Monday’s Stock Watch

• March 22, 2002
• TradingMarkets Editors

The trading
range was narrow today as the three major averages posted losses on
the session. Volume for the NYSE and Nasdaq came in below average, with gold and
silver, airline, and Mexico related stocks making the top gains, and oil
service, energy, telecom, and Japan stocks leading the losers. As it was all
week, the number of new 52-week highs on the NYSE maintained its bullish trend.
Stocks on our watch list were mixed.      

Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 1.36, and down volume over
up volume by a 1.42 ratio. Nasdaq declining issues over advancing issues came in
at 1.32, and down volume beat up volume by a 1.32 ratio.

The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed down – 0.49% to
10,427.67. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed down 0.42% to
1,148.70.
The Nasdaq [$COMPQ |$COMPQ] closed up 0.93% to 1851.39.

 

Weekly Perspective:

Market action was slow and choppy this
week as low-volume brought the Dow down 179 points for a 1.61% loss, the S&P 500
down 17.46 points for a 1.51% loss, and the Nasdaq down 16.91 points for a 0.90%
loss. For the past three weeks, the NYSE has made four accumulation days and
three distribution days, while the Nasdaq has made four accumulation days and
zero distribution days.

From a technical perspective,
the Dow is showing the greatest strength as it is trades well above its 50 and
200-day moving averages, though it ended the week below its recent
consolidation. The S&P 500  remains just above its 200-day moving average,
as it too ended the week below its recent consolidation.  Technology still
remains a clear area of weakness in the market, as the Nasdaq has yet to
penetrate its downward trend line and is trading below its major moving
averages. With the
VIX at major lows, there is good reason to
remain cautious over the near-term prospects. As we continue to lack stocks
meeting our top fundamental and technical criteria, it has been somewhat
encouraging to see our most recent breakouts hanging in there.

Top sectors:

Gold and Silver Index

(
$XAU.X |
Quote |
Chart |
News |
PowerRating) up 3.44% at 67.86.

Airline Index
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) up
3.10% at 105.04.

Losing sectors:

Oil Service
Index
(
OSX.X |
Quote |
Chart |
News |
PowerRating) down 4.97% at 97.96.

Deutsche Bank Energy

Index
(
$DXE.X |
Quote |
Chart |
News |
PowerRating) down
2.61% to 415.97.

New 52-Week Highs Consolidations:

Banking – 39

Real Estate – 25

Utilities – 13

Leisure – 11

Food and Beverage – 10

Retail – 9

Wholesale -  8

Computer Software – 8

Drugs – 7

Health Services – 7

Insurance – 7

Diversified Services – 7

Metals and Mining – 7

Manufacturing – 6

Consumer Non-durables – 6

Chemicals – 5

Internet – 5

Consumer Durables – 4

Energy – 4

Media – 4

Specialty Retail – 3

Electronics – 3

Telecommunications – 3

Transportation – 3

Watch List Action:

Panera Bread Company
(
PNRA |
Quote |
Chart |
News |
PowerRating) made a 0.201% gain on less than average
volume. The stock appears to be at the beginning of forming a handle, though we
will put this one the “Stocks Building A Base” list until the situation is
clear.

Group 1
Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating) fell another 1.86% on average volume for a distribution
day. The stock has made two accumulation days and two distribution days in the
past three weeks.

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 1.86% on average volume for an accumulation
day.

size=2>Multimedia Games Inc.
(
MGAM |
Quote |
Chart |
News |
PowerRating), down 0.22% 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	Pivot	52-Week High
Group 1 Automotive	( GPI | Quote | Chart | News | PowerRating)	96	38.37	– 0.73	315,400	33.14	43.69
size=2>Multimedia Games Inc.	size=2> ( MGAM | Quote | Chart | News | PowerRating)	size=2>99	34.86	– 0.14	367,400	30.91	37.05

Stocks Forming a Handle

DRS Technologies
(
DRS |
Quote |
Chart |
News |
PowerRating), down 0.98% on below-average volume.

Krispy Kreme Doughnuts
(
KKD |
Quote |
Chart |
News |
PowerRating), up 0.33% on
low 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
DRS Technologies	( DRS | Quote | Chart | News | PowerRating)	88	38.32	– 0.38	223,800	38.32
Krispy Kreme Doughnuts	( KKD | Quote | Chart | News | PowerRating)	81	42.48	+0.14	706,500	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
size=2>Panera Bread Co	size=2> ( PNRA | Quote | Chart | News | PowerRating)	95	64.66	+ 0.13	448,800

size=2>
size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), up 0.20% on
below-average volume for an accumulation day.  

 

href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com