Wednesday’s Stock Watch
The major indexes have been
losing a little ground for the past couple of days, though volume remains light.
The NYSE posted slight distribution Tuesday.
Nothing has changed since Friday’s report. Continue
to keep an eye on Mark Boucher‘s
Top
RS and ER List and
Bottom RS and ER List, with readings above 20 on either list indicating
strength in that direction. Also watch the new 52-week highs and lows lists for
leadership.
Stocks on our watch list are hanging in there. ROST
and EXPE are still poised for breakouts. This is still considered a shaky
environment to go long in. Weekend research produced no new names to add to our
lists.
From Tuesday’s action:
Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 1.26, and down volume over
up volume by a 1.53 ratio. Nasdaq declining issues over advancing issues came in
at 1.36, and down volume beat up volume by a 2.67 ratio.
Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed -0.13%
at 8474.78. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed -0.40% at
896.75.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed
-1.37% at
1,374.50.
1,361
1,393
Declining Issues
1,707
1,850
505,673,000
451,391,000
792,800,000
1,148,492,000
Total
Volume
1,304,888,000
1,613,525,000
Highs
4
11
11
5
Top sectors:
Short-term: Internet, Telecoms, Software.
Long-term: Gold, Defense, Consumer.
Watch List Action:
Gaining ground against an overall negative market, International Gaming Tech
(
IGT |
Quote |
Chart |
News |
PowerRating)
continues to be our strongest performer. This manufacturer of computerized
casino gaming machines is confirmed with other companies in the sector, such as
Boyd Gaming
(
BYD |
Quote |
Chart |
News |
PowerRating) and Station Casinos
(
STN |
Quote |
Chart |
News |
PowerRating).
Now being moved to our “handles” list, Garmin Ltd.
(
GRMN |
Quote |
Chart |
News |
PowerRating) provides
navigation, communications, and information devices for global positioning
systems (GPS). The company’s last quarterly earnings were up 57% from a
year ago, and its sales were up 24%. The company also meets our 17% return on equity requirement, is in a top performing group, and is
confirmed by Inter Tel
(
INTL |
Quote |
Chart |
News |
PowerRating) which is also strong in the group. On a
negative note, we’d like to see its earnings more consistent. With heavy
accumulation along the right side of its base, we’ll see if this one can do
anything on a breakout.
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 | 41.61 | -0.79 | 2,615,000 | 39.60 | 46.15 |
Coach Inc. | ( COH | Quote | Chart | News | PowerRating) | 95 | 31.50 | -0.31 | 979,000 | 29.80 | 33.09 |
Hovnanian Enterprises | ( HOV | Quote | Chart | News | PowerRating) | 97 | 31.70 | -0.95 | 876,900 | 33.56 | 40.56 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 91 | 77.23 | +0.58 | 1,077,800 | 75.47 | 78.40 |
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) | 68 | 42.99 | -0.10 | 755,600 | 47.80 |
Expedia | ( EXPE | Quote | Chart | News | PowerRating) | 96 | 70.14 | -3.40 | 2,378,800 | 76.44 |
Garmin Ltd. | ( GRMN | Quote | Chart | News | PowerRating) | 86 | 23.10 | -0.03 | 161,500 | 23.46 |
Mentor Corp. | ( MNTR | Quote | Chart | News | PowerRating) | 87 | 39.74 | -0.38 | 240,300 | 41.50 |
Ross Stores Inc. | ( ROST | Quote | Chart | News | PowerRating) | 92 | 42.87 | -0.80 | 1,096,000 | 45.59 |
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 |
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com
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).