Thursday’s Stock Watch…
The broader markets
sold off as the major indexes made
distribution days. The Nasdaq was the hardest hit as earnings from key companies,
including chip bellwether Intel
(
INTC |
Quote |
Chart |
News |
PowerRating), released disappointing earnings. Stocks on our
watch lists were mixed, with one stock experiencing heavy distribution.
Market breadth was negative, with
NYSE declining issues over advancing issues by a ratio of 1.77, and down volume
over up volume by a 4.28 ratio. Nasdaq declining issues over advancing
issues came in at 1.37, and down volume beat up volume by a 2.12 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed down
2.13% to
9,712.27. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed down
1.50% to
1,129.05.
The Nasdaq [$COMPQ |$COMPQ] closed down
2.82% to
1,944.46.
Issues
Volume
272,101,000
1,062,312,000
1,163,742,000
2,467,222,000
Volume
1,453,673,000
3,567,128,000
Highs
Lows
Top sectors:
Morgan Stanley Health Provider Index
(
$RXH.X |
Quote |
Chart |
News |
PowerRating)
was up
0.90% at 321.01.
Airline Index
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) was up 0.18% at 93.68.
Losing sectors:
TheStreet.com Internet Index
(
$DOT.X |
Quote |
Chart |
News |
PowerRating) was down
7.23% at 177.58.
Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)
was down
5.12% to 531.79.
Sectors With New
Highs:
Business Services — 8
Health Care — 3
Medical — 4
REITs — 10
Restaurants — 4
Watch List Action
Direct Focus Inc.
(
DFXI |
Quote |
Chart |
News |
PowerRating) fell another 0.97% on below-average volume. The
stock has been holding at its 10-day moving average.
As one of the day’s earnings causalities, eBay
(
EBAY |
Quote |
Chart |
News |
PowerRating) was down 6.38% on
more than twice average volume for a distribution day. The stock’s low of the day
was 5.9% below the stock’s 11/26 pivot buy point of 63.58. The gap down in the
price action does not bode well for the future of this stock, as it is just a
step away from triggering a 7% stop loss.
Recent Breakouts
size=2>We monitor the action of Recent Breakouts as an indicator of
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), down 1.34% on
average volume for a distribution day.
Copart Inc.
(
CPRT |
Quote |
Chart |
News |
PowerRating), up 2.09% on below-average
volume.
MTR Gaming Group
(
MNTG |
Quote |
Chart |
News |
PowerRating), down 3.08% on less-than-average
volume.
Nvidia Corp.
(
NVDA |
Quote |
Chart |
News |
PowerRating), down 3.90% on average
volume.
Panera Bread Co.
(
PNRA |
Quote |
Chart |
News |
PowerRating), up 0.74% on average volume
for an accumulation day.
PEC Solutions
(
PECS |
Quote |
Chart |
News |
PowerRating), down 4.45% on above-average
volume for its second distribution day in a row.
| 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>American Healthways Inc. | size=2> ( AMHC | Quote | Chart | News | PowerRating) | size=2>96 | 29.40 | – 0.40 | 318,900 |
| size=2>Copart Inc. | size=2> ( CPRT | Quote | Chart | News | PowerRating) | 77 | 32.60 | + 0.67 | 738,800 |
| size=2>Direct Focus Inc. | size=2> ( DFXI | Quote | Chart | News | PowerRating) | 94 | 33.67 | – 0.33 | 812,400 |
| size=2>eBay | size=2> ( EBAY | Quote | Chart | News | PowerRating) | 83 | 59.94 | – 4.09 | 6,366,500 |
| size=2>Genesis Microchip | size=2> ( GNSS | Quote | Chart | News | PowerRating) | size=2>99 | 64.40 | – 4.09 | 2,548,800 |
| size=2>MTR Gaming Group | size=2> ( MNTG | Quote | Chart | News | PowerRating) | 97 | 14.15 | – 0.45 | 510,400 |
| size=2>Nvidia Corp. | size=2> ( NVDA | Quote | Chart | News | PowerRating) | 96 | 62.79 | – 2.55 | 9,398,100 |
| size=2>Panera Bread Co. | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 95 | 57.09 | + 0.42 | 274,400 |
| size=2>PEC Solutions | size=2> ( PECS | Quote | Chart | News | PowerRating) | 98 | 30.69 | – 1.43 | 684,200 |
Stocks Forming a Handle
Integra Lifesciences
(
IART |
Quote |
Chart |
News |
PowerRating), up 0.06% on
less than half its 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>Integra Lifesciences | size=2> ( IART | Quote | Chart | News | PowerRating) | size=2>86 | 29.40 | + 0.02 | size=2>297,700 |
Stocks Building A Base
Multimedia Games Inc.
(
MGAM |
Quote |
Chart |
News |
PowerRating), up 2.54% 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 |
| size=2>Multimedia Games Inc. | size=2> ( MGAM | Quote | Chart | News | PowerRating) | size=2>99 | 35.05 | + 0.87 | size=2>187,400 |
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com