Wednesday’s Stock Watch
The markets made another day of distribution
Tuesday, giving us further evidence of a shaky market. Key resistance levels on
the indexes were also broken, as pointed out by
Gary Kaltbaum.
New 52-week lows continue to dominate the highs in
numbers, and Mark Boucher‘s
Top
RS and ER List and
Bottom RS and ER List remain biased to the bears.
Stocks listed on this report have
posted some distribution, though recent breakouts are still intact.
From Tuesday’s action:
Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 2.33, and down volume over
up volume by a 6.49 ratio. Nasdaq declining issues over advancing issues came in
at 1.76, and down volume beat up volume by a 3.16 ratio.
The Dow Jones Industrial Average
(
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) closed -2.05% at 8207.55. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed -1.97% at 873.52. The
Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed -1.24% at 1259.94.
910
1,190
Declining Issues
2,144
2,079
161,294,000
320,278,000
1,157,560,000
1,160,812,000
Total
Volume
1,326,975,000
1,494,683,000
Highs
2
1
44
33
Top sectors:
Gold and Silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating).
Losing sectors:
Semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) and Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating).
Watch List Action:
Our most recent breakout, International Game Technology
(
IGT |
Quote |
Chart |
News |
PowerRating), has been
stumbling and is now threatening to cut back into its base. If the price action
drops below 7% of its pivot buy point of 66.70, we’ll remove it from the list.
Hovnanian Enterprises
(
HOV |
Quote |
Chart |
News |
PowerRating) remains our strongest breakout, as the
stock continues to hit new highs. The stock has now made two accumulation days
in a row.
The longest standing member of our breakout list, Apollo Group
(
APOL |
Quote |
Chart |
News |
PowerRating),
remains bullish as it trends higher. The stock has posted three days of
distribution in the past two weeks, with three days of accumulation.
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) | 94 | 42.05 | -0.06 | 2,398,300 | 39.60 | 44.00 |
Alliant Techsystems | ( ATK | Quote | Chart | News | PowerRating) | 90 | 69.99 | -3.71 | 459,100 | 69.95 | 76.93 |
Coach Inc. | ( COH | Quote | Chart | News | PowerRating) | 96 | 28.43 | -0.60 | 1,106,200 | 28.35 | 30.12 |
Corinthian Colleges | ( COCO | Quote | Chart | News | PowerRating) | 97 | 36.83 | -0.17 | 831,500 | 34.69 | 38.00 |
Hovnanian Enterprises | ( HOV | Quote | Chart | News | PowerRating) | 98 | 40.00 | +0.31 | 562,200 | 33.56 | 40.56 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 89 | 65.05 | -1.56 | 956,500 | 66.70 | 68.50 |
Penn National Gaming | ( PENN | Quote | Chart | News | PowerRating) | 96 | 19.42 | -0.72 | 324,100 | 19.70 | 20.88 |
Alliant Techsystems posted a huge day of
distribution Tuesday, signaling trouble for this recent breakout.
New to the breakout list is Penn National Gaming
as it broke out of its most recent consolidation on over twice average
volume.
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) | 83 | 44.90 | +0.27 | 679,200 | 48.36 |
Education Mgt. Co. | ( EDMC | Quote | Chart | News | PowerRating) | 85 | 41.14 | +0.44 | 322,400 | 43.19 |
Hilb Rogal Hamilton | ( HRH | Quote | Chart | News | PowerRating) | 95 | 44.07 | -0.48 | 177,800 | 45.08 |
Kohl’s Corporation | ( KSS | Quote | Chart | News | PowerRating) | 81 | 70.26 | -1.54 | 2,612,900 | 73.16 |
Mid Atlantic Medical Services | ( MME | Quote | Chart | News | PowerRating) | 95 | 36.08 | -0.58 | 579,200 | 38.18 |
Annaly Mgt. Inc. | ( NLY | Quote | Chart | News | PowerRating) | 88 | 18.36 | -1.14 | 917,300 | 20.50 |
Commerce Bancorp has strayed from a choppy handle and will come off the list if it drops below its 50-day SMA.
Annaly Medical Services sold off with heavy
distribution Tuesday below its major SMAs. It will be coming off the list.
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 |
Bed Bath & Beyond | ( BBBY | Quote | Chart | News | PowerRating) | 82 | 34.35 | -0.43 | 4,630,700 |
Brown & Brown | ( BRO | Quote | Chart | News | PowerRating) | 73 | 27.60 | -0.95 | 348,400 |
Wellpoint Health Network | ( WLP | Quote | Chart | News | PowerRating) | 90 | 76.27 | -2.69 | 1,679,000 |
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).