Tuesday’s Stock Watch
The markets
took to the upside today as positive earnings from Dow components and
a better than expected housing starts number seemed to inspire the bulls. Volume
came in slightly below average as the semiconductors and technology led the
action. Using last Wednesday as a potential bottoming point, we are looking for
the market to follow through on the rally within the next seven trading days.
Ideally we want to see this happen on less than optimistic news. Stocks on our
watch list were mixed, with one new addition.
Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 1.63, and up volume over
down volume by a 2.70 ratio. Nasdaq advancing issues over declining issues came
in at 1.17, and up volume beat down volume by a 3.90 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed up
1.78%Â to
10,145.71. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed up
1.76% to
1,109.07.
The Nasdaq [$COMPQ |$COMPQ] closed up
2.63% to
1,769.87.
Â
1,924
1,937
Issues
1,180
1,662
956,720,000
1,292,535,000
355,302,000
332,249,000
Volume
1,326,764,000
1,649,966,000
Highs
54
18
1
9
Top sectors:
Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) up
5.84% at 538.72.
GSTI Software Index
(
$GSO.X |
Quote |
Chart |
News |
PowerRating) up
3.89% at 158.27.
Losing sectors:
Gold and Silver Index Morgan Stanley Healthcare Index Watch List Action: Genesis Microchip Sure enough the day we add this to the report, it breaks out. Group 1
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), down 1.77% at 63.53.
(
$HMO.X |
Quote |
Chart |
News |
PowerRating), down 0.51% at 483.44.
(
GNSS |
Quote |
Chart |
News |
PowerRating) was our biggest gainer on the day as it shot up
11.41% on over twice average volume for an accumulation day. The stock was
threatening to sink below its pivot buy point though could potentially stage a
turn around here. 
Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating) broke out of its handle on almost twice its daily average
volume for a 5.82a% gain. This company which owns and operates auto dealerships
in nine states has its last two quarters of earnings growth coming in at 39% and
66% respectively, and has been able to increase its earning for five consecutive
years. The stock’s potential is endorsed by Circuit City’s Carmax
(
KMX |
Quote |
Chart |
News |
PowerRating),
though is considered an extreme risk in this questionable environment. We will
begin to monitor its progress as a breakout. 
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.
size=2>Copart Inc.
(
CPRT |
Quote |
Chart |
News |
PowerRating), down 2.49% on slightly above average
volume for a distribution day.
size=2>MTR Gaming Group
(
MNTG |
Quote |
Chart |
News |
PowerRating), up 4.26% on
below average volume.
size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), up 1.09% on
below average volume.
size=2>Nvidia Corp.
(
NVDA |
Quote |
Chart |
News |
PowerRating), up 7.83% on above 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 |
| size=2>Copart Inc. | size=2> ( CPRT | Quote | Chart | News | PowerRating) | 85 | 20.29 | – 0.52 | 1,014,700 | 8.60 | 25.82 |
Group 1 Automotive | ( GPI | Quote | Chart | News | PowerRating) | 91 | 33.83 | + 1.86 | 282,200 | 33.14 | 34.99 |
| size=2>Genesis Microchip | size=2> ( GNSS | Quote | Chart | News | PowerRating) | 90 | 43.45 | + 4.45 | 3,361,400 | 38 | 74.90 |
| size=2>MTR Gaming Group | size=2> ( MNTG | Quote | Chart | News | PowerRating) | 96 | 16.86 | + 0.69 | 584,900 | 14.30 | 17.16 |
| size=2>Nvidia Corp. | size=2> ( NVDA | Quote | Chart | News | PowerRating) | 88 | 53.83 | + 3.91 | 9,673,200 | 52.67 | 72.66 |
| size=2>Panera Bread Co. | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 91 | 52.50 | + 0.57 | 370,400 | 14.55 | 64.94 |
Stocks Forming a Handle
American Medical Systems Holdings
(
AMMD |
Quote |
Chart |
News |
PowerRating),
up 4.93% on low volume.
DRS Technologies
(
DRS |
Quote |
Chart |
News |
PowerRating), down 3.53% 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 |
American Medical Systems Holdings | ( AMMD | Quote | Chart | News | PowerRating) | 92 | 23.60 | + 1.11 | 303,300 |
DRS Technologies |