Thursday’s Stock Watch
The broader
markets closed
down after putting in an intra-day reversal. Volume was high, as the
major indexes made distribution days. Of note, the Internet Index
(
IIX.X |
Quote |
Chart |
News |
PowerRating)
moved above its 200-day MA for the first time since September 2000, though
was unable to close above this mark. We also had 10 members of the Restaurant
Sector hit new 52-week highs. Stocks on our watch list were mixed, with some
nice accumulations made.
Market breadth was just about
neutral, with
NYSE declining issues over advancing issues by a ratio of 1.05, and down volume
over up volume by a 1.38 ratio. Nasdaq declining issues over advancing
issues came in at 1.14, and down volume beat up volume by a 1.30 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed down
0.56% to
10,094.09. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed down
0.49% to
1,155.04.
The Nasdaq [$COMPQ |$COMPQ] closed down
0.53% to
2,044.89.
| NYSE | NASDAQ | |
| Advancing Issues | 1,529 |
1,693 |
| Declining Issues | 1,600 |
1,945 |
| Advancing Volume |
597,592,000 |
984,041,000 |
| Declining Volume |
825,238,000 |
1,283,928,000 |
| Total Volume | 1,438,181,000 |
2,293,039,000 |
| New 52-week Highs | 27 | 34 |
| New 52-week Lows | 7 | 0 |
Top sectors:
Morgan Stanley Healthcare Payor
Index
(
$HMO.X |
Quote |
Chart |
News |
PowerRating) up
0.60% at 320.52. 103.59.
GSTI Software Index
(
$GSO.X |
Quote |
Chart |
News |
PowerRating),
up 1.43% to 198.79.
Losing sectors:
North American
Telecommunications
Index
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) down 2.69% at 823.46.
Amex Hong Kong 30 Index
(
$HKX.X |
Quote |
Chart |
News |
PowerRating) down
2.31% to 566.16.
Sectors With New Highs:
Business – 6
Drugs – 3
Internet – 4
Medical – 5
Resorts and Casinos – 4
Restaurants – 10
Trucking – 4
Watch List Action
Krispy Kreme
(
KKD |
Quote |
Chart |
News |
PowerRating), fell 4.20% on average volume. This stock traded in
tandem with the major markets intra-day, and is once again threatening to erase
its gains since the breakout.
Direct Focus Inc.
(
DFXI |
Quote |
Chart |
News |
PowerRating), up 7.61% on over four times average volume for
an accumulation day, added to yesterday’s breakout move. This is what we like to
see in a new breakout candidate, and we hope to see this one turn into a leader.
Classified as a “Leisure Product,” the company is compared with Harley Davidson
(
HDI |
Quote |
Chart |
News |
PowerRating), and Polaris Industries
(
PII |
Quote |
Chart |
News |
PowerRating). Though motorcycles, snow
mobiles, and exercise equipment aren’t exact fits when it comes to market
comparisons, they are believed to represent similar distribution of spending
habits. HDI and PII have RS rankings of 72 and 82 respectively, and HDI has
quarterly earnings of 31% and 33% for the last two quarters. This gives DFXI
some backing in this market.
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 1.75%
on average volume for an accumulation day.
Copart Inc.
(
CPRT |
Quote |
Chart |
News |
PowerRating), down 0.27% on average volume.
Ebay
(
EBAY |
Quote |
Chart |
News |
PowerRating), down 0.96% on average
volume.
Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating), up 4.25% on
twice its average volume an accumulation day.
MTR Gaming Group
(
MNTG |
Quote |
Chart |
News |
PowerRating), down 2.04%
average volume for a distribution day.
Nvidia Corp.
(
NVDA |
Quote |
Chart |
News |
PowerRating), down 1.37% on average volume
for a distribution day.
Panera Bread Co.
(
PNRA |
Quote |
Chart |
News |
PowerRating), up 1.02% on average volume for an accumulation day.
PEC Solutions
(
PECS |
Quote |
Chart |
News |
PowerRating), down 0.74% on average
volume.
THQ Inc.
(
THQI |
Quote |
Chart |
News |
PowerRating), down 2.47% on above-average volume
fro a distribution day.
Company Name |
Symbol |
12 Month RS |
Price |
Price Change |
Average Volume |
| American Healthways Inc. | ( AMHC | Quote | Chart | News | PowerRating) |
96 | 29.50 | + 0.51 | 324,400 |
| Copart Inc. | ( CPRT | Quote | Chart | News | PowerRating) |
87 | 32.70 | – 0.09 | 666,700 |
| Direct Focus Inc. | ( DFXI | Quote | Chart | News | PowerRating) |
89 | 35.09 | + 2.48 | 689,900 |
| Ebay | ( EBAY | Quote | Chart | News | PowerRating) |
89 | 66.89 | – 0.65 | 7,238,200 |
| Genesis Microchip | ( GNSS | Quote | Chart | News | PowerRating) |
99 | 72.51 | + 2.96 | 2,597,800 |
| Krispy Kreme Doughnuts | ( KKD | Quote | Chart | News | PowerRating) |
91 | 42.05 | – 1.85 | 887,900 |
| MTR Gaming Group | ( MNTG | Quote | Chart | News | PowerRating) |
96 | 16.31 | – 0.34 | 487,300 |
| Nvidia Corp. | ( NVDA | Quote | Chart | News | PowerRating) |
98 | 67.61 | – 0.94 | 9,494,700 |
| Panera Bread Co. | ( PNRA | Quote | Chart | News | PowerRating) |
93 | 54.99 | + 0.56 | 284,700 |
| PEC Solutions | ( PECS | Quote | Chart | News | PowerRating) |
98 | 41.49 | – 0.31 | 600,700 |
| THQ Inc. | ( THQI | Quote | Chart | News | PowerRating) |
80 | 49.35 | – 1.25 | 1,593,500 |
Stocks Forming a Handle
Integra Lifesciences
(
IART |
Quote |
Chart |
News |
PowerRating) up 1.90% on
above-average
volume for an accumulation day.
Company Name |
Symbol |
12 Month RS |
Price |
Price Change |
Average Volume |
| Integra Lifesciences | ( IART | Quote | Chart | News | PowerRating) |
86 | 29.45 | + 0.55 | 297,700 |
Stocks Building A Base
Multimedia Games Inc.
(
MGAM |
Quote |
Chart |
News |
PowerRating), up 3.34% on
above-average volume for an accumulation day.
Company Name |
Symbol |
12 Month RS |
Price |
Price Change |
Average Volume |
| Multimedia Games Inc. | ( MGAM | Quote | Chart | News | PowerRating) |
99 | 38.89 | + 1.26 | 187,400 |