Tuesday’s Stock Watch
The markets
were able to extend Friday’s rally, with the three major indexes
making decent gains on the day. Light volume moved Internet and semiconductor
issues higher, with healthcare stocks closing red. Big caps fared well, with the
NYSE putting up a nice forty-nine for 52-week highs. Ideally we would like to see more
volume support the up-days, and until then positive days are suspect. Stocks on
our watch list were mixed, with two new candidates added to the “Stocks Forming
a Handle” list. Given this market environment, any entry on a breakout would be
considered high risk, though it is important to watch the progress for clues of
market strength.
Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 2.09, and up volume over
down volume by a 4.18 ratio. Nasdaq advancing issues over declining issues came in
at 1.29, and down volume beat up volume by a 2.24 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed up
1.44% to
9,884.78. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed up
1.39% to
1,846.64.
The Nasdaq [$COMPQ |$COMPQ] closed up
1.53% to
1,846.64.
2,105
2,008
Issues
1,005
1,552
912,105,000
1,062,304,000
218,305,000
473,655,000
Volume
1,139,731,000
1,545,433,000
Highs
49
18
7
6
Top sectors:
GSTI Multimedia Networking Index
(
$GIP.X |
Quote |
Chart |
News |
PowerRating)
up 5.34% to 110.94.
CBOE Internet Index
(
$INX.X |
Quote |
Chart |
News |
PowerRating) up 4.45% to 118.80.
Losing sectors:
Gold and Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating)
down 5.36% at 64.58.
Morgan Stanley Healthcare Index
(
$HMO.X |
Quote |
Chart |
News |
PowerRating) down 1.07% to 489.18.
Sectors With New
Highs:
There were no consolidations of 3 or more in today’s new 52-week highs list.
Watch List Action
New to our “Stocks Forming a Handle” list is American Medical Systems
Holdings
(
AMMD |
Quote |
Chart |
News |
PowerRating), which gained 0.167% on twice average volume today. This
company supplies medical devices to physicians specializing in the treatment of
urological disorders, and has its last two quarters of earnings coming in at
400% and 267% respectively. As a member of the top-performing medical
instruments group, with an expected growth rate of 107% for the year, it has met
our requirements for a potential breakout candidate. Though the stock appears to
be in the very first stages of forming a handle, it is not quite the healthy
specimen we’d like to see. A “shakeout” period as well as a downward sloping
handle of at least a week, would indicate better potential for a breakout. We
will continue to monitor the stock’s progress.
Also new to our “Stocks Forming a Handle” list is DRS Technologies
(
DRS |
Quote |
Chart |
News |
PowerRating),
which gained 0.23% on low volume. This designer, manufacturer, and marketer of
high technology products that serve the government and worldwide commercial
markets has its last two quarters of earnings coming in at 70% and 36%
respectively, and is also a member of the top-performing electrical military
systems sector. So far the stock has been in its handle for over a week, and is
just a little over 15% off of its 52-week high. We will continue to watch this
one for a breakout as well.
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 1.93% on low volume.
size=2>Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating), up 1.86% on average volume.
MTR Gaming Group
(
MNTG |
Quote |
Chart |
News |
PowerRating), up .47% on
below-average volume.
size=2>Nvidia Corp.
(
NVDA |
Quote |
Chart |
News |
PowerRating), up 5.52% on above-average volume.
Panera Bread Co.
(
PNRA |
Quote |
Chart |
News |
PowerRating), up 2.91% 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 | Pivot | 52-Week High |
| size=2>Copart Inc. | size=2> ( CPRT | Quote | Chart | News | PowerRating) | 88 | 22.85 | – 0.45 | 1,045,200 | 8.60 | 25.82 |
| size=2>Genesis Microchip | size=2> ( GNSS | Quote | Chart | News | PowerRating) | 94 | 50.16 | + 0.92 | 3,363,900 | 38 | 74.90 |
| size=2>MTR Gaming Group | size=2> ( MNTG | Quote | Chart | News | PowerRating) | 95 | 14.92 | + 0.07 | 574,100 | 14.30 | 17.16 |
| size=2>Nvidia Corp. | size=2> ( NVDA | Quote | Chart | News | PowerRating) | 94 | 60.91 | + 3.19 | 8,464,900 | 52.67 | 72.66 |
| size=2>Panera Bread Co. | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 96 | 59.35 | + 1.68 | 347,700 | 14.55 | 64.94 |
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 |
American Medical Systems Holdings | ( AMMD | Quote | Chart | News | PowerRating) | 94 | 24.04 | + 0.04 | 257,600 |
DRS Technologies | ( DRS | Quote | Chart | News | PowerRating) | 94 | 38.80 | + 0.09 | 260,100 |
Stocks Building A Base
size=2>Multimedia Games Inc.
(
MGAM |
Quote |
Chart |
News |
PowerRating), up 3.70% on over twice its
average volume for an accumulation 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 |
| size=2>Multimedia Games Inc. | size=2> ( MGAM | Quote | Chart | News | PowerRating) | size=2>99 | 40.60 | + 1.45 | 210,800 |
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com