Wednesday’s Stock Watch

• July 16, 2002
• TradingMarkets Editors

Sellers hit the market in
late trading to take away earlier gains and push the major indexes back into
negative territory. Above average volume on the session signaled
distribution on the Nasdaq. The biggest gainers of the day were biotechnology,
telecoms, Internet, and oil services. The biggest losers were retail, utilities,
insurance, and consumer stocks. New 52-week lows once again dominated the highs,
with drugs and electronics putting up the most numbers. Stocks on our watch list
were hit hard, with a couple of eliminations from the lists achieved.

Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 1.56, and down volume over
up volume by a 1.90 ratio. Nasdaq declining issues over advancing issues came in
at 1.04, and down volume beat up volume by a 1.09 ratio.

The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed down 1.92% at 8473.11. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed down 1.84% at 900.96.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed down 0.53%
at 1375.28.

 

Top sectors:

Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), up 3.85% at
318.74, and the

North American Telecoms Index
(
$XTC.X |
Quote |
Chart |
News |
PowerRating), up
3.13% at
419.83.

Losing sectors:

Retail HOLDR’s
(
$RTH.X |
Quote |
Chart |
News |
PowerRating), down 3.64% at
78.42, and the

Utility Index
(
$UTY.X |
Quote |
Chart |
News |
PowerRating), down
3.07% at
268.19.

Sectors with Most New 52-Week Highs (10 or more):

None

Watch List Action:

Apollo Group
(
APOL |
Quote |
Chart |
News |
PowerRating) fell 5.15% on above average volume for its second
distribution day in a row. That’s it, this one is coming off the list after
moving below its 50-day moving average and falling more than 12% from the
high of its handle. 

Winnebago Industries
(
WGO |
Quote |
Chart |
News |
PowerRating) was our biggest loser today as it fell 8.14% on
heavy volume for its second distribution day in a row. This one is also coming
off the list as it knocked out the lows of its base and fell below its 200-day
moving average.

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.

Christopher & Banks
(
CHBS |
Quote |
Chart |
News |
PowerRating), down 6.47% on
over twice average volume for its second distribution day in a row. This one
is challenging its pivot buy point, and may be coming off the list soon.

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
Christopher & Banks	( CHBS | Quote | Chart | News | PowerRating)	94	34.51	– 2.39	392,300	33.60	42.45

Stocks Forming a Handle

Apollo Group Inc.
(
APOL |
Quote |
Chart |
News |
PowerRating), down 5.16% size=2>
on
above-average volume for its second-distribution day in a row.

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 Inc.	( APOL | Quote | Chart | News | PowerRating)	84	35.47	– 1.93	2,418,400	40.08

Stocks Building A Base

Coach Inc.
(
COH |
Quote |
Chart |
News |
PowerRating), down 3.44%
on below-average volume. This one will be
coming off the list.

DR Horton Inc.
(
DHI |
Quote |
Chart |
News |
PowerRating), down 5.76% size=2>
on heavy
volume for a distribution day.

Penn National Gaming
(
PENN |
Quote |
Chart |
News |
PowerRating), down 2.77% size=2>
on light
volume.

Winnebago Industries
(
WGO |
Quote |
Chart |
News |
PowerRating), down 8.14%
on over twice average volume for its second distribution day
in a row.

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
Coach Inc.	( COH | Quote | Chart | News | PowerRating)	79	21.00	– 0.75	1,216,200
DR Horton Inc.	( DHI | Quote | Chart | News | PowerRating)	83	22.05	– 1.35	1,332,700
Penn National Gaming	( PENN | Quote | Chart | News | PowerRating)	85	15.75	– 0.45	546,000
Winnebago Industries	( WGO | Quote | Chart | News | PowerRating)	86	38.45	– 3.41	206,700

href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com

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