Tuesday’s Stock Watch
The broader
markets made nice gains today with the Dow and S&P 500 advancing
on resistance and the Nasdaq closing above its
resistance. Volume today left much to be desired, though ahead of a key earnings
announcement by Cisco Systems, and the Federal Reserve Board meeting tomorrow,
some trepidation was expected. What the Bulls want to see is the market pack in
some real strength to signify a real bull market. Drifting higher is nice, but
without the conviction of heavy volume days with at least nine-times up volume
to down volume, and consistent breakouts to new highs, this market is suspect.
The Dow closed up 1.26% to 9,441.03, the S&P 500 closed up 1.43% to 1,102.71, and the Nasdaq closed up 2.74% to
1,793.65.
Nasdaq up volume dominated down
volume by a rate of more than 5 to 1. Total volume for the index was
1,705,442,000. Advancing issues were 2,135 and declining issues were 1,414.
There were 18 new 52-week highs, and no new lows. Leadership today was strongest
in the technology sector.
The top sectors were:
Morgan Stanley Internet Idx
(
$MOX.X |
Quote |
Chart |
News |
PowerRating) gaining 4.96%.
Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) moved higher 4.56%
High Technology Index
(
$PSE.X |
Quote |
Chart |
News |
PowerRating)
tacked on 3.04%
Semiconductor Sector Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) by 2.78%.
Computer Technology Index
(
$XCI.X |
Quote |
Chart |
News |
PowerRating) up 2.44%.
Off the volume alert list is Euronet
Worldwide
(
EEFT |
Quote |
Chart |
News |
PowerRating). The past three days have shown high volume on this stock
as it breaks out of a cup and handle formation. The stock has a TradingMarkets
3-month RS rating
of 98.
Off our watch list THQ Inc
(
THQI |
Quote |
Chart |
News |
PowerRating)
performed very well today, gaining 4.35% on double volume, right out of the cup
and handle formation.
Stocks Breaking
out on High Volume with a Relative Strength of 80 or Better:
Company Name |
Symbol |
Relative Strength |
Price |
Average Volume |
Today’s Volume |
| Euronet Worldwide | ( EEFT | Quote | Chart | News | PowerRating) |
98 | 16 | 172,100 | 958,100 |
| General Mills Inc. |
( GIS | Quote | Chart | News | PowerRating) |
85 | 50.20 | 2,154,500 | 7,706,700 |
| Stericycle Inc. | ( SRCL | Quote | Chart | News | PowerRating) |
92 | 50.91 | 184,200 | 543,600 |
| Amarin Corp. | ( AMRN | Quote | Chart | News | PowerRating) |
99 | 26.54 | 187,000 | 517,100 |
Stocks Building
A Base With A Minimum Relative Strength of 80.
Company Name |
Symbol |
Relative Strength |
Price |
Average Volume |
Today’s Volume |
| Krispy Kreme Doughnuts |
( KKD | Quote | Chart | News | PowerRating) |
95 | 35.95 | 723,800 | 350,500 |
| PEC Solutions | ( PECS | Quote | Chart | News | PowerRating) |
98 | 25.16 | 287,600 | 314,200 |
| THQI Inc. | ( THQI | Quote | Chart | News | PowerRating) |
96 | 55.99 | 1,268,400 | 3,128,800 |
Stocks forming a
Handle
Company Name |
Symbol |
Relative Strength |
Price |
Average Volume |
Today’s Volume |
| Taro Pharmaceutical |
( TARO | Quote | Chart | News | PowerRating) |
98 | 43.17 | 722,100 | 177,100 |
| Independence Community Bank |
( ICBC | Quote | Chart | News | PowerRating) |
91 | 24.67 | 603,000 | 194,200 |
Remember that all securities are
risky. In any trade, you should always reduce your risk by adjusting position
size and placing open protective stops where you will sell your long or
cover your short in case the market turns against you. For an introduction to
combining price stops with position sizing, see our lesson,
Risky
Business.