Wednesday’s Stock Watch
The markets have been
moving higher on lower volume, not a very positive indication in
itself. Though the major indexes were able to post accumulation on
Tuesday, we would like to see it done on above-average volume to show more
conviction from the institutional players. This first part of this week is being
treated by many as a holiday week as we remember September 11.
Stocks on our watch list are doing well. We had
another breakout Tuesday, and there have been no eliminations of recent breakouts.
We have also added new stocks to our “handles” list.
From Tuesday’s action:
Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 1.29, and up volume over
down volume by a 1.39 ratio. Nasdaq advancing issues over declining issues came
in at 1.13, and up volume beat down volume by a 2.24 ratio.
The Dow Jones Industrial Average (
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) closed +0.97% at 8602.06. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed +0.73% at 909.58.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed +1.18% at 1320.09.
1,508
1,691
Declining Issues
1,200
1,492
771,347,390
923,418,270
409,330,470
379,544,696
Total
Volume
1,362,880,180
1,428,773,740
Highs
31
16
25
60
Top sectors:
Semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), +3.59%, Internet
(
$ECM.X |
Quote |
Chart |
News |
PowerRating),
+2.74%, Oil Service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), +2.67%, and Computer Tech
(
$XCI.X |
Quote |
Chart |
News |
PowerRating),
+2.19%.
Losing sectors:
Gold and Silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating),
-5.33%, Utilities
(
$UTY.X |
Quote |
Chart |
News |
PowerRating), -2.36%, and Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), 02.00%.
Watch List Action:
New to our “breakout” list is International Gaming Technology
(
IGT |
Quote |
Chart |
News |
PowerRating) as it
cruised 4.96% on over 40% average volume. The stock is already showing promise
as it closed at the top of its intraday range. This manufacturer of computerized
casino games represents one of the strongest industries in the market.
Hovnanian Enterprises
(
HOV |
Quote |
Chart |
News |
PowerRating) is still running strong, as it has yet to pull
back after breaking out. Now that the stock has reached its 52-week high, we
could see a handle form in here. The stock is looking very strong as it has been
under heavy 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 | 43.40 | +0.62 | 2,493,400 | 39.60 | 43.85 |
Coach Inc. | ( COH | Quote | Chart | News | PowerRating) | 93 | 29.35 | -0.01 | 1,158,500 | 28.35 | 30.12 |
Corinthian Colleges | ( COCO | Quote | Chart | News | PowerRating) | 97 | 37.51 | +0.57 | 881,800 | 34.69 | 38.00 |
Hovnanian Enterprises | ( HOV | Quote | Chart | News | PowerRating) | 98 | 39.05 | +0.00 | 491,400 | 33.56 | 39.24 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 74 | 68.32 | +3.23 | 967,400 | 66.70 | 68.50 |
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) | 88 | 46.49 | -1.16 | 677,000 | 48.36 |
Education Mgt. Co. | ( EDMC | Quote | Chart | News | PowerRating) | 88 | 42.19 | -0.04 | 336,000 | 43.62 |
Hilb Rogal Hamilton | ( HRH | Quote | Chart | News | PowerRating) | 95 | 44.77 | +0.91 | 191,000 | 45.08 |
Kohl’s Corporation | ( KSS | Quote | Chart | News | PowerRating) | 74 | 71.90 | + .23 | 2,557,300 | 73.75 |
Mid Atlantic Medical Services | ( MME | Quote | Chart | News | PowerRating) | 94 | 35.98 | +0.43 | 668,600 | 37.97 |
Annaly Mgt. Inc. | ( NLY | Quote | Chart | News | PowerRating) | 90 | 19.57 | – 0.33 | 1,018,500 | 20.50 |
Penn National Gaming | ( PENN | Quote | Chart | News | PowerRating) | 94 | 18.99 | -0.40 | 329,100 | 20.12 |
Alliant Techsystems | ( ATK | Quote | Chart | News | PowerRating) | 90 | 70.50 | -0.69 | 483,200 | 69.95 |
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 | + 1.08 | 4,627,700 |
Brown & Brown | ( BRO | Quote | Chart | News | PowerRating) | 71 | 28.63 | – 0.22 | 367,300 |
Wellpoint Health Network | ( WLP | Quote | Chart | News | PowerRating) | 88 | 76.80 | +0.86 | 1,785,400 |
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).