Tuesday’s Stock Watch
Distribution
was the endnote to today’s selling across the indexes. There were no
stock sectors closing positive, with technology driving the Nasdaq 100 to a new
two-month low, and breakdowns showing a slight edge over
breakouts. Stocks on our watch list were mostly down, with one selection finding
its way off our list.
Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 2.34, and down volume
over up volume by a 6.64 ratio. Nasdaq declining issues over advancing issues came in
at 2.77, and down volume beat up volume by a 5.86 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed down
2.22% to
9,687.09. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed down
2.92% to
1,855.5.
The Nasdaq [$COMPQ |$COMPQ] closed down
2.90% to
1,093.47.
937
958
Issues
2,192
2,650
184,015,000
255,787,000
1,222,247,000
1,498,453,000
Volume
1,421,618,000
1,762,823,000
Highs
15
10
16
17
Top sectors:
None
Losing sectors:
Networking
Index
(
$NWX.X |
Quote |
Chart |
News |
PowerRating) down
8.45%
at 283.39,
Dow Jones Internet Commerce Index
(
$ECM.X |
Quote |
Chart |
News |
PowerRating) down
7.46% to 48.95.
Sectors With New
Highs:
No data available today.
Watch List Action
Direct Focus Inc.
(
DFXI |
Quote |
Chart |
News |
PowerRating) dropped 6.42% on almost twice-average volume
for a distribution day. The stock violated its pivot buy point of 33.34 and
bounced off its 50-day moving average. The stock was down 4.5% from its buy
point at its lowest level of the day.
From our “Stocks Forming a Handle” list, Integra Lifesciences
(
IART |
Quote |
Chart |
News |
PowerRating)
closed the day down 3.22% on almost twice-average volume for a distribution day.
The stock hit a new 52-week high, though volume did not
support a breakout at that point. What we had today was a potential breakout
gone bad. For an excellent read on
what makes a good handle in these setups, please click the link for the
lesson.
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>American Healthways Inc.
(
AMHC |
Quote |
Chart |
News |
PowerRating), down 2.85% on very low volume.
This one is coming off the list.
size=2>Copart Inc.
(
CPRT |
Quote |
Chart |
News |
PowerRating), up 2.12% on below-average volume.
size=2>Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating), down 8.02% on average volume for a
distribution day.
MTR Gaming Group
(
MNTG |
Quote |
Chart |
News |
PowerRating), down 1.94% on half its
average
volume for a distribution day.
size=2>Nvidia Corp.
(
NVDA |
Quote |
Chart |
News |
PowerRating), down 4.74% on average volume for a
distribution day.
Panera Bread Co.
(
PNRA |
Quote |
Chart |
News |
PowerRating), up 5.34% on over
twice its average volume for an accumulation day.
size=2>PEC Solutions
(
PECS |
Quote |
Chart |
News |
PowerRating), unchanged on half its average volume. At
its low today the stock was 8.7% below its 26.92 pivot point.
| 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>American Healthways Inc. | size=2> ( AMHC | Quote | Chart | News | PowerRating) | 94 | 25.16 | – 0.74 | 326,300 |
| size=2>Copart Inc. | size=2> ( CPRT | Quote | Chart | News | PowerRating) | 85 | 23.53 | + 0.49 | 1,053,000 |
| size=2>Direct Focus Inc. | size=2> ( DFXI | Quote | Chart | News | PowerRating) | 92 | 32.90 | – 2.26 | 837,100 |
| size=2>Genesis Microchip | size=2> ( GNSS | Quote | Chart | News | PowerRating) | 98 | 55.00 | – 4.80 | 3,162,000 |
| size=2>MTR Gaming Group | size=2> ( MNTG | Quote | Chart | News | PowerRating) | 96 | 16.03 | – 0.31 | 605,100 |
| size=2>Nvidia Corp. | size=2> ( NVDA | Quote | Chart | News | PowerRating) | 95 | 61.09 | – 3.04 | 9,036,400 |
| size=2>Panera Bread Co. | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 97 | 64.65 | + 3.28 | 285,500 |
| size=2>PEC Solutions | size=2> ( PECS | Quote | Chart | News | PowerRating) | 86 | 25.00 | + 0.00 | 704,400 |
Stocks Forming a Handle
Integra Lifesciences
(
IART |
Quote |
Chart |
News |
PowerRating) DOWN 3.22% on twice
its 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 |
| size=2>Integra Lifesciences | size=2> ( IART | Quote | Chart | News | PowerRating) | 89 | 30.79 | – 1.10 | 332,800 |
Stocks Building A Base
size=2>Multimedia Games Inc.
(
MGAM |
Quote |
Chart |
News |
PowerRating), down 4.74%% on over twice its
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 |
| size=2>Multimedia Games Inc. | size=2> ( MGAM | Quote | Chart | News | PowerRating) | size=2>99 | 40.72 | – 2.03 | 192,300 |
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com