Tuesday’s Stock Watch
Â
After hitting new yearly
lows during the week, the major indexes staged impressive rallies for Thursday
and Friday, bringing the Dow and S&P 500 to slight gains for the
week, and the Nasdaq a slight loss. The NYSE and Nadaq exchanges logged one
clear day of distribution apiece.
Though a good deal of short covering needs to be
factored into the rally, the bellwether semiconductors established decent
leadership off positive earnings news from Analog Devices and Nvidia. We always
look to the semiconductors and broker/dealers for leadership. Let’s see if the
leadership will last. Meanwhile sentiment remains low as tension with Iraq and
Korea takes its toll. Much speculation is now centered on when an attack will
occur, not if.
Market breadth is now decidedly bearish, with New
52-week Lows dominating the Highs, and Mark Boucher‘s
Bottom RS and ER List giving a solid week of downside bias with 20+
readings vs. a quiet
Top
RS and ER List.
What’s left of our watch list is holding strong. As
always, the search goes on for new candidates meeting our top fundamental and
technical criteria.
From Friday’s action:
Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 1.76, and up volume over
down volume by a 3.63 ratio. Nasdaq advancing issues over declining issues came
in at 1.64, and up volume beat down volume by a 5.72 ratio.
Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed +2.05%
at 7,908.80. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed +2.14% at
834.89.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed +2.56% at
1,310.17.
1,932
1,997
Declining Issues
1,110
1,193
1,030,990,000
1,115,101,000
297,959,000
184,852,000
Total
Volume
1,342,520,000
1,307,154,000
Highs
4
4
51
23
Top sectors:
Gold and Silver, Internet, Software, Cable TV/Satelite,
and Drugs.
Watch List Action:
Potentially in the process of forming a new base, Coach
(
COH |
Quote |
Chart |
News |
PowerRating) is currently
squeezed between its 5-day and 200-day moving averages. For the past month, the
stock has made five accumulation days, and three distribution days.
Garmin Ltd.
(
GRMN |
Quote |
Chart |
News |
PowerRating) posted a major accumulation day on Wednesday after the
company beat its earnings expectations by $0.07. Where so many “hot stocks”
report earnings ahead of expectations then sell off due to high expectations,
GRMN only attracted more interest.
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.
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 |
Coach Inc. | ( COH | Quote | Chart | News | PowerRating) | 82 | 31.78 | +1.42 | 991,100 | 28.35 | 35.70 |
Garmin Ltd. | ( GRMN | Quote | Chart | News | PowerRating) | 95 | 30.87 | +1.11 | 489,500 | 28.66 | 32.07 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 80 | 75.87 | +1.80 | 1,121,100 | 74.84 | 80.10 |
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 |
Apollo Group | ( APOL | Quote | Chart | News | PowerRating) | 88 | 44.73 | +0.44 | 1,955,600 | 45.60 |
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 | Pivot |
None | Â | Â | Â | Â | Â | Â |
If you are new to the “IT” strategy, be sure to
take a look at our
intermediate-term online trading course.
Intermediate-Term Traders
Report is posted on
Tuesdays and Fridays. For other intermediate-term commentary, be sure to read
Mark Boucher (Fridays),
Tim Truebenbach (Tuesdays and Thursdays), and
Gary Kaltbaum (Mondays and Thursdays).