Wednesday’s Stock Watch
The first day of the
trading month was off to a negative start, as distribution was posted on the
major exchanges. Market breadth was convincingly biased to the
downside, with down-volume over up-volume by over 10:1. Overall volume on the
session was well below average, taking away from the conviction of the move.
Stocks on our watch lists were mostly down, with one
from our “building a base” list under heavy accumulation.
From Tuesday’s action:
Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 4.20, and down-volume over
up-volume by a 10.70 ratio. Nasdaq declining issues over advancing issues came in
at 3.47, and down-volume beat up-volume by a 15.49 ratio.
The Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) closed down 4.10% at 8308.05. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed down 4.15% at 878.02. The
Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed down 3.88% at 1263.83.
530
761
Declining Issues
2,248
2,519
113,974,830
84,863,364
1,377,105,110
1,267,360,401
Total
Volume
1,496,915,660
1,363,931,869
Highs
17
18
52
124
Top sectors:
Gold and Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), up 1.88% at 70.77.
Losing sectors:
Oil Service Sector
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), down 6.43% at 76.66.
Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), down 5.75% at 326.46.
Sectors with Most New 52-Week Highs (10 or more):
None.
Watch List Action:
Under heavy accumulation, Coach Inc.
(
COH |
Quote |
Chart |
News |
PowerRating) rose 6.05% on almost twice
average volume. For a breakout, we’re looking for over 50% average volume and a break through the 28.35 mark. The sloppy base
formation takes away
from the likelihood of a successful run. We’ll see what it can do.
Corinthian Colleges
(
COCO |
Quote |
Chart |
News |
PowerRating) fell 2.49% on above average volume. This is our
most recent breakout.
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) | 95 | 40.43 | – 1.40 | 2,471,300 | 39.60 | 43.27 |
Corinthian Colleges | ( COCO | Quote | Chart | News | PowerRating) | 98 | 36.32 | – 0.93 | 465,400 | 34.69 | 38.00 |
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 |
Coach Inc. | ( COH | Quote | Chart | News | PowerRating) | 89 | 26.12 | + 1.49 | 1,139,500 | 28.35 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 77 | 62.67 | – 2.01 | 965,800 | 66.70 |
Kohl’s Corporation | ( KSS | Quote | Chart | News | PowerRating) | 70 | 67.01 | – 2.71 | 2,516,700 | 73.75 |
Mid-Atlantic Medical Services | ( MME | Quote | Chart | News | PowerRating) | 94 | 34.51 | – 1.60 | 708,300 | 37.87 |
Penn National Gaming | ( PENN | Quote | Chart | News | PowerRating) | 93 | 17.46 | – 0.84 | 333,000 | 20.12 |
Alliant Techsystems | ( ATK | Quote | Chart | News | PowerRating) | 85 | 64.74 | – 3.48 | 279,500 | 69.95 |
Kohl’s Corp.
(
KSS |
Quote |
Chart |
News |
PowerRating) has fallen below its 200
and 50-day moving averages with distribution, we are taking it 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 |
Hovnanian Enterprises | ( HOV | Quote | Chart | News | PowerRating) | 96 | 29.94 | – 1.18 | 457,300 |
Wellpoint Health Network | ( WLP | Quote | Chart | News | PowerRating) | 88 | 71.91 | – 2.46 | 1,882,100 |
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).