Thursday’s Stock Watch
The broader markets
had the bulls knocking homeruns across the indexes today, signaling further
accumulation. Positive breadth on the session came in at a 2:1
favorability for advancing issues, and only health and drug sectors were left in
the red. Heavy overall volume was dominated by over 7:1 on the Nasdaq, and over
5:1 on the NYSE. New 52-week highs also powered in at full impact levels,
creating the kind of environment we’ve been waiting for. Tim Truebenbach asked
for it yesterday, “Keep an
eye out for a 2% or greater move higher in a major index on very heavy volume.”,
and today we got it. The stocks on our watch list had fantastic days with one
key breakout, and just one distribution day.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed up
2.23% to
10,114.36. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating) closed up
2.19% to
2.19%.
The Nasdaq [COMPQ | COMPQ] closed up
4.27% to
2,047.04.
Â
| Â | NYSE | NASDAQ |
| Advancing Issues | 2,064 |
2,420 |
| Declining Issues | 1,102 |
1,274 |
| Advancing Volume | 1,460,518,000 |
2,386,779,000 |
| Declining Volume |
272,034,000 |
330,467,000 |
| Total Volume | 1,738,292,000 |
2,735,531,000 |
| New 52-week Highs | 84 | 74 |
| New 52-week Lows | 3 | 1 |
Â
Top sectors:
Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) up 7.66% to 585.80
Networking Index
(
$NWX.X |
Quote |
Chart |
News |
PowerRating)Â up
6.57% to 361.90.
Securities Broker/Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) up
6.37% to 504.30.
Losing sectors:
Pharmaceutical Index
(
$DRG.X |
Quote |
Chart |
News |
PowerRating) down 0.48% to 395.33
Nasdaq Insurance Index
(
$INSR.X |
Quote |
Chart |
News |
PowerRating) down
0.27% to 2326.36.
Sectors With New Highs:
Business Equipment – 1
Business Services – 3
Business Software and Services – 4
Computer Peripherals – 1
Computer Wholesale – 2
Medical Appliances and Equipment – 2
Medical Equipment and Wholesale – 2
Mecical Instruments and Supplies – 6
REIT Diversified – 1
REIT Office – 1
REIT Retail – 5
Restaurants – 7
Semiconductors Integrated Circuits – 4
Semiconductor Specialized – 3
Trucking – 3
Watch List Action
Pec
Solutions
(
PECS |
Quote |
Chart |
News |
PowerRating) showed weakness today as it only gained 0.26% on over two
times volume. Though there was a gain on the day, the stock experienced a good
deal of selling off its intraday high, putting it more in line with a
distribution day opposed to an accumulation day.
Now added to our “Breakout” list, THQ Inc
(
THQI |
Quote |
Chart |
News |
PowerRating) came in with a new
52-week high for a gain of 4.34% on almost twice average volume. From looking at
the volume pattern we can see there were some clear distribution days as it came
down its most recent downtrend, indicating a bit of weakness. Nevertheless, a
breakout is a breakout, and we will now watch its progress. The company
publishes and distributes entertainment software for various home game video
platforms, and had earnings for the last four Qtr’s come in at 133%, 207%, –
80%, and 52% from most recent to oldest. Ideally we want to see the earnings
improve. Analysts estimate a 26% growth rate in earnings for 2002.
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Recent Breakouts
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.
American Healthways Inc.
(
AMHC |
Quote |
Chart |
News |
PowerRating) up 1.33% on
above average volume for an accumulation day.
Copart Inc.
(
CPRT |
Quote |
Chart |
News |
PowerRating) up 1.75% on above average volume.
Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating) down 0.05% on
twice average volume for a distribution day.
Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating) up 7.64% on above
average volume.
Krispy Kreme Doughnuts
(
KKD |
Quote |
Chart |
News |
PowerRating) up 4.05% on
below average volume for an accumulation day.
MTR Gaming Group
(
MNTG |
Quote |
Chart |
News |
PowerRating) up 4.35% on
twice average
volume for an accumulation day.
Nvidia Corp.
(
NVDA |
Quote |
Chart |
News |
PowerRating) up 8.06% on above
average volume for an accumulation day.
Panera Bread Co.
(
PNRA |
Quote |
Chart |
News |
PowerRating) up 2.48% on average
volume.
Company Name |
Symbol |
12 Month RS |
Price |
Price Change |
Average Volume |
| American Healthways Inc. | ( AMHC | Quote | Chart | News | PowerRating) |
99 | 34.05 | + 0.45 | 214,800 |
| Copart Inc. | ( CPRT | Quote | Chart | News | PowerRating) |
94 | 36.00 | + 0.62 | 816,800 |
| Ebay | ( EBAY | Quote | Chart | News | PowerRating) |
92 | 69.95 | – 0.04 | 9,130,800 |
| Genesis Microchip | ( GNSS | Quote | Chart | News | PowerRating) |
99 | 63.54 | + 4.51 | 2,432,300 |
| Krispy Kreme Doughnuts | ( KKD | Quote | Chart | News | PowerRating) |
94 | 38.23 | + 1.49 | 854,000 |
| MTR Gaming Group | ( MNTG | Quote | Chart | News | PowerRating) |
96 | 12.46 | + 0.52 | 304,100 |
| Nvidia Corp. | ( NVDA | Quote | Chart | News | PowerRating) |
96 | 62.83 | + 4.69 | 9,986,100 |
| Panera Bread Co. | ( PNRA | Quote | Chart | News | PowerRating) |
96 | 49.91 | + 1.21 | 320,700 |
| Pec Solutions | ( PECS | Quote | Chart | News | PowerRating) |
99 | 38.51 | + 0.10 | 431,300 |
| THQ Inc. | ( THQI | Quote | Chart | News | PowerRating) |
96 | 63.29 | + 2.63 | 1,500,600 |
Â
Stocks Forming a Handle
Company Name |
Symbol |
12 Month RS |
Price |
Price Change |
Average Volume |
| None | Â | Â | Â | Â | Â |
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Stocks Building A Base
Company Name |
Symbol |
12 Month RS |
Price |
Price Change |
Average Volume |
| None | Â | Â | Â | Â | Â |
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