Monday’s Stock Watch
Market action
began the day mixed, though a sharp rally in the afternoon brought
the major indexes into positive closes. The Dow held the biggest gains as above-average volume just barely qualified for accumulation. Technology was once again
the day’s weakness. Stocks on our watch list were mixed, with a couple of our
biggest gainers for the last couple of months approaching their bases.
Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 1.69, and up volume over
down volume by a 1.31 ratio. Nasdaq advancing issues over declining issues came
in at 1.24, and up volume beat down volume by a 1.11 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed up
1.36% to
9,968.15. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed up
0.51%
1,086.47.
The Nasdaq [$COMPQ |$COMPQ] closed up
0.48% to
1,724.54.
1,957
1,949
Issues
1,155
1,571
781,901,000
955,355,000
596,277,000
860,437,000
Volume
1,388,517,000
1,828,297,000
Highs
38
7
10
14
Weekly Perspective:
The indexes were mixed on the week,
with the Dow closing up 65.11 points for a 0.06% gain, the S&P 500 closed down
14.34 points for a 1.2% loss, and the Nasdaq closed down 80.66 points for a 4.4%
loss. The Dow continues to flirt with its 50-day moving average, as the S&P 500
remains above a 1080 support level, and the Nasdaq at its 1720 congestion area.
For the past two weeks the NYSE has made two accumulation days over four
distribution days, and the Nasdaq has made two accumulation days against four
distribution days.
This week, heavy selling in the tech-laden Nasdaq inspired talk of the markets retesting their September lows.
Despite this, the NYSE continued to post a good number of breakouts while
Mark Boucher’s
Top
RS and ER Highs remained bullish with 20+ readings throughout the week. It
was technology that led the charge to the upside last fall, and it is now
dragging us down.
There is simply no telling where the
price action will bottom out, and it is important to wait for an invitation to
get back into the market. The base-building process for stocks takes time, and
as we search weekly for candidates that meet our high standards of fundamental
and technical criteria, we hope to eventually be adding new names to this
report. Patience will keep a portfolio out of trouble in bad markets like this
one. Until we see things turn around, intermediate-term trading is simply out of
season.
Top sectors:
Oil Index
(
$XOI.X |
Quote |
Chart |
News |
PowerRating),
up 2.16% at 519.68.
Oil Service Sector Index
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), up 2.15% at 90.83.
Losing sectors:
Airline Index
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), down 2.85% at 92.53.
Dow Jones Internet Commerce Index
(
$ECM.X |
Quote |
Chart |
News |
PowerRating), down
2.03% to 44.81.
Watch List Action:
Down on distribution we had Nvidia Corp
(
NVDA |
Quote |
Chart |
News |
PowerRating) as it shed 4.90%, coming
within a hair of a 7% stop loss using a 52.67 pivot buy. If anyone bought this
one, I imagine they would have taken a profit long ago. This company is
now the subject of a class-action suit brought on by shareholders over
accounting issues.
Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating) took it down another notch with a 0.29% loss on
almost twice average volume. The stock continues to inch towards its pivot buy
point of 38.
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.
size=2>Copart Inc.
(
CPRT |
Quote |
Chart |
News |
PowerRating), up 1.61% on below average volume.
size=2>MTR Gaming Group
(
MNTG |
Quote |
Chart |
News |
PowerRating), up 1.12% on below average
volume.
size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), up 0.93% on above average volume for
an accumulation 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 |
| size=2>Copart Inc. | size=2> ( CPRT | Quote | Chart | News | PowerRating) | 85 | 20.81 | + 0.33 | 1,014,700 | 8.60 | 25.82 |
| size=2>Genesis Microchip | size=2> ( GNSS | Quote | Chart | News | PowerRating) | 90 | 39.00 | – 0.27 | 3,361,400 | 38 | 74.90 |
| size=2>MTR Gaming Group | size=2> ( MNTG | Quote | Chart | News | PowerRating) | 96 | 16.17 | + 0.18 | 584,900 | 14.30 | 17.16 |
| size=2>Nvidia Corp. | size=2> ( NVDA | Quote | Chart | News | PowerRating) | 88 | 49.92 | – 2.58 | 9,673,200 | 52.67 | 72.66 |
| size=2>Panera Bread Co. | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 91 | 51.93 | + 0.48 | 370,400 | 14.55 | 64.94 |
Stocks Forming a Handle
American Medical Systems Holdings
(
AMMD |
Quote |
Chart |
News |
PowerRating),
down 4.50% on below-average volume.
DRS Technologies
(
DRS |
Quote |
Chart |
News |
PowerRating), up 0.71% on average
volume for an accumulation 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 |
American Medical Systems Holdings | ( AMMD | Quote | Chart | News | PowerRating) | 92 | 22.49 | – 1.06 | 303,300 |
DRS Technologies | ( DRS | Quote | Chart | News | PowerRating) | 95 | 39.62 | + 0.28 | 275,700 |
Stocks Building A Base
size=2>Multimedia Games Inc.
(
MGAM |
Quote |
Chart |
News |
PowerRating), down 2.67% 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 |
| size=2>Multimedia Games Inc. | size=2> ( MGAM | Quote | Chart | News | PowerRating) | size=2>99 | 27.28 | – 0.75 | 326,000 |
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com