Wednesday’s Stock Watch
In choppy
trading, the major averages were able to make slight gains on the day
with average NYSE volume signaling an accumulation day. Japan issues, computer
hardware, and broker/dealer stocks closed with the biggest gains, and airline,
networking, and biotechnology stocks were the deepest in the red. The Dow and
the S&P 500 continue to trade in their tight consolidations, as the Nasdaq
struggles to break its downward trend line on its weekly chart. Meanwhile, the
NYSE continues to power ahead with an impressive 91 new 52-week highs. Stocks on
our watch lists were mixed, with one of our “stocks forming a handle” selections
failing to make the grade.
Market breadth was slightly positive, with NYSE
advancing issues over declining issues by a ratio of 1.20, and up volume over
down volume by a 1.41 ratio. Nasdaq advancing issues over declining issues came
in at 1.06, and down volume beat up volume by a 1.04 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed up 0.54%Â to
10,635.25. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed up 0.40% to
1,170.29.
The Nasdaq [$COMPQ |$COMPQ] closed up 0.20% to 1880.87.
Â
1,706
1,828
Issues
1,426
1,718
705,894,000
723,652,000
501,458,000
752,707,000
Volume
1,241,010,000
1,509,588,000
Highs
91
41
5
0
Top sectors:
Japan Index
(
$JPN.X |
Quote |
Chart |
News |
PowerRating) up 2.58% at 124.30.
Computer Boxmaker Index
(
$BMX.X |
Quote |
Chart |
News |
PowerRating) up
1.99% at 117.31.
Losing sectors:
Airline
Index
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) down 3.83% at 106.01.
Networking
Index
(
$NWX.X |
Quote |
Chart |
News |
PowerRating) down
2.75% to 239.63.
Watch List Action:
Multimedia Games
(
MGAM |
Quote |
Chart |
News |
PowerRating) racked up its third accumulation day in a row as
it gained 3.27% on below average volume.
Group 1
Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating) fell 0.40% on less than half its average volume as it
pulled back from an accumulation day.
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.
Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating), down 0.40% on less than half its average volume.
size=2>Multimedia Games Inc.
(
MGAM |
Quote |
Chart |
News |
PowerRating), up 3.26% on average volume
for its third
accumulation day in a row.
size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), up 0.28%
on below-average volume.
| 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 |
Group 1 Automotive | ( GPI | Quote | Chart | News | PowerRating) | 96 | 39.79 | – 0.16 | 326,400 | 33.14 | 41.50 |
size=2>Multimedia Games Inc. | size=2> ( MGAM | Quote | Chart | News | PowerRating) | size=2>99 | 35.39 | + 1.12 | 366,500 | 30.91 | 33.74 |
| size=2>Panera Bread Co. | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 93 | 63.39 | +0.18 | 438,600 | 14.55 | 64.94 |
Stocks Forming a Handle
Affiliated Computer Services
(
ACS |
Quote |
Chart |
News |
PowerRating), down
1.32%
on below-average volume. The stock failed to follow through from its price
breakout yesterday. This is not an invitation for us to get into the stock,
and it will be coming off the list.
DRS Technologies
(
DRS |
Quote |
Chart |
News |
PowerRating), up 0.02% on
less than half its -average volume.
Krispy Kreme Doughnuts
(
KKD |
Quote |
Chart |
News |
PowerRating), up 3.71% on
above-average volume for an accumulation day. In the same way that
Affiliated Computer Services attempted to breakout yesterday, this one needs
to follow through on heavier volume to be certified with a breakout.
| 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 |
Affiliated Computer Services | ( ACS | Quote | Chart | News | PowerRating) | 82 | 56.75 | + 3.71 | 1,809,600 | 54.60 |
DRS Technologies | ( DRS | Quote | Chart | News | PowerRating) | 94 | 39.02 | +0.92 | 227,700 | 42.90 |
Krispy Kreme Doughnuts | ( KKD | Quote | Chart | News | PowerRating) | 85 | 47.71 | +0.84 | 730,900 | 42.06 |
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
Â