Tuesday’s Stock Watch

• July 1, 2002
• TradingMarkets Editors

The markets fell today as
average volume on the NYSE and the year’s heaviest volume on the Nasdaq
qualified for distribution days. The only positive sectors were gold
and silver and foreign stocks, while Internet, biotechnology, airline, and
computer technology stocks suffered heavy losses. New 52-week highs were thin,
with only banking making ten or more as a group, while the new 52-week lows list
was dominated by telecommunications, drugs, software, and electronics. Our watch
lists were mixed, with two new additions made to our “building a base” list.

Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 1.86, and down volume over
up volume by a 4.36 ratio. Nasdaq declining issues over advancing issues came in
at 2.12, and down volume beat up volume by a 16.91 ratio.

The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed down 1.45% at 9108.55. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed down 2.15% at 968.59.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed down
4.05% at 1403.83.

 

Top sectors:

Gold and Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), up 5.23% at
75.20, and the

FTSE Eurotop 100 Index
(
$HUI.X |
Quote |
Chart |
News |
PowerRating) up 0.20% at
2381.65.

Losing sectors:

TheStreet.com Internet Index
(
$DOT.X |
Quote |
Chart |
News |
PowerRating), down 8.09% at
88.26.

Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) down 7.30% at
32.34.

Sectors with Most New 52-Week Highs (10 or more):

Banking – 13

Watch List Action:

Apollo Group Inc.
(
APOL |
Quote |
Chart |
News |
PowerRating) fell 0.938% on above average volume for a
distribution day. We’re going to move this over to the “handles” list, though
keep in mind any breakouts in this difficult market environment should be bought
with extreme caution. There have been very few successful breakouts in the
intermediate-term time frame over the past year. Be sure to read our

lesson on handles for insight on what to look for in this stage of the cup
and handle pattern.

Winnebago Systems
(
WGO |
Quote |
Chart |
News |
PowerRating)  gained 0.364% on average volume today. The
distribution made a couple of weeks ago is a red flag, which is why we’re
looking for accumulation as the stock moves up the right side of its base.

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.

Christopher & Banks
(
CHBS |
Quote |
Chart |
News |
PowerRating), down 1.37% on

average volume.

Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating), down 5.76% on

above-average volume for an distribution day.

size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), down 3.71%

on below-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	Pivot	52-Week High
Christopher & Banks	( CHBS | Quote | Chart | News | PowerRating)	94	41.72	– 0.58	346,500	33.60	42.45
Group 1 Automotive	( GPI | Quote | Chart | News | PowerRating)	76	35.95	– 2.20	274,200	33.14	50.08
size=2>Panera Bread Co	size=2> ( PNRA | Quote | Chart | News | PowerRating)	93	33.19	– 1.28	924,600	33.12	36.80

Stocks Forming a Handle

Apollo Group Inc.
(
APOL |
Quote |
Chart |
News |
PowerRating), down 0.93% on

above-average volume for a distribution 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	Pivot
Apollo Group Inc.	( APOL | Quote | Chart | News | PowerRating)	84	39.05	– 0.37	-0.23	2,210,600

Stocks Building A Base

Coach Inc.
(
COH |
Quote |
Chart |
News |
PowerRating), down 4% on below average
volume.

Dollar Tree Stores Inc.
(
DLTR |
Quote |
Chart |
News |
PowerRating), down 5.96%
on above average volume. This is new to the list.    

DR Horton Inc.
(
DHI |
Quote |
Chart |
News |
PowerRating), up 2.27% on below-average volume.

Penn National Gaming
(
PENN |
Quote |
Chart |
News |
PowerRating), down 8.70% on
below average volume. This is new to the list.

Winnebago Industries
(
WGO |
Quote |
Chart |
News |
PowerRating), up 0.36% on

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
Coach Inc.	( COH | Quote | Chart | News | PowerRating)	91	52.70	– 2.20	611,700
Dollar Tree Stores Inc.	( DLTR | Quote | Chart | News | PowerRating)	91	37.06	– 2.35	1,323,600
DR Horton Inc.	( DHI | Quote | Chart | News | PowerRating)	88	26.48	+ 0.45	1,508,400
Penn National Gaming	( PENN | Quote | Chart | News | PowerRating)	88	16.53	– 1.62	639,200
Winnebago Industries	( WGO | Quote | Chart | News | PowerRating)	90	44.16	+ 0.16	209,900

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.