Wednesday’s Stock Watch
The markets may be poised for a short-term bounce, but there is no reason to get
excited about the overall market. Tuesday’s big day to the upside remains overshadowed by Monday’s distribution; and market breadth remains dominated by
52-week lows over highs.
If we see a follow through day in the form of a high volume up day beginning in
three days, we’ll have evidence of a sturdier bottom.
Currently the stocks on this report are putting in mixed results. We’ve removed
a couple of selections due heavy selling, though we had another breakout, and
selections remaining on the breakout list have been hanging tough.
From Tuesday’s action:
Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 2.21, and up volume over
down volume by a 3.95 ratio. Nasdaq advancing issues over declining issues came
in at 1.25, and up volume beat down volume by a 3.06 ratio.
The Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) closed +4.56% at
7538.79. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed +4.00% at 847.92.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed +3.55% at 1213.78.
Â
2,099
1,875
Declining Issues
972
1,482
1,278,497,000
1,317,133,000
397,802,000
348,003,000
Total
Volume
  1,684,195,000
1,691,655,000
Highs
14
6
26
30
Top sectors:
Health Services, Medical Appliances & Equipment, and
Leisure-Gaming.
Losing sectors:
Semiconductors, Major Airlines, Software, and Telecoms.
Watch List Action:
As our oldest breakout on the list, Apollo Group
(
APOL |
Quote |
Chart |
News |
PowerRating) has been doing well
despite a poor market. For the past three weeks, the stock has made two
accumulation days, and five distribution days.
New to our breakout list, Education Management Corp.
(
EDMC |
Quote |
Chart |
News |
PowerRating) broke out on
9/25 with volume over 40% its average. This provider of proprietary post
secondary education put in an impressive day of accumulation on 10/01, and we
hope to see it move higher from here.
Giving heed to Education Management Corp’s cause, Corinthian Colleges
(
COCO |
Quote |
Chart |
News |
PowerRating)
continues to hit new highs. Both are members of the commercial services/schools
sector, which has been a top performing group of late.
Â
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.
| 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 |
Apollo Group | ( APOL | Quote | Chart | News | PowerRating) | 94 | 45.25 | +1.82 | 2,311,800 | 39.60 | 45.37 |
Alliant Techsystems | ( ATK | Quote | Chart | News | PowerRating) | 88 | 71.50 | +2.25 | 432,100 | 69.95 | 76.93 |
Corinthian Colleges | ( COCO | Quote | Chart | News | PowerRating) | 98 | 38.44 | +0.70 | 762,400 | 34.69 | 38.75 |
Education Mgt. Co. | ( EDMC | Quote | Chart | News | PowerRating) | 89 | 46.06 | +1.79 | 329,500 | 43.19 | 46.65 |
Hovnanian Enterprises | ( HOV | Quote | Chart | News | PowerRating) | 97 | 35.70 | +1.90 | 665,700 | 33.56 | 40.56 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 93 | 69.99 | +0.85 | 980,900 | 66.70 | 70.65 |
Coach Inc.
(
COH |
Quote |
Chart |
News |
PowerRating) has been tossed off the
list after it sold off more than 7% from its pivot buy point.
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 | Pivot |
Mid Atlantic Medical Services | ( MME | Quote | Chart | News | PowerRating) | 97 | 36.90 | +0.70 | 470,900 | 38.27 |
Bed Bath & Beyond
(
BBBY |
Quote |
Chart |
News |
PowerRating) has been
removed from the list after its sold off 15% from the high of its handle.
Stocks Building A Base
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 |
Brown & Brown | ( BRO | Quote | Chart | News | PowerRating) | 73 | 31.25 | +1.25 | 247,700 |
Wellpoint Health Network | ( WLP | Quote | Chart | News | PowerRating) | 88 | 73.99 | +0.69 | 1,496,400 |
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com
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Intermediate-Term Trader’s Report is posted on
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Mark Boucher (Fridays),
Tim Truebenbach (Tuesdays and Thursdays), and
Gary Kaltbaum (Mondays and Thursdays).