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.









cellPadding=0 width=”70%” border=1 height=”180″>

































NYSE size=2>NASDAQ
Advancing Issues
1,473

1,638

Declining Issues

1,598

1,742
Advancing Volume
1,079,221,000

755,349,000
Declining Volume

792,950,000

1,050,844,000

Total
Volume

1,888,038,000

1,835,258,000
New 52-week
Highs

3

1
New 52-week Lows
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).