Thursday’s Stock Watch
The broader markets
failed to follow through from yesterday’s rally. Early in the day’s action we
witnessed several stocks come out of bases to make new two-month highs, but it
wasn’t enough. After four sessions of rallies we have yet to see any real
commitment via high volume or high percentage gains from the major indexes.
Technology and the Nasdaq remain the strongest, and the finance sector is
beginning to show some positive signs. Until we see better indications that
overhead resistance will be challenged, full conviction for a bull market cannot
be made.
Patience is the name of the game.
The Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed down
0.38% to
9,554.37. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed down
0.30%
to
1,115.45.
The Nasdaq [$COMPQ.X |$COMPQ.X] closed up
0.13%
to
1,837.53.
Overall volume on the NYSE was
1,407,970,000.
NYSE advancing issues were 1,599 with up-volume at
610,983,000; declining issues were 1,528, with down-volume at 788,500,000.
Overall volume on the Nasdaq was
2,053,562,000. Nasdaq advancing issues were
1,672, with up-volume at 1,365,714,000; declining issues were 1,928 with down-
volume at 668,657,000. The intraday action showed up-volume dominating early
trading, and down-volume dominating late trading. The NYSE had
21 new 52-week highs and 5 new lows. The
Nasdaq had 13 new 52-week highs, and 5 new lows.
The top sectors were:
Securities Broker Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating)
up 2.86% to 480.6
Morgan Stanley Internet Idx
(
$MOX.X |
Quote |
Chart |
News |
PowerRating)
up 2.15% to 582.74.
Losing sectors were:
Japan Index
(
$JPN.X |
Quote |
Chart |
News |
PowerRating) down
3.33% to 109.42
North American Telecoms Index
(
$XTC.X |
Quote |
Chart |
News |
PowerRating)
down 1.20% to 787.83.
Taro Pharmaceuticals (Taro) busted out of its handle on a
265% volume increase. The 6.78% price increase was confirmed by Pharmaceutical
Res
(
PRX |
Quote |
Chart |
News |
PowerRating), which jumped 7.10%.
PEC Solutions
(
PECS |
Quote |
Chart |
News |
PowerRating) made a recovery, up 9.41% from its distribution dump
yesterday. The handle is not exhibiting the desired drift and is much too active
with big wide-range days.
Nvidia
(
NVDA |
Quote |
Chart |
News |
PowerRating) hit new high ground, but on lackluster volume. Out of the
weak Computer Graphics group, the company is not accompanied by other high RS
stocks in its group.
Recent Breakouts with a Relative Strength
of 80 or Better:
Company Name |
Symbol |
Relative Strength |
Price |
Average Volume |
| Taro Pharmaceutical | ( TARO | Quote | Chart | News | PowerRating) |
98 | 47.54 | 701,300 |
| NVIDIA Corp. | ( NVDA | Quote | Chart | News | PowerRating) |
94 | 50.63 | 11,767,500 |
| Genesis Microchip | ( GNSS | Quote | Chart | News | PowerRating) |
99 | 50.61 | 2,170,100 |
Stocks Building
A Base With A Minimum Relative Strength of 80.
Company Name |
Symbol |
Relative Strength |
Price |
Average Volume |
| THQ Inc. | ( THQI | Quote | Chart | News | PowerRating) |
97 | 57.41 | 2,184,500 |
| Career Education Corp. | ( CECO | Quote | Chart | News | PowerRating) |
92 | 31.96 | 1,083,000 |
Stocks forming a
Handle
Company Name |
Symbol |
Relative Strength |
Price |
Average Volume |
| Pec Solutions Inc. |
( PECS | Quote | Chart | News | PowerRating) |
97 | 25.00 | 433,200 |
| Krispy Kreme Doughnuts | ( KKD | Quote | Chart | News | PowerRating) |
95 | 36.70 | 570,700 |
| Integra LifeSciences Hld | ( IART | Quote | Chart | News | PowerRating) |
96 | 29.35 | 347,800 |
Remember that all securities are
risky. In any trade, you should always reduce your risk by adjusting position
size and placing open protective stops where you will sell your long or
cover your short in case the market turns against you. For an introduction to
combining price stops with position sizing, see our lesson,
Risky
Business.