Tuesday’s Stock Watch


The major averages turned
in negative performances for the week,
as the NYSE and Nasdaq put in
two days of distribution a piece (only one clear for the NYSE). Disappointing
earnings and economic news have put the bears in control, as ongoing tensions
with Iraq and Korea add to the air of caution. The three major averages are now
trading below their 50-day moving averages, and from the weekly charts, it is
clear that price action has once again turned south at the trend lines.



Market breadth remains mostly stagnant. New 52-week
Highs and Lows continue to produce relatively low numbers, while the Highs list
maintains a slight edge over the Lows. Mark Boucher‘s
Top
RS and ER List
turned in a surprise bullish session Thursday, with a reading
of 20. The

Bottom RS and ER List
remains nearly non-existent.



Stocks from our watch list put in distribution days
for the week, though held ground. Remember, we’re only looking for stocks meeting
our top technical and fundamental criteria as taught in our

intermediate-term online trading course
. The search goes on!



From Friday’s action:



Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 1.94, and down volume over
up volume by a 3.19 ratio. Nasdaq declining issues over advancing issues came in
at 2.03, and down volume beat up volume by a 4.91 ratio.




Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)

closed -1.27
%
at 8,586.74. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)

closed
-1.40% at
901.78.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating)
closed -3.33
% at
1,376.20.






cellPadding=0 width=”70%” border=1 height=”187″>

































  NYSE size=2>NASDAQ
Advancing Issues
1,013

1,072

Declining  Issues

2,071

2,139
Advancing Volume
320,646,000

158,799,000
Declining Volume

984,685,000

1,342,150,000

Total
Volume

1,318,160,000

1,628,234,000
New 52-week
Highs

11

15
New 52-week Lows
5

4

Top sectors:

Fiber Optics, Internet, Computer Security, Telecoms, and Gold
and Silver.

Watch List Action:


From our "breakout" list, and now in a base, International Gaming Technology
(
IGT |
Quote |
Chart |
News |
PowerRating)

appears as though it may break out again. After putting in a major day of
distribution on 01-08, the stock has crept up to recover the loss. If the stock
does break out, it is not considered an ideal buy due to the small and
choppy pattern.





In a pullback, Garmin Ltd.
(
GRMN |
Quote |
Chart |
News |
PowerRating)
has given off red flags in the form of
four distribution days made in the past two weeks. This is not what we want to
see going forward, so be sure to hold on to any profits.





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)

88

30.26

-0.87

872,300

28.35

35.70

Garmin Ltd.


(
GRMN |
Quote |
Chart |
News |
PowerRating)

95

30.26

-0.57

404,400

23.46

31.35

Hovnanian Enterprises


(
HOV |
Quote |
Chart |
News |
PowerRating)

84

33.29

-1.01

597,000

33.56

40.56

International Game Technology


(
IGT |
Quote |
Chart |
News |
PowerRating)

87

77.18

-0.04

869,800

66.70

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

Expedia


(
EXPE |
Quote |
Chart |
News |
PowerRating)

85

66.19

+0.88

2,432,900

78.72

Apollo Group


(
APOL |
Quote |
Chart |
News |
PowerRating)

84

42.87

-0.69

2,258,700

46.57

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

 

 

 

 

 

 

href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com


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).