Thursday’s Stock Watch
Despite
flirting with positive levels earlier in the day, the major averages closed in
negative territory. Above average volume on the NYSE qualified for a
second consecutive day of distribution. Internet stocks were the big gainers,
with airline, telecoms, healthcare, and gold and silver putting in modest
advances. Semiconductors, broker/dealers, and computer hardware stocks made the
biggest losses. Sectors with the most new 52-week highs held their trend with
banking, retail, and utilities topping the list. Stocks on our watch list were
mixed, with our lone selection on the “base building” list slowing down.
Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 1.10, and down volume over
up volume by a 1.47 ratio. Nasdaq declining issues over advancing issues came in
at 1.22, and down volume beat up volume by a 1.52 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed down 0.58% at 10030.43 The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed down 0.71% at 1093.13.
The Nasdaq [$COMPQ |$COMPQ] closed down
down 0.98% at 1713.30.
Â
1,504
1,596
Issues
1,652
1,948
539,806,000
740,267,000
791,417,000
1,128,426,000
Total
Volume
1,343,733,000
1,900,159,000
Highs
37
26
6
22
Top sectors:
CBOE
Internet
Index
(
$INX.X |
Quote |
Chart |
News |
PowerRating) Â up 2.45% at
97.09.
Airline
Index
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) up 1.87% at 97.24.
Losing sectors:
Disk Drive Index
(
$DDX.X |
Quote |
Chart |
News |
PowerRating), down 4.28% at
99.38.
Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating),
down 3.77% at 534.26.
Sectors with Most New 52-Week Highs:
Banking – 22
Retail – 18
Utilities – 17
Leisure – 16
Health Services – 12
Diversified Services – 11
Materials and Construction – 11
Insurance – 10
(This list will now be kept with a minimum of 10 per group.)
Watch List Action:
Erasing yesterday’s losses, Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating) gained 5.12% on
above average volume as it made a new 52-week high. Yesterday’s heavy
distribution is negative sign, but in the end these stocks will do whatever they
want to.
Beazer Homes
(
BZH |
Quote |
Chart |
News |
PowerRating) slowed down, though closed the day out with a 1.27%
gain on heavy volume. As said earlier in this report, we would like to see a
nice handle form in here to create a buying opportunity. The home builders are
exhibiting great strength as a group, with NVR Inc.
(
NVR |
Quote |
Chart |
News |
PowerRating) and Ryland Group
(
RYL |
Quote |
Chart |
News |
PowerRating)
both possessing superior superior RS and ER grades.
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.
Ameristar Casninos
(
ASCA |
Quote |
Chart |
News |
PowerRating), down 2.58% on
above-average volume.
Christopher & Banks Corporation
(
CHBS |
Quote |
Chart |
News |
PowerRating), down
1.54%
on below-average volume for a distribution day.
Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating), up 5.11% on above-average volume.
size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), down 1.25%
on 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 |
Ameristar Casninos | ( ASCA | Quote | Chart | News | PowerRating) | 95 | 32.05 | – 0.85 | 187,000 | 30.90 | 32.55 |
Christopher & Banks | ( CHBS | Quote | Chart | News | PowerRating) | 88 | 37.02 | – 0.58 | 524,200 | 33.60 | 39.25 |
Group 1 Automotive | ( GPI | Quote | Chart | News | PowerRating) | 91 | 45.20 | + 2.20 | 304,800 | 42.23 | 43.69 |
size=2>Panera Bread Co | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 92 | 67.75 | – 0.86 | 405,800 | 66.74 | – 0.82 |
Stocks Forming a Handle
| 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 |
None | Â | Â | Â | Â | Â | Â |
Stocks Building A Base
Beazer Homes
(
BZH |
Quote |
Chart |
News |
PowerRating), up 1.26%
on almost twice 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 |
Beazer Homes | ( BZH | Quote | Chart | News | PowerRating) | 82 | 91.04 | + 1.14 | 539,000 |
Â
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com
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