Wednesday’s Stock Watch
Light trading
on the day left the indexes with slight losses. Biotechnology and
gold stocks were the day’s big gainers, with networking and Internet issues hit
with the hardest selling. Nasdaq volume came in just a little over yesterday’s
volume to make for a distribution day. Meanwhile the number of 52-week highs
tapered off from yesterday. Stocks on our watch list were mostly down, with two
of our best performers from our “breakout” list having distribution days.
Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 1.02, and down-volume over
up-volume by a 1.44 ratio. Nasdaq declining issues over advancing issues came in
at 1.05, and up volume beat down volume by a 1.54 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed down
0.21% to
9,863.74. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed down
0.39% to
1,107.50.
The Nasdaq [$COMPQ |$COMPQ] closed down 0.67%
to
1,834.21.
1,524
1,707
Issues
1,558
1,799
442,860,832
630,329,664
639,331,000
969,574,784
Volume
1,101,745,664
1,620,183,168
Highs
19
6
5
3
Top sectors:
Biotechnology Index
(
$BTK.X |
Quote |
Chart |
News |
PowerRating)
up 4.23% at 520.91.
Gold and Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) up
2.58% at 66.25.
Losing sectors:
Networking Index
(
$NWX.X |
Quote |
Chart |
News |
PowerRating)
down 3.29% at 275.05.
GSTI Multimedia Networking Index
(
$GIP.X |
Quote |
Chart |
News |
PowerRating) down
3.19% to 107.39.
Watch List Action: One of our biggest gainers of the day was NVIDIA Corp Our biggest loser of the day was Genesis Microchip
(
NVDA |
Quote |
Chart |
News |
PowerRating), up 2.12%
on above-average volume. The stock is attempting to recover from a crash below
its head and shoulders neckline, and has four days of distribution and two days
of accumulation in the past three weeks to recover from. This has been one of
our better performers, and we hope to keep it on the list as a recent breakout. 
(
GNSS |
Quote |
Chart |
News |
PowerRating), down 6.59% on
average volume. This stock has been in a downtrend for a month and a half, and
has four days of distribution against no days of accumulation to recover from.
Like NVIDIA above, this has been one of our better performers, but is suffering
with the rest of the market. 
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.
size=2>Copart Inc.
(
CPRT |
Quote |
Chart |
News |
PowerRating), down 0.43% on below-average volume for a
distribution day.
MTR Gaming Group
(
MNTG |
Quote |
Chart |
News |
PowerRating), up .3.88% on
below-average volume for an accumulation day.
Panera Bread Co.
(
PNRA |
Quote |
Chart |
News |
PowerRating), down 4.16% on above-average 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 | 52-Week High |
| size=2>Copart Inc. | size=2> ( CPRT | Quote | Chart | News | PowerRating) | 88 | 22.75 | – 0.10 | 1,045,200 | 8.60 | 25.82 |
| size=2>Genesis Microchip | size=2> ( GNSS | Quote | Chart | News | PowerRating) | 94 | 46.85 | – 3.31 | 3,363,900 | 38 | 74.90 |
| size=2>MTR Gaming Group | size=2> ( MNTG | Quote | Chart | News | PowerRating) | 95 | 15.50 | + 0.58 | 574,100 | 14.30 | 17.16 |
| size=2>Nvidia Corp. | size=2> ( NVDA | Quote | Chart | News | PowerRating) | 94 | 62.20 | + 1.29 | 8,464,900 | 52.67 | 72.66 |
| size=2>Panera Bread Co. | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 96 | 56.88 | – 2.47 | 347,700 | 14.55 | 64.94 |
Stocks Forming a Handle
American Medical Systems Holdings
(
AMMD |
Quote |
Chart |
News |
PowerRating),
up 0.45% on average volume.
DRS Technologies
(
DRS |
Quote |
Chart |
News |
PowerRating), down 4.38% on
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 |
American Medical Systems Holdings | ( AMMD | Quote | Chart | News | PowerRating) | 94 | 24.15 | + 0.11 | 257,600 |
DRS Technologies | ( DRS | Quote | Chart | News | PowerRating) | 94 | 37.10 | – 1.70 | 260,100 |
Stocks Building A Base
size=2>Multimedia Games Inc.
(
MGAM |
Quote |
Chart |
News |
PowerRating), up 7.80% on abo-e 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 |
| size=2>Multimedia Games Inc. | size=2> ( MGAM | Quote | Chart | News | PowerRating) | size=2>99 | 29.18 | + 2.11 | 210,800 |
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com