Monday’s Stock Watch
The markets
ended mixed today as another low volume session kept the major
indexes in narrow ranges. Networking, semiconductor, and Internet stocks made
the biggest gains, with gold and silver, and biotechnology deepest in the red.
New 52-week highs held their trend for a combined bullish reading of 95 on the
NYSE and Nasdaq. Stocks on our watch list were mixed, with one breakout for the
books.
Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 1.23, and up volume over
down volume by a 1.51 ratio. Nasdaq advancing issues over declining issues came
in at 1.31, and up volume beat down volume by a 2.10 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed down 0.22% to
10,403.94. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed up 0.24% to
1147.39.
The Nasdaq [$COMPQ |$COMPQ] closed up 1.01% to 1845.36.
1,742
2,034
Issues
1,414
1,548
654,351,000
1,079,688,000
432,965,000
513,657,000
Volume
1,112,055,000
1,642,000,000
Highs
54
41
1
3
Weekly Perspective:
This shortened week for the markets
had little bearing on price change, as the Dow lost 23.73 points for a 0.02%
loss, the S&P 500 lost 1.31 points for a 0.01% loss, and the Nasdaq lost 6.64
points for a 0.03% loss. Though volume remained light for the week, the
NYSE and Nasdaq were able to score an accumulation day a piece. From a technical
perspective, not a whole lot has changed, with the Dow and S&P 500 above their
50 and 200 day moving averages, and the Nasdaq below these marks. From the
weekly charts, the S&P 500 stalled at its high made at the beginning of this
year, and the Nasdaq continued to struggle with its downward trend line.
As always, we take the wait and see
approach to the markets. Our weekly search for quality stocks forming bases is
still coming up dry, though our most recent breakouts have been hanging in
there. Direct Focus
(
DFXI |
Quote |
Chart |
News |
PowerRating) made a high volume breakout move, and with two
other candidates geared to go, we have hope. New 52-week highs as a whole remain
a bullish indication for the market, and with Mark Boucher’s
Top
RS and ER list giving us further signs of strength, we have reason to
believe their is real conviction for this market.
Top sectors:
GSTI Multimedia Networking
Index
(
$XGIPX |
Quote |
Chart |
News |
PowerRating)
up 3.57% at 99.78.
Networking
Index
(
$NWX.X |
Quote |
Chart |
News |
PowerRating) up
3.49% at 244.19.
Losing sectors:
Gold and
Silver
Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) down 1.78% at 70.89.
S&P Banks
Index
(
$BIX.X |
Quote |
Chart |
News |
PowerRating) down 0.94% to 682.70.
New 52-Week Highs Consolidations:
Banking – 36
Health Services – 17
Computer Software – 17
Diversified Services – 16
Real Estate – 16
Utilities – 16
Consumer Non-Durables – 12
Leisure – 10
Manufacturing – 10
Electronics – 9
Energy – 8
Metals and Mining – 8
Food and Beverage – 7
Specialty Retail – 7
Retail – 6
Insurance – 6
Materials and Construction – 6
Media – 6
Chemicals – 5
Financial Services – 5
Telecommunications – 4
Wholesale – 4
Aerospace/Defense – 3
Computer Hardware – 3
Consumer Durables – 3
Conglomerates – 3
Drugs – 3
Internet – 3
Watch List Action:
Breaking out today we had Direct Focus
(
DFXI |
Quote |
Chart |
News |
PowerRating) rise 7.67% on over four
times average volume. This was a nice clean breakout, and we can only hope that
this time around the stock holds out better than its 1/09 breakout. Today’s
pivot point was 36.54, and it is ideal to buy within 5 to 10 percent of this.
Coming down today, we had Group 1
Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating) fall 2.32% on below average volume. This one is still
consolidating.
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.
Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating), down 2.32% on below-average volume.
size=2>Multimedia Games Inc.
(
MGAM |
Quote |
Chart |
News |
PowerRating), up 4.15% 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 |
Group 1 Automotive | ( GPI | Quote | Chart | News | PowerRating) | 95 | 39.05 | – 0.93 | 309,200 | 33.14 | 43.69 |
size=2>Multimedia Games Inc. | size=2> ( MGAM | Quote | Chart | News | PowerRating) | size=2>99 | 35.35 | +1.41 | 365,200 | 30.91 | 37.05 |
Stocks Forming a Handle
Direct Focus Inc.
(
DFXI |
Quote |
Chart |
News |
PowerRating) up 7.66% on four
times average volume for a breakout.
Krispy Kreme Doughnuts
(
KKD |
Quote |
Chart |
News |
PowerRating), down 0.72% on
below-average volume.
size=2>
size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), up 1.40% on
below-average volume for an accumulation day.