Thursday’s Stock Watch
The major
averages all turned down today as a disappointing retail sales report
set the mood on Wall Street. Slightly above average volume on the NYSE marked
its second distribution day in a row, which is usually not a good sign for the
market. Healthcare, biotechnology, and pharmaceuticals represented the only
strength of the day, with networking, semiconductors, and airline stocks deep in
the red. The new 52-week highs list continues to shrink. Stocks on our watch
list were mostly down, with one of our recent breakouts putting in a
distribution day.
Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 1.52, and down volume over
up volume by a 2.36 ratio. Nasdaq declining issues over advancing issues came in
at 1.37, and down volume beat up volume by a 3.94 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed down 1.22%Â to
10,501.85. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed
down 0.98% to
1,154.09.
The Nasdaq [$COMPQ |$COMPQ] closed
down 1.84% to
1,862.05.
Â
1,264
1,481
Issues
1,919
2,036
393,883,000
329,462,000
930,822,000
1,299,262,000
Volume
1,339,057,000
1,647,680,000
Highs
27
19
0
5
Top sectors:
Morgan Stanley
Healthcare Provider Index
(
$RXH.X |
Quote |
Chart |
News |
PowerRating) up 2.42% at 315.45.
Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) up
1.59% at 517.75.
Losing sectors:
Networking
Index
(
$NWX.X |
Quote |
Chart |
News |
PowerRating) down 4.77% at 249.42.
GSTI Multimedia Networking Index
(
$GIP.X |
Quote |
Chart |
News |
PowerRating) down
4.56% to 102.53.
Watch List Action:
Multimedia Games
(
MGAM |
Quote |
Chart |
News |
PowerRating) backed off today with a small loss of 0.152% on
below average volume. The stock traded down with the others in its sector.
Group 1
Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating) had its first big loss since breaking out as it fell 5.38%
on almost twice average volume for a distribution day. We like to see less
volume endorse the down days, a distribution day is never a good sign, though
some profit taking here is understandable.Â
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 5.38% on almost twice average volume for a
distribution day.
size=2>Multimedia Games Inc.
(
MGAM |
Quote |
Chart |
News |
PowerRating), down 0.15% on below-average volume.
size=2>Nvidia Corp.
(
NVDA |
Quote |
Chart |
News |
PowerRating), down 1.81% on below-average volume.
size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), up 3.94%
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 | Pivot | 52-Week High |
Group 1 Automotive | ( GPI | Quote | Chart | News | PowerRating) | 96 | 40.05 | – 2.28 | 314,200 | 33.14 | 41.50 |
size=2>Multimedia Games Inc. | size=2> ( MGAM | Quote | Chart | News | PowerRating) | size=2>99 | 32.65 | – 0.05 | 361,100 | 30.91 | 33.74 |
| size=2>Nvidia Corp. | size=2> ( NVDA | Quote | Chart | News | PowerRating) | 85 | 53.60 | – 0.99 | 11,155,300 | 52.67 | 72.66 |
| size=2>Panera Bread Co. | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 94 | 57.16 | + 2.17 | 427,900 | 14.55 | 64.94 |
Stocks Forming a Handle
DRS Technologies
(
DRS |
Quote |
Chart |
News |
PowerRating), down 2.88% on
average volume for a distribution day. This one is long over due for a
breakout, and will be coming off this report.
| 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) | 95 | 38.05 | – 1.13 | 231,600 | 42.90s |
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 |
None | Â | Â | Â | Â | Â |
Â
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com
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