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.







cellPadding=0 width=”70%” border=1 height=”185″>

































  NYSE size=2>NASDAQ
Advancing Issues
1,267

1,209

Declining  Issues

1,803

1,981
Advancing Volume
342,466,000

329,793,000
Declining Volume

1,023,982,000

1,020,867,000

Total
Volume

1,380,533,000

1,373,242,000
New 52-week
Highs

15

11
New 52-week Lows
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


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).