Wednesday’s Stock Watch
The major
averages sold off today, with NYSE and Nasdaq volume both making
distribution days. Natural gas, Japan, and oil stocks made modest gains on the
session, with software, airline, and Internet issues making the day’s worst
losses. Despite the distribution day, we have not seen above-average volume
enter the market for three weeks. The stocks on our watch list were all down
today.
Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 1.10, and down volume over
up volume by a 1.90 ratio. Nasdaq declining issues over advancing issues came in
at 1.57, and down volume clobbered up volume by a 7.61 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed down 0.47%Â to
10313.71. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed
down 0.85% to
1136.77.
The Nasdaq [$COMPQ |$COMPQ] closed down 3.12% at 1804.41.
Â
1,507
1,367
Issues
1,655
2,153
391,359,000
192,969,000
741,767,000
516,633,000
Total
Volume
1,162,542,000
1,468,664,000
Highs
44
16
6
5
Top sectors:
Natural Gas
Index
(
$XNG.X |
Quote |
Chart |
News |
PowerRating)
up 1.70% at 199.81.
Japan
Index
(
$JPN.X |
Quote |
Chart |
News |
PowerRating) up
1.60% at 118.06.
Losing sectors:
GSTI Software
Index
(
$GSO.X |
Quote |
Chart |
News |
PowerRating) down 6.55% at 155.34.
Airline
Index
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) down 4.72% to 97.67.
New 52-Week Highs Consolidations:
Banking – 17
Energy – 16
Real Estate – 14
Metals and Mining – 12
Utilities – 9
Computer Software – 7
Diversified Services – 7
Health Services – 7
Insurance – 7
Manufacturing – 7
Wholesale – 7
Aerospace/Defense – 6
Telecommunications – 6
Retail – 6
Food and Beverage – 5
Internet – 5
Specialty Retail – 4
Consumer Non-Durables – 3
Leisure – 3
Consumer Durables – 3
Electronics – 3
Watch List Action:
Direct Focus
(
DFXI |
Quote |
Chart |
News |
PowerRating) fell 1.54% on above average volume. So far the
breakout is sticking, and today’s action doesn’t compare to the last two days of
intense buying.
Group 1
Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating) was hit by selling again, as a below-average volume on the
session brought the stock down 2.25%. With four distribution days in the past
three weeks, this one is not looking good from a short-term perspective. Given
the highly questionable market we are in, quick profits are a way to stay
deffensive.Â
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.
Direct Focus Inc.
(
DFXI |
Quote |
Chart |
News |
PowerRating) down 1.54% on
above average volume.
Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating), down 2.25% on below-average volume.
size=2>Multimedia Games Inc.
(
MGAM |
Quote |
Chart |
News |
PowerRating), down 8.94% on below-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 | 52-Week High |
Direct Focus Inc. | ( DFXI | Quote | Chart | News | PowerRating) | 89 | 38.78 | – 0.61 | 830,800 | 36.54 | 39.82 |
Group 1 Automotive | ( GPI | Quote | Chart | News | PowerRating) | 95 | 37.70 | – 0.87 | 309,200 | 33.14 | 43.69 |
size=2>Multimedia Games Inc. | size=2> ( MGAM | Quote | Chart | News | PowerRating) | size=2>99 | 31.85 | – 3.13 | 365,200 | 30.91 | 37.05 |
Stocks Forming a Handle
Christopher & Banks Corporation
(
CHBS |
Quote |
Chart |
News |
PowerRating),Â
down 3.60% on
average volume for a distribution day.
Krispy Kreme Doughnuts
(
KKD |
Quote |
Chart |
News |
PowerRating), down 1.26% on
below average volume.
Movie Gallery
(
MOVI |
Quote |
Chart |
News |
PowerRating), down 0.55% on below
average
volume.
size=2>
size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), down 0.64%
on below volume for a distribution day.
| 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 |
Christopher & Banks | ( CHBS | Quote | Chart | News | PowerRating) | 85 | 30.48 | – 1.14 | 498,100 | 33.60 |
Krispy Kreme Doughnuts | ( KKD | Quote | Chart | News | PowerRating) | 82 | 39.80 | – 0.51 | 632,800 | 44.12 |
Movie Gallery | ( MOVI | Quote | Chart | News | PowerRating) | 97 | 16.03 | – 0.09 | 408,600 | 17.99 |
size=2>Panera Bread Co | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 93 | 61.90 | – 0.40 | 442,400 | 66.23 |
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 |
None | Â | Â | Â | Â | Â |
Â
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com
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