Wednesday’s Stock Watch
The major averages are in
negative territory for the week, though Tuesday’s session made for
accumulation on the NYSE and Nasdaq exchanges as a negative consumer confidence
report was shaken off. This most recent consumer confidence number is
actually the worst in almost a decade, so it’s encouraging to see it shrugged.
Overall volume remains below average as geopolitical issues keep many players
sidelined.
From our watch lists, we have Coach and
Apollo group in bases, and poised to break out. These stocks have ignored the
overall market action of late, and possess the top fundamental and technical
qualities that make them good breakout candidates. Once again, the key
ingredient missing from this setup is a healthy market. It’s likely we won’t
have any real clarity in the markets until the Iraq hurdle is cleared.
From Tuesday’s action:
Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 1.39, and up volume over
down volume by a 1.61 ratio. Nasdaq advancing issues over declining issues came
in at 1.10, and up volume beat down volume by a 1.10 ratio.
Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed +0.65%
at 7,909.50. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed +0.71% at
838.57.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed
+0.49% at
1,328.98.
1,689
1,645
Declining Issues
1,370
1,530
698,518,000
595,742,000
737,979,000
751,402,000
Total
Volume
1,451,882,000
1,401,126,000
Highs
17
3
38
23
Top sectors:
Internet, Gold and Silver, Software, Drugs, and
Fiber Optics.
Watch List Action:
Putting in a major accumulation day, Coach Inc.
(
COH |
Quote |
Chart |
News |
PowerRating) raised its earnings
guidance after the close yesterday. This stock has been on our “breakout” list
since early last September, and has held its ground against a weak overall
market. The stock has formed a new base, and maintains its top fundamentals
qualities. Watch for another breakout above 35.
Also with an accumulation day, Apollo Group
(
APOL |
Quote |
Chart |
News |
PowerRating) remains poised to break
out of its handle. For the past four months, the stock has made eight clear
accumulation days vs. no distribution days. Contracting volatility in the handle
suggest this one’s about to move soon. We are setting the pivot buy at 45.84 (10
cents above its most recent consolidation), though remember this is not an ideal
market for long candidates.
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 |
Coach Inc. | ( COH | Quote | Chart | News | PowerRating) | 85 | 33.97 | +2.27 | 991,100 | 28.35 | 35.70 |
Garmin Ltd. | ( GRMN | Quote | Chart | News | PowerRating) | 96 | 33.60 | -0.21 | 489,500 | 23.46 | 32.07 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 81 | 76.19 | +1.12 | 1,121,100 | 74.84 | 80.10 |
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 |
Apollo Group | ( APOL | Quote | Chart | News | PowerRating) | 89 | 44.88 | +0.21 | 1,955,600 | 45.84 |
CECO | ( CECO | Quote | Chart | News | PowerRating) | 88 | 45.67 | -0.39 | 882,100 | 48.07 |
Expeditors International of Washington | ( EXPD | Quote | Chart | News | PowerRating) | 73 | 33.77 | +0.29 | 909,300 | 34.54 |
UCBH Holdings | ( UCBH | Quote | Chart | News | PowerRating) | 79 | 41.88 | +0.07 | 181,300 | 45.20 |
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 | Pivot |
None |
If you are new to the “IT” strategy, be sure to
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intermediate-term online trading course.
Intermediate-Term Traders
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).