Wednesday’s Stock Watch
The major averages have
made great strides to the upside for the last few sessions. The NYSE
has posted accumulation Monday and distribution Tuesday, while the Nasdaq posted
accumulation for both Monday and Tuesday. At present the Dow and S&P 500 are
trading below their 200-day moving averages, while on Tuesday the Nasdaq
regained the level for the first time in a month. Technology has taken the
lead to the upside, which can be considered normal behavior for significant bull
moves. From the weekly charts, all three major indexes have stalled under their
downward trend lines. These lines must be broken for a new up move to take
place.
In the breadth department, New 52-week Highs have
picked up some against a flat Lows list, while Mark Boucher‘s
Top
RS and ER List posted a bullish reading of 43 for Monday as the
Bottom RS and ER List remained quiet. Remember, we’re looking for readings of
over 20 for either list to gain a bias for its direction.
Stocks on our watch remain in decent shape, though
the problem is new qualified names to add are not to be found. The search
continues, and when the right candidates arrive, we’ll be ready.
From Tuesday’s action:
Market breadth was mostly negative, with NYSE
declining issues over advancing issues by a ratio of 1.54, and down volume over
up volume by a 1.38 ratio. Nasdaq declining issues over advancing issues came in
at 1.13, and up volume beat down volume by a 1.92 ratio.
Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed -0.37%
at 8,740.59. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed -0.65% at
922.93.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed +0.72% at
1,431.57.
1,201
1,585
Declining Issues
1,923
1,771
601,823,000
1,144,356,000
893,300,000
588,340,000
Total
Volume
1,513,922,000
1,751,597,000
Highs
27
29
3
9
Top sectors:
Gold, Defense, Consumer, Defensive.
Watch List Action:
One of the die-hards from our “breakout” list, Coach Inc.
(
COH |
Quote |
Chart |
News |
PowerRating) appears
poised for a new 52-week high. We’ve been tracking this one since its breakout
in early September. It has slowly but surely chopped higher. This maker of
clothing and accessories maintains its top fundamental qualities, though its
retail peers have slipped in the overall RS ranking. Recent consolidation at the
levels may create a high-volume breakout, though buying circumstances are not
ideal.
Garmin Ltd.
(
GRMN |
Quote |
Chart |
News |
PowerRating) maintains its bullish run, though distribution posted
Tuesday may be a precursor to further selling. This stock has risen over 30% in
the last six weeks since we posted our first buy pivot. There hasn’t been much
in the way of an ideal entry opportunity for this one, though it is encouraging
to see its success.
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 |
Coach Inc. | ( COH | Quote | Chart | News | PowerRating) | 93 | 34.59 | +0.80 | 872,300 | 28.35 | 35.70 |
Garmin Ltd. | ( GRMN | Quote | Chart | News | PowerRating) | 96 | 31.32 | -0.41 | 404,400 | 23.46 | 31.35 |
Hovnanian Enterprises | ( HOV | Quote | Chart | News | PowerRating) | 76 | 33.06 | +0.66 | 597,000 | 33.56 | 40.56 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 85 | 77.49 | -0.43 | 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) | 91 | 65.75 | +1.78 | 2,432,900 | 78.72 |
Apollo Group | ( APOL | Quote | Chart | News | PowerRating) | 85 | 44.68 | -1.22 | 2,258,700 | 45.60 |
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
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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).