Wednesday’s Stock Watch

• March 11, 2003
• TradingMarkets Editors

We’re off to a negative
start for the week as the Dow and S&P 500 make new yearly lows, and
the NYSE and Nasdaq signal a distribution day. Now that we’re just a shot away
from testing the October lows, the question is asked “what could possibly turn
this thing around?”

Uncertainties over conflict with Iraq continue to
keep volume on the light side, while diplomatic efforts in the UN go by
unproductive. The US and UK announced they would consider altering their
deadline for Iraq disarmament, though would not hold out for the 45-day deadline
proposed by “swing” nations on the UN Security Council.

Stocks on our watch list continue to hold up.
Unfortunately research comes up empty for new quality stocks to add, though when
we do find them, it will be a sign that things are improving for the overall
market. 

From Tuesday’s action:

Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 1.40, and down volume over
up volume by a 2.50 ratio. Nasdaq declining issues over advancing issues came in
at 1.21, and down volume beat up volume by a 1.79 ratio.

Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed -0.58%
at 7,524.06. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) closed
-0.83%
at 800.73.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed
-0.53%
at 1,271.47.

Top sectors:

Internet, Gold and Silver, Software, Drugs, and
Fiber Optics.

Watch List Action:

Notching in an accumulation day Tuesday, we had Garmin Ltd.
(
GRMN |
Quote |
Chart |
News |
PowerRating). The
stock is trading comfortably above its 50-day moving average, and is showing
great relative strength against a distribution day for the overall markets.

Posting a slight gain on Tuesday, International Game Technology
(
IGT |
Quote |
Chart |
News |
PowerRating)
continues along its four month base. For the past four weeks the stock has made
four accumulation days and four distribution days.

Recent Breakouts

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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)	91	36.16	+0.34	1,070,100	28.35	35.70
Garmin Ltd.	( GRMN | Quote | Chart | News | PowerRating)	95	31.96	+0.43	459,200	23.46	32.07
International Game Technology	( IGT | Quote | Chart | News | PowerRating)	84	75.46	+0.66	1,189,500	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)	90	46.13	+0.21	1,696,200	46.89
CECO	( CECO | Quote | Chart | News | PowerRating)	85	46.68	-0.18	765,000	48.07
Expeditors International of Washington	( EXPD | Quote | Chart | News | PowerRating)	82	33.27	-0.20	740,600	34.89
UCBH Holdings	( UCBH | Quote | Chart | News | PowerRating)	77	41.36	+0.26	177,100	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	Â	Â	Â	Â	Â	Â

Daniel Beighley

If you are new to the “IT” strategy, be sure to
take a look at our

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).