Wednesday’s Stock Watch
The broader
markets sold off today with recent
strength turning into weakness. Overall volume was average, with down volume
outpacing up volume by at least two to one across the indexes. There were a
decent number of new highs made, which was a subtle sign of strength amidst the
selling. Our watch list was, for the most part, quiet, with only one stock
experiencing a distribution day.
The
Dow Jones Industrial Average ($INDU)
closed down 0.75% to 9,901.38.
The S&P 500 ($SPX)
closed down 0.68% to 1,143.2.
The Nasdaq (COMPQ)
closed down 2.79% to 1,880.45.
| NYSE | NASDAQ | |
| Advancing Issues |
1,452 | 1,368 |
| Declining Issues |
1,682 | 2,250 |
| Advancing Volume |
468,190,000 | 362,389,000 |
| Declining Volume |
820,522,000 | 1,559,408,000 |
| Total Volume |
1,310,788,000 | 1,972,918,000 |
| New 52-week Highs |
19 | 15 |
| New 52-week Lows |
7 | 0 |
Top sector gainer:
Pharmaceutical Index ($DRG.X)
up 0.38% to 396.44.
Losing sectors:
Morgan Stanley Internet Idx ($MOX.X)
down -6.19% to 13.65.
Semiconductor Sector Index ($SOX.X)
down 5.85% to 494.07
Biotechnology Index (BTK.X)
down 3.82% to 584.1
Leading Sectors with new
highs:
Business Services – 2
Publishing Newspapers -2
Biotechnology – 2
PEC Solutions (PECS),
experienced its first distribution day since its breakout, down 5.91% on almost
three times average volume. The entire Internet sector was hit with selling
today. These selling days are where we will begin to see how sturdy the sector
is as far as leadership. We have been due for some profit taking.
One of our biggest losers of the day was MTR Gaming Group (MNTG),
down 4.23% on below average volume. Though this didn’t make the grade of a
distribution day, a gap down on the price action doesn’t bode well for this
racetrack and resort company.
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 even more cautious.
American Healthways Inc. (AMHC)
was up 0.58% on average volume.
EPIQ Systems (EPIQ)
was down 1.82% on above-average volume, erasing some of the gains of yesterday’s
accumulation day.
Genesis Microchip (GNSS)
was up 2.40% on average volume.
Krispy Kreme Doughnuts (KKD)
was down 1.10% on average volume.
Nvidia Corp. (NVDA)
was down 2.80% on average volume.
| Company Name |
Symbol | 12 Month RS |
Price | Price Change |
Average Volume |
| American Healthways Inc. |
(AMHC) | 99 | 42.85 | + 0.25 |
146,300 |
| Copart Inc. |
(CPRT) | 96 | 30.55 | + 0.56 |
806,000 |
| EPIQ Systems |
(EPIQ) | 98 | 37.73 | – 0.70 |
165,900 |
| Genesis Microchip |
(GNSS) | 98 | 45.07 | + 1.06 |
2,424,600 |
| Nvidia Corp. |
(NVDA) | 94 | 49.90 | – 1.44 |
9,960,700 |
| Panera Bread Co. |
(PNRA) | 96 | 46.57 | + 1.07 |
318,500 |
| Krispy Kreme Doughnuts |
(KKD) | 95 | 41.33 | – 0.46 |
801,000 |
| PEC Solutions |
(PECS) | 98 | 30.06 | – 1.89 |
371,900 |
Stocks Forming a Handle
THQ Inc. (THQI)
was down 0.16 at on below average volume, extending yesterday’s distribution
day.
| Company Name |
Symbol | 12 Month RS |
Price | Price Change |
Average Volume |
| THQ Inc. |
(THQI} | 96 | 54.11 | – 0.09 |
1,141,600 |
Stocks Building A Base
Metro One Telecomm Inc (MTON)
was down 0.13 on below average volume.
| Company Name |
Symbol | 12 Month RS |
Price | Price Change |
Average Volume |
| Metro One Telecomm Inc |
(MTON) | 96 | 37.65 | – 0.05 |
805,400 |
| MTR Gaming Group |
(MNTG) | 95 | 12.43 | – 0.55 |
669,300 |
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.