Wednesday’s Stock Watch
The major indexes posted
minor distribution on average volume Tuesday. With two accumulation
days marking follow through last week, the Bulls appear to have one up on the
bears. To keep a bullish bias, we want to see volume drop off on the down days.
We’d also like to see stocks meeting our top fundamental and technical criteria
setting up in bases, but they’re not there. New 52-week highs have yet to show
up in force, though the new lows list is quiet.
From Tuesday’s action:
Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 2.10, and down volume over
up volume by a 2.18 ratio. Nasdaq declining issues over advancing issues came in
at 1.45, and down volume beat up volume by a 1.14 ratio.
The Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed -1.03%
at 8450.16. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed -1.06% at
890.16.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed
+-1.29% at
1,292.77.
Â
958
1,338
Declining Issues
2,070
1,909
450,901,000
743,223,000
1,018,480,000
936,944,000
Total
Volume
1,476,631,000
1,701,465,000
Highs
3
7
11
4
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) was hit with distribution Tuesday after its sector peer
Career Education Corp.
(
CECO |
Quote |
Chart |
News |
PowerRating) reported earnings that disappointed. The
stock was halted by its 50-day moving average, and still remains within a
bullish channel above its breakout point.
Still in the game since breaking out, Mid Atlantic Medical Services
(
MME |
Quote |
Chart |
News |
PowerRating)
posted distribution Tuesday. The stock is a member of the strong insurance
sector, and remains comfortably above its major moving averages. For the past
three weeks, the stock has made three accumulation days, and two distribution
days. If the stock pulls back we’d like to see it on lighter volume.
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 | 41.92 | -3.73 | 2,469,600 | 39.60 | 46.15 |
Brown & Brown | ( BRO | Quote | Chart | News | PowerRating) | 82 | 32.30 | +0.38 | 243,300 | 31.59 | Â 37.00 |
Education Mgt. Co. | ( EDMC | Quote | Chart | News | PowerRating) | 92 | 41.87 | -3.48 | 366,800 | 41.87 | 46.65 |
Hovnanian Enterprises | ( HOV | Quote | Chart | News | PowerRating) | 99 | 38.25 | -1.15 | 755,200 | 32.90 | 40.56 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 95 | 72.85 | -2.65 | 978,500 | 66.70 | 75.70 |
Mid Atlantic Medical Services | ( MME | Quote | Chart | News | PowerRating) | 98 | 42.00 | -0.39 | 529,900 | 38.83 | 43.20 |
Wellpoint Health Network | ( WLP | Quote | Chart | News | PowerRating) | 94 | 85.63 | -0.72 | 1,351,200 | 79.05 | 85.63 |
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 |
Commerce Bancorp. | ( CBH | Quote | Chart | News | PowerRating) | 82 | 44.52 | -1.28 | 750,900 | 47.80 |
CBH is not the prettiest of handles, but it’s all
we have now.
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 |
Chicos FAS | ( CHS | Quote | Chart | News | PowerRating) | 97 | 19.74 | -0.32 | 1,297,200 |
Coach Inc. | ( COH | Quote | Chart | News | PowerRating) | 97 | 29.40 | -0.02 | 935,500 |
Ross Stores Inc. | ( ROST | Quote | Chart | News | PowerRating) | 92 | 43.91 | +0.31 | 1,014,400 |
We have added CHS and COH to the list as the have made their way back from
when recently posted as breakouts on this report.
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com
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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).