Monday’s Stock Watch

• April 12, 2002
• TradingMarkets Editors

The major
indices posted gains with volume coming in well below average.
Software, airline, and Internet stocks made the biggest advances, with oil and energy
stocks leading the downside. New 52-week highs on the NYSE perked up again for a
121 reading, with the lows quiet as ever. Yesterday’s lopsided breadth was
reversed in today’s action. Stocks on our watch list were mostly up, with one of
our most recent breakouts finding its way off our list.

Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 1.99, and up volume over
down volume by a 1.71 ratio. Nasdaq advancing issues over declining issues came
in at 1.92, and up volume beat down volume by a 3.48 ratio.

The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed up 0.14% at 10190.82. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed up 0.66% at 1111.01.
The Nasdaq [$COMPQ |$COMPQ] closed
up 1.79% at 1756.21.

 

Weekly Perspective:

The major averages turned in negative
performances for the week, as the Dow fell 80.82 points for a 0.79% loss, the
S&P 500 fell 11.72 points for a 1.04% decline, and the Nasdaq came in with a
13.84 point loss to shed 0.78%. The past three weeks have brought the NYSE three
days of accumulation and four days of distribution, and the Nasdaq four days of
accumulation and two days of distribution. From the weekly charts, the Dow, S&P
500, and Nasdaq have all  cut below their upward trend lines.

In review, the markets held a poor
reception for the first dose of earnings for the quarter, while tension in the
Middle East continued to dominate the headlines. Though price action dragged,
the new 52-week highs lists, along with Mark Boucher’s
Top
RS and ER List, continued to plug away on the bullish track. Wednesday’s
volume spike to the upside was the first above average day in a month, giving an
indication of institutional sponsorship for the market. Our watch lists also had
a couple of breakouts, though one has already come off. So what does this all
mean? This remains a tough environment with much uncertainty. Earnings news will
most likely put a spin on things, and with the potential for war breaking out in
the Middle East, the market is further pressured. Our recent breakouts in Panera
Bread and Christopher & Banks are encouraging, and we will continue to watch
these as a measure of strength in the market.    

Top sectors:

GSTI Software Index
(
$GSO.X |
Quote |
Chart |
News |
PowerRating),
up 4.91% at 144.59.

Airline Index
(
$XAL.X |
Quote |
Chart |
News |
PowerRating),
4.37% at 103.99.

Losing sectors:

Oil Service Sector
Index
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) down 4.11% at
93.40.

Deutsche
Bank Energy
Index
(
$DXE.X |
Quote |
Chart |
News |
PowerRating) down 3.60% to 398.66.

New 52-Week Highs Consolidations:

Banking – 75

Real Estate – 53

Consumer Non-Durables – 21

Food and Beverage – 17

Insurance – 17

Diversified Services – 16

Leisure – 15

Materials and Construction – 13

Retail – 10

Health Services – 9

Manufacturing – 9

Specialty Retail – 9

Wholesale – 9

Consumer Durables – 8

Automotive – 7

Metals and Mining – 6

Computer Software – 5

Drugs – 5

Utilities – 5

Electronics – 4

Aerospace/Defense – 3

Chemicals – 3

Telecommunications – 3

Transportation – 3

Watch List Action:

Panera Bread Company
(
PNRA |
Quote |
Chart |
News |
PowerRating) reversed yesterday’s loss with a 2.25% gain
on average volume as the stock finds itself in rough weather after its recent
breakout Wednesday.

Another recent breakout, Christopher & Banks Corp
(
CHBS |
Quote |
Chart |
News |
PowerRating) appears
to be healthy as it rose 0.89% on below average volume. We like to see the
volume drop off on the pullback, and after a strong breakout this one has held
up fine so far. 

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), 
up 0.89% on below-average volume.

Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating), up 1.46% on
below-average volume.

Movie Gallery
(
MOVI |
Quote |
Chart |
News |
PowerRating),
down 8.55% on over twice average volume. This one will be
coming off the list. 

size=2>Multimedia Games Inc.
(
MGAM |
Quote |
Chart |
News |
PowerRating), up 2.76% below-average volume.

size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), up 2.25% 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	Pivot	52-Week High
Christopher & Banks	( CHBS | Quote | Chart | News | PowerRating)	90	37.25	+ 0.33	570,700	33.60	38.69
Group 1 Automotive	( GPI | Quote | Chart | News | PowerRating)	94	41.60	+ 0.60	323,500	38.19	43.69
Movie Gallery	  ( MOVI | Quote | Chart | News | PowerRating)	97	15.49	– 1.45	400,900	33.96	18.60
size=2>Multimedia Games Inc.	size=2> ( MGAM | Quote | Chart | News | PowerRating)	98	33.50	+ 0.90	364,900	30.91	37.05
size=2>Panera Bread Co	size=2> ( PNRA | Quote | Chart | News | PowerRating)	94	68.61	+ 1.51	465,500	66.23	69.70

Stocks Forming a Handle

Krispy Kreme Doughnuts
(
KKD |
Quote |
Chart |
News |
PowerRating), up 1.52% 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
Krispy Kreme Doughnuts	( KKD | Quote | Chart | News | PowerRating)	77	40.63	+ 0.61	628,100	44.12

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