
trending sideways like most of the selections on this report.
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
0.53% on low volume.
Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating), down 1.13% on
below-average volume.
size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), down 1.74%
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) | 89 | 37.30 | – 0.20 | 515,300 | 33.60 | 39.25 |
Group 1 Automotive | ( GPI | Quote | Chart | News | PowerRating) | 95 | 43.50 | – 0.50 | 303,900 | 42.23 | 43.69 |
size=2>Panera Bread Co | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 92 | 66.06 | – 1.10 | 395,200 | 66.74 | – 0.82 |
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 | Â | Â | Â | Â | Â | Â |
Stocks Building A Base
Beazer Homes
(
BZH |
Quote |
Chart |
News |
PowerRating), down 3.74%
on 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 |
Beazer Homes | ( BZH | Quote | Chart | News | PowerRating) | 86 | 85.63 | – 3.32 | 581,100 |
Â
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com
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