Wednesday’s Stock Watch

• January 14, 2003
• TradingMarkets Editors

The markets continue
range-bound, with the Dow and S&P 500 between their 50-day and 200-day moving
averages, and the Nasdaq attempting to establish leadership above its
major averages. Now that earnings season has begun, we’re looking for a trend to
be established that will take us out of the range. Bad retail numbers shaken off
are another sign of strength. Technically, the indexes look poised for base
breakouts, though a failure here may create a sharp move down.

We’ve seen some distribution on a couple of stocks
from our watch list these past two days, while weekend research has produced no
new names to add to this report. Remember, we’re only looking for stocks meeting
our top technical and fundamental criteria, as taught in our

intermediate-term online trading course.

From Tuesday’s action:

Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 1.53, and up volume over
down volume by a 2.11 ratio. Nasdaq advancing issues over declining issues came
in at 1.42, and up volume beat down volume by a 2.59 ratio.

Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed +0.64%
at 8,842.62. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed +0.58% at
931.66.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed +1.03% at
1,461.01.

Top sectors:

Fiber Optics, Internet, Computer Security, and Gold
and Silver.

Watch List Action:

Garmin Ltd.
(
GRMN |
Quote |
Chart |
News |
PowerRating) put in a second day of distribution Monday, though is
holding ground in a bullish pullback. Ideally we will see selling volume dry up
in here.

Coach Inc.
(
COH |
Quote |
Chart |
News |
PowerRating) has put in its second major distribution day in a row. The
stock has dropped below its 50-day moving average and a trading range. We’ve
been tracking this stock as a successful breakout for over four months now. Any
profits here should be secured, we might soon be saying bye to this one.

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)	89	30.35	-1.61	872,300	28.35	35.70
Garmin Ltd.	( GRMN | Quote | Chart | News | PowerRating)	95	30.95	+0.25	404,400	23.46	31.35
Hovnanian Enterprises	( HOV | Quote | Chart | News | PowerRating)	83	33.05	-0.49	597,000	33.56	40.56
International Game Technology	( IGT | Quote | Chart | News | PowerRating)	85	76.70	+0.18	869,800	66.70	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
Expedia	( EXPE | Quote | Chart | News | PowerRating)	90	67.56	-0.32	2,432,900	78.72
Apollo Group	( APOL | Quote | Chart | News | PowerRating)	81	43.23	-0.31	2,258,700	46.57

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
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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).