Monday’s Stock Watch
The
markets were quiet this Friday with the averages moving very
little on low volume.
Healthcare along with gold and silver were the stand out gainers,
while telecoms, semiconductors, utilities and networking weighed
down the negative column. Health services stocks continue to be
among the strongest from the 52-week high consolidations list, as
the index advanced nicecly. Stocks on our watch list were mixed,
with our most recent breakout turning it on again.
Market breadth was
mixed, with NYSE advancing issues over declining issues by a
ratio of 1.26, and up volume over down volume by a 1.08 ratio.
Nasdaq declining issues over advancing issues came in at 1.10,
and down volume beat up volume by a 1.05 ratio.
The Dow
Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed down 0.50% at
10257.11. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating) closed up 0.06 at
1125.16. The Nasdaq [$COMPQ |$COMPQ] closed down 0.31 at
1796.75.
width=”454″ height=”391″>
height=”202″>
Weekly
Perspective:
Gains were made on
the week, with the Dow squeezing out 66.18 points for a 0.65%
increase, the S&P 500 rose 12.16 points for a 1.27% rise, and
the Nadaq pushed 40.64 points higher for a 2.31% advance. For the
past three weeks, the NYSE has made three accumulation days and
five distribution days, where the Nasdaq has made three
accumulation days and three distribution days. Currently all
three major averages are flirting with their 50-day moving
averages.
This earnings season
has been delivering its share of surprises and disappointments,
while the indexes remain in a range. After reading
Whatever may be the case, it has been clear that this is not a
good market for intermediate-term trading, as only four of our
breakouts still survive on our list. Despite the choppy price
action, the number of new 52-week highs continues to push north,
with the lows list nearly obsolete. This past week we saw banking
top the 52-week high consolidations list, with real estate
tapering off and healthcare moving up. Next week will be
interesting.
Top sectors:
face=”Arial”> Morgan Stanley Healthcare Index
(
$HMO.X |
Quote |
Chart |
News |
PowerRating)
up 2.86% at 585.71.
face=”Arial”> Disk Drive
(
$DDX.X |
Quote |
Chart |
News |
PowerRating) up 2.63% at 105.73.
Losing sectors:
North American
Telecoms Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), down 2.83% at 580.35.
Networking Index
(
$NWX.X |
Quote |
Chart |
News |
PowerRating),
down 1.75% at 228.92
New 52-Week Highs
Consolidations:
Banking – 33
Health Services – 23
Leisure – 14
Retail – 13
Food and Beverage –
12
Consumer Non-Durables
– 10
Insurance – 7
Specialty Retail – 7
Computer Software – 6
Electronics – 6
Energy – 6
Manufacturing – 5
Materials and
Construction – 5
Automotive – 5
Real Estate – 5
Transportation – 5
Utilities – 8
Consumer Durables – 4
Internet – 4
Media – 4
Wholesale – 4
Conglomerates – 3
Drugs – 3
Watch List Action:
Ameristar Casinos
(
ASCA |
Quote |
Chart |
News |
PowerRating)
turned it on again as it followed its breakout yesterday with a
6.54% gain on over four times average volume. So far so good.
width=”443″ height=”407″>
Christopher & Banks Corp
(
CHBS |
Quote |
Chart |
News |
PowerRating) made new 52-week high today before retreating to
lower levels, and closed with a 0.18% gain on below average
volume. Again, the stock would appear healthier if these gains
were made on heavier volume.
width=”443″ height=”407″>
Recent Breakouts
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.
Ameristar Casninos
(
ASCA |
Quote |
Chart |
News |
PowerRating), up
6.53% on over four times average volume for a distribution day.
Christopher & Banks
Corporation
(
CHBS |
Quote |
Chart |
News |
PowerRating), up 0.18% on below-average volume.
Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating), up
1.34% on below-average volume.
Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), down
1.21% on below-average volume.
| height=”26″>Company | height=”26″>Symbol | height=”26″>12 | height=”26″>Price | height=”26″>Price | height=”26″>Average | height=”26″>Pivot | height=”26″>52-Week |
| height=”26″>Ameristar | height=”26″> | height=”26″>95 | height=”26″>32.42 | height=”26″>+ 1.99 | height=”26″>187,000 | height=”26″>30.90 | height=”26″>32.55 |
| height=”26″>Christopher & | height=”26″> | height=”26″>88 | height=”26″>38.60 | height=”26″>+ 0.07 | height=”26″>524,200 | height=”26″>33.60 | height=”26″>39.25 |
| height=”16″>Group 1 | height=”16″> | height=”16″>91 | height=”16″>42.23 | height=”16″>+ 0.56 | height=”16″>304,800 | height=”16″>42.23 | height=”16″>43.69 |
| height=”2″>Panera Bread Co | height=”2″> | height=”2″>92 | height=”2″>66.74 | height=”2″>– 0.82 | height=”2″>405,800 | height=”2″>66.74 | height=”2″>– 0.82 |
Stocks Forming a Handle
| height=”16″>Company | height=”16″>Symbol | height=”16″>12 | height=”16″>Price | height=”16″>Price | height=”16″>Average | height=”16″>Pivot |
| height=”16″>None | height=”16″> | height=”16″> | height=”16″> | height=”16″> | height=”16″> | height=”16″> |
Stocks Building A Base
Beazer Homes
(
BZH |
Quote |
Chart |
News |
PowerRating), up 2.30%
on below-average volume.
| height=”17″>Company | height=”17″>Symbol | height=”17″>12 | height=”17″>Price | height=”17″>Price | height=”17″>Average |
| height=”20″>Beazer Homes | height=”20″> | height=”20″>82 | height=”20″>81.50 | height=”20″>+ 1.84 | height=”20″>539,000 |
face=”Arial”>danielb@tradingmarkets.com
If you are new to the
"IT" strategy, be sure to take a look at our