Wednesday’s Stock Watch

  • April 15, 2003
  • TradingMarkets Editors


The market is off to a
positive start for the week as the major indexes put in accumulation
days on Tuesday. The Dow and S&P 500 closed firmly above their 200 simple day
moving averages, and the Nasdaq above its 20-day simple moving average.



With earnings to the forefront of market
perspective, this is a key week with 1/3 of the Dow Industrials reporting.
Tuesday proved to be a mixed bag as General Motors expressed uncertainty about
meeting its targets for the year, though IBM posted better than expected
revenue, which translated into a nice upside move for the stock. Also standing
out, chip stock Novellus issued a profit warning that had the semiconductor
index open lower though showed strength as it ended the day in positive
territory. We’re always looking for leadership from the semis.



Stocks on our watch list are doing well. We’re
seeing new 52-week highs, and we’ve added a couple of selections to the
"handles" list.



From Tuesday’s action:



Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 1.91, and up volume over
down volume by a 2.05 ratio. Nasdaq advancing issues over declining issues came
in at 1.30, and up volume beat down volume by a 1.45 ratio.




Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed +0.61%
at 8,402.36. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) closed
+5.58%
at 890.81.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed
+0.43%
at 1,391.01.







cellPadding=0 width=”70%” border=1 height=”185″>

































  NYSE size=2>NASDAQ
Advancing Issues
2,021
1,742

Declining  Issues
1,053
1,324
Advancing Volume
956,330,000
737,450

Declining Volume

428,789,000
514,564

Total
Volume

1,396,882,000
1,280,966,000
New 52-week
Highs
32
32
New 52-week Lows
7
2

Strongest Sectors:

Media (cable/satellite), Internet -(e-commerce), Internet (service providers),
Internet (content), Semiconductors, Telecoms (fiber optics).

Watch List Action:


Matching its 52-week high, our most recent breakout UCBH Holdings
(
UCBH |
Quote |
Chart |
News |
PowerRating)
put in an accumulation day as it moved on from its 2 for 1 stock split made last
week. Though the stock has recently put in three distribution days, new highs
here will be very encouraging.





Hitting an all time high, Career Education Corp.
(
CECO |
Quote |
Chart |
News |
PowerRating) moved
further from its pivot buy point, though did not produce volume over 50% its
average needed for a buy. Corinthian Colleges
(
COCO |
Quote |
Chart |
News |
PowerRating) made a similar
move as it passed through its pivot buy. We’ll see if these stocks pull back and
setup again, but so far these are duds to us.





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)
91
53.35
+0.31
1,940,400
46.89
53.75

Coach Inc.

(
COH |
Quote |
Chart |
News |
PowerRating)
94
38.28
-0.14
1,154,900
28.35
39.99

Expeditors International of Washington

(
EXPD |
Quote |
Chart |
News |
PowerRating)
78
35.57
+1.57
1,034,900
34.54
38.00

Garmin Ltd.

(
GRMN |
Quote |
Chart |
News |
PowerRating)
96
38.20
+1.40
517,400
23.46
38.25

International Game Technology

(
IGT |
Quote |
Chart |
News |
PowerRating)
87
81.53
+1.10
1,307,900
74.84
87.20

UCBH Holdings
UCBH Holdings
86
24.49
+0.16
155,600
22.60
24.54

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

Boston Scientific

(
BSX |
Quote |
Chart |
News |
PowerRating)
91
43.11
+0.39
2,469,600
47.65

Chicos FAS

(
CHS |
Quote |
Chart |
News |
PowerRating)
86
22.10
-0.38
1,393,700
23.05

Career Education Corp.

(
CECO |
Quote |
Chart |
News |
PowerRating)
89
53.90
+0.76
816,700
52.70

Corinthian Colleges

(
COCO |
Quote |
Chart |
News |
PowerRating)
90
42.15
+1.22
1,023,500
42.04

Centex Corp.

(
CTX |
Quote |
Chart |
News |
PowerRating)
82
59.36
+0.36
1,291,000
59.80

Hovnanian

(
HOV |
Quote |
Chart |
News |
PowerRating)
85
38.31
+0.45
487,800
38.45

New Century Financial

(
NCEN |
Quote |
Chart |
News |
PowerRating)
88
33.35
+0.40
486,100
34.90

New to the list are BSX and CTX.


CRCO, COCO, and HOV have all hit their pivot
buys, though did not produce the volume needed for a buy trigger.


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
 
 
 
 
 
 

Daniel Beighley


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Report is posted on
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Tim Truebenbach (Tuesdays and Thursdays), and

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