Wednesday’s Stock Watch
The major indexes are in
negative territory for the week, with Tuesday’s action marking
distribution on below average volume. The Dow and S&P have been consolidating
for the past seven trading sessions, while the Nasdaq has drifted south as
technology issues exhibit weakness. Much anticipation has been built in around
Secretary of State Collin Powell’s scheduled testimony to the UN tomorrow, where
solid proof of Iraq’s weapons of mass destruction is expected to be given. What
the bulls need is a spark to turn things around from the geopolitical tension
that seems to keep buyers at bay. Friday we’ll get a new read on employment
data, which always presents a potential market mover.
From Tuesday’s action:
Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 1.38, and down volume over
up volume by a 3.15 ratio. Nasdaq declining issues over advancing issues came in
at 1.62, and down volume beat up volume by a 2.94 ratio.
Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed -1.19%
at 7935.12. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed -1.41% at
848.18.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed
-1.34% at
1,306.00.
1,267
1,209
Declining Issues
1,803
1,981
342,466,000
329,793,000
1,023,982,000
1,020,867,000
Total
Volume
1,380,533,000
1,373,242,000
Highs
15
11
20
17
Top sectors:
Fiber Optics, Gold and Silver, Internet, and
Computer Security.
Watch List Action:
Apollo Group
(
APOL |
Quote |
Chart |
News |
PowerRating) has been showing great relative strength in recent
action as it pushes towards its 52-week high. The weekly chart on this one
displays an awesome uptrend, and we might be seeing a new breakout on this one.
International Game Technology
(
IGT |
Quote |
Chart |
News |
PowerRating) put in a heavy distribution day Monday,
and is now just above its 50-day moving average. The stock has been
consolidating for the past couple of months and has breakout potential.
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) | 89 | 31.89 | -0.06 | 872,300 | 28.35 | 35.70 |
Garmin Ltd. | ( GRMN | Quote | Chart | News | PowerRating) | 94 | 29.42 | +0.05 | 404,400 | 23.46 | 31.35 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 87 | 76.76 | -2.11 | 869,800 | 66.70 | 80.10 |
Hovnanian will be coming off the list.
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) | 89 | 45.29 | +0.83 | 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 |
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).