Tuesday’s Stock Watch

  • February 14, 2003
  • TradingMarkets Editors


 



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.






cellPadding=0 width=”70%” border=1 height=”185″>

































  NYSE size=2>NASDAQ
Advancing Issues
1,932
1,997

Declining  Issues
1,110
1,193
Advancing Volume
1,030,990,000
1,115,101,000
Declining Volume

297,959,000
184,852,000

Total
Volume

1,342,520,000
1,307,154,000
New 52-week
Highs
4
4
New 52-week Lows
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
 
 
 
 
 
 

Daniel Beighley


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).