Wednesday’s Stock Watch

  • October 15, 2002
  • TradingMarkets Editors


Tuesday’s huge upside day
gave us an indication of follow-through from Thursday’s potential bottom,
as heavy volume brought the indexes back to their 50-day moving averages.
Follow-through is a sign of institutional sponsorship for a potential bottom,
but it in no way means we’re in a new bull market. The markets are due for a
pull back, and from the bullish perspective we’d like to see it occur on lighter
volume.



We’d also like to see more stocks meeting our strict
technical and fundamental properties, but they’re not there. Not yet. There are
two new stocks on the “building a base” list, while the remaining stocks on our
“breakout list” are giving mixed results.



From Tuesday’s action:



Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 2.90, and up volume over
down volume by a 7.01 ratio. Nasdaq advancing issues over declining issues came
in at 3.01, and up volume beat down volume by a 9.72 ratio.




The Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) closed +4.80% at
8255.68. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed

+4.73% at
881.21.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed
+5.07% at
1,282.44.





 




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

































  NYSE size=2>NASDAQ
Advancing Issues
2,323
2,500

Declining  Issues
782
855
Advancing Volume
1,567,175,000
1,503,267,000
Declining Volume

232,458,000
438,364,000

Total
Volume

1,821,716,000
1,979,424,000
New 52-week
Highs
14
11
New 52-week Lows
6
3

Top sectors:

Health Services and Medical Appliances & Equipment.

Losing sectors:


Semiconductors, Major Airlines, Software, Telecoms, Internet,
Homebuilders, and Tobacco.

Watch List Action:


As one of our recent breakouts, Wellpoint Health Networks
(
WLP |
Quote |
Chart |
News |
PowerRating) continues to
push north on above average volume. This health management organization’s
fundamentals are representative of its sector’s strength, with its most recent
quarterly earnings up 45%, and its revenue up 37% on a year ago basis. As the
stock approaches new-52-week highs, it may pull back to form another handle.





New to our “building a base” list, Ross Stores
(
ROST |
Quote |
Chart |
News |
PowerRating) is moving nicely with
accumulation up the right side of a “W” bottom. This discount clothing retailer
has been growing its revenue consistently for the past nine years, and saw its
most recent quarterly earnings up 41% from a year ago. 





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)
96
45.05
+2.02
2,419,900
39.60
45.88

Brown & Brown

(
BRO |
Quote |
Chart |
News |
PowerRating)
88
33.00
+0.80
238,000
31.59
 37.00

Education Mgt. Co.

(
EDMC |
Quote |
Chart |
News |
PowerRating)
94
44.33
-0.25
351,300
44.58
46.65

Hovnanian Enterprises

(
HOV |
Quote |
Chart |
News |
PowerRating)
98
34.96
+2.06
963,300
32.90
40.56

International Game Technology

(
IGT |
Quote |
Chart |
News |
PowerRating)
94
69.85
+2.49
904,300
66.70
71.95

Mid Atlantic Medical Services

(
MME |
Quote |
Chart |
News |
PowerRating)
98
41.77
+1.52
480,900
38.83
43.15

Wellpoint Health Network

(
WLP |
Quote |
Chart |
News |
PowerRating)
95
84.80
+3.96
1,302,800
79.05
86.27

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

None
 
 
 
 
 
 

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

Commerce Bancorp.

(
CBH |
Quote |
Chart |
News |
PowerRating)
82
45.69
+1.00
736,600

Ross Stores Inc.

(
ROST |
Quote |
Chart |
News |
PowerRating)
89
41.12
+1.47
998,900

href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com


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