Wednesday’s Stock Watch

• November 13, 2001
• TradingMarkets Editors

The broader markets
made solid gains, with all major indexes notching in
accumulation days. The Nasdaq has now rallied 33% from its September low, but is
still lacking the desired leadership for our standards. Technology remains king,
though its durability is in question with a lack of high quality fundamental
and technical patterns setting up. A key ingredient missing once again today was
new breakouts to 52-week highs. The day’s gap up was attributed to news that the airline disaster yesterday was an accident, not a terrorist
attack, and news of the Taliban opposition retreating from the Afghan capital of
Kabul. I think everyone would like to see this war wind down in our favor,
though our country’s leadership has advised that we are probably in this war on
terrorism for the long haul.

The Dow Jones Industrial Average

(
$INDU |
Quote |
Chart |
News |
PowerRating) closed up
2.06% to
9,750.95. The S&P 500
[$SPX| $SPX]
closed up
1.86% to
1,139.09.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed up
2.82% to
1,892.11.

 

 

 

 

 

 

Top sector gainers

Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating)
up 5.19% to
584.35

Airline Index
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) up
4.89% to
68.41.

Semiconductor Sector Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)
up 4.23% to
541.29.

Securities Broker Dealer Index
(
$XBD.X |
Quote |
Chart |
News |
PowerRating)

Losing sectors:

None.

Leading Sectors
with new highs:

Semiconductors – 2

Medical Instruments and
Supplies – 1

Medical Laboratories and
Research – 1

Moving against the day’s trend was Copart Inc.
(
CPRT |
Quote |
Chart |
News |
PowerRating), carrying over from
yesterday’s distribution, with a 2.38% decline.

From our Stocks Forming a Handle List,
PEC solutions
(
PECS |
Quote |
Chart |
News |
PowerRating) made an
accumulation day up 4.82%. This company is a part of the Internet sector, which has
been making nice gains lately.

Recent Breakouts

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 be even more cautious.

Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating) continues recovering from its big distribution day last Thursday
with another gain of 2%.

Nvidia Corp.
(
NVDA |
Quote |
Chart |
News |
PowerRating)
was unable to carry over yesterday’s gains with a slight loss of 0.82%..

Panera Bread Co.
(
PNRA |
Quote |
Chart |
News |
PowerRating)
made an accumulation day up 2.14% on above average volume.

Taro Pharmaceuticals
(
TARO |
Quote |
Chart |
News |
PowerRating) was unable to carry over yesterday’s gains with a loss of 3.52%.

Company Name	Symbol	12 Month RS	Price	Price Change	Average Volume
Copart Inc.	( CPRT | Quote | Chart | News | PowerRating)	96	29.87	– 0.73	711,500
Genesis Microchip	( GNSS | Quote | Chart | News | PowerRating)	98	47.80	+ 0.94	2,334,400
Nvidia Corp.	( NVDA | Quote | Chart | News | PowerRating)	94	54.18	– 0.45	12,030,900
Panera Bread Co.	( PNRA | Quote | Chart | News | PowerRating)	96	45.68	+ 0.96	310,100
Taro Pharmaceuticals	( TARO | Quote | Chart | News | PowerRating)	98	38.58	– 1.41	783,100

Stocks Forming a Handle

Handles:

Integra LifeSciences Hld.
(
IART |
Quote |
Chart |
News |
PowerRating) shied away from its
50-day moving average again, down 1.26%.

Krispy Kreme Doughnuts
(
KKD |
Quote |
Chart |
News |
PowerRating) had an accumulation day,
up a nice 4.75%.

THQ Inc.
(
THQI |
Quote |
Chart |
News |
PowerRating) made gains on average volume, up
1.78%.

Cups:

None.

Company Name	Symbol	12 Month RS	Price	Price Change	Average Volume
Integra LifeSciences Hld.	( IART | Quote | Chart | News | PowerRating)	96	28.00	– 0.36	346,800
Krispy Kreme Doughnuts	( KKD | Quote | Chart | News | PowerRating)	95	37.92	+ 1.72	681,600
PEC Solutions	( PECS | Quote | Chart | News | PowerRating)	98	25.89	+ 1.19	299,300
THQ Inc.	[THQI|THQI}	96	54.76	+ 0.96	1,400,400
Career Education Corp.	( CECO | Quote | Chart | News | PowerRating)	92	28.79	– 2.71	1,097,200

Stocks Building A Base

Company Name	Symbol	12 Month RS	Price	Price Change	Average Volume
None

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.