Wednesday’s Stock Watch
The major indexes managed to
close positive for a
change, with the NYSE and Nasdaq exchanges showing accumulation, though market
breadth was actually negative. Price action reversed during the
session, but lacked a strong close that would give a better indication of a
potential bottom.
New 52-week lows still dominate the all too quiet
highs list, as Mark Boucher‘s
Bottom RS and ER List continues to outnumber the
Top
RS and ER List.
Stocks on our watch list are hanging in there,
though this choppy market is making for sloppy patterns. Until we see signs of a
durable bottom endorsed by institutional players, forget about buying. Use this
report as a measure of how well stocks possessing top fundamental and technical
properties are doing, as it is also a good measure of the overall market.
From Tuesday’s action:
Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 2.92, and down volume over
up volume by a 5.85 ratio. Nasdaq declining issues over advancing issues came in
at 2.37, and down volume beat up volume by a 4.57 ratio.
The Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) closed -2.44% at
7528.40. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed -2.24% at 800.58.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed -2.20% at 1139.90.
1,473
1,638
Declining Issues
1,598
1,742
1,079,221,000
755,349,000
792,950,000
1,050,844,000
Total
Volume
1,888,038,000
1,835,258,000
Highs
3
1
120
50
Top sectors:
Health Services and Medical Appliances & Equipment.
Losing sectors:
Semiconductors, Major Airlines, Software, Telecoms, Internet,
Homebuilders, and Tobacco.
Watch List Action:
Apollo Group
(
APOL |
Quote |
Chart |
News |
PowerRating) went on a tear Tuesday as it posted heavy accumulation.
The stock has made a nice recovery from its recent sell off, and closed
comfortably above its major moving averages.
International Gaming Technology
(
IGT |
Quote |
Chart |
News |
PowerRating) also posted accumulation as it closed
above its major moving averages. This stock came close to dropping back into its
base, but is now attempting to push higher.
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) | 93 | 43.91 | +3.76 | 2,302,600 | 39.60 | 45.37 |
Education Mgt. Co. | ( EDMC | Quote | Chart | News | PowerRating) | 89 | 43.97 | +0.63 | 350,600 | 43.19 | 46.65 |
Hovnanian Enterprises | ( HOV | Quote | Chart | News | PowerRating) | 97 | 32.10 | +0.57 | 703,600 | 33.56 | 40.56 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 89 | 68.10 | +2.86 | 891,100 | 66.70 | 70.65 |
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 | 36.79 | +0.07 | 455,000 | 38.83 |
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) | 74 | 30.25 | +1.26 | 226,500 |
Wellpoint Health Network | ( WLP | Quote | Chart | News | PowerRating) | 92 | 76.54 | -0.69 | 1,393,000 |
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com
If you are new to the “IT” strategy, be sure to
take a look at our
intermediate-term online trading course.
Intermediate-Term Trader’s
Report is posted on
Tuesdays and Fridays. For other intermediate-term commentary, be sure to read
Mark Boucher (Fridays),
Tim Truebenbach (Tuesdays and Thursdays), and
Gary Kaltbaum (Mondays and Thursdays).