Wednesday’s Stock Watch
The markets
took a breather after yesterday’s gains, with below-average volume on
the session bringing the indexes to slight losses. We are now looking for follow
through from last Friday’s buying binge, and we’d like it to come by next
Wednesday in the form of a 2% gain with heavy volume on at least one of the
indexes.
So far, breakouts on the NYSE have been chiming in with readings over 50
for the past two days, though the Nasdaq still remains an area of weakness.
There is still no question that the overall trend remains down. Stocks on our watch list
were mixed, with our most recent breakout following up with accumulation.
Market breadth was positive, with NYSE
advancing issues over declining issues by a ratio of 1.37, and up volume over
down volume by a 1.38 ratio. Nasdaq advancing issues over declining issues came
in at 1.12, and up volume beat down volume by a 1.46 ratio.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed
down
0.30% to
10,115.26..
The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating)
closed down
-0.01% to
1,109.33. The
Nasdaq [$COMPQ |$COMPQ] closed down
-0.17% to
1,766.86.
1,803
1,831
Issues
1,320
1,641
727,727,000
1,292,535,000
528,143,000
884,797,000
Volume
1,291,287,000
754,238,000
Highs
57
16
0
6
Top sectors:
Gold and Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) up
4.78% at 66.57.
Dow Jones Internet Commerce Index
(
$ECM.X |
Quote |
Chart |
News |
PowerRating) up
1.75% at 46.88.
Losing sectors:
Morgan Stanley Healthcare Provider Index Combined Telecom Index Watch List Action: Down on heavy distribution we had MTR Gaming Group Our most recent breakout, Group 1 Automotive
(
$RHX.X |
Quote |
Chart |
News |
PowerRating), down 0.98% at
298.69.
(
$IXTC.X |
Quote |
Chart |
News |
PowerRating), down 0.97% at 168.25.
(
MNTG |
Quote |
Chart |
News |
PowerRating) as it fell
19.33% on over eleven times its daily average volume. The company announced that
it was having problems converting its slot machines to higher wagers. The
company also said that it expects to earn 10 to 11 cents a share, compared to 9
cents a share a year earlier. Investors were clearly caught by surprise on the
news as the stock bounced off its 200-day moving average at its low today. 
(
GPI |
Quote |
Chart |
News |
PowerRating), fared well as
the stock went up 5.82% on over twice-average volume for an accumulation day.
This is the type of behavior we want to see after a breakout, we wish this one
well in a difficult environment. 
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 1.82% on average
volume.
size=2>Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating), down 7.73% on almost twice-average
volume.
size=2>Panera Bread Co
(
PNRA |
Quote |
Chart |
News |
PowerRating), down 1.90%
on average volume for a distribution day.
size=2>Nvidia Corp.
(
NVDA |
Quote |
Chart |
News |
PowerRating), up 2.17% on above-average volume for an
accumulation 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) | 85 | 19.93 | – 0.36 | 1,014,700 | 8.60 | 25.82 |
Group 1 Automotive | ( GPI | Quote | Chart | News | PowerRating) | 91 | 34.50 | + 0.67 | 282,200 | 33.14 | 34.99 |
| size=2>Genesis Microchip | size=2> ( GNSS | Quote | Chart | News | PowerRating) | 90 | 40.09 | – 3.36 | 3,361,400 | 38 | 74.90 |
| size=2>MTR Gaming Group | size=2> ( MNTG | Quote | Chart | News | PowerRating) | 96 | 13.60 | – 3.26 | 584,900 | 14.30 | 17.16 |
| size=2>Nvidia Corp. | size=2> ( NVDA | Quote | Chart | News | PowerRating) | 88 | 55.00 | + 1.17 | 9,673,200 | 52.67 | 72.66 |
| size=2>Panera Bread Co. | size=2> ( PNRA | Quote | Chart | News | PowerRating) | 91 | 51.50 | – 1.00 | 370,400 | 14.55 | 64.94 |
Stocks Forming a Handle
American Medical Systems Holdings
(
AMMD |
Quote |
Chart |
News |
PowerRating),
down 3.30% on above-average volume for a distribution day.
DRS Technologies
(
DRS |
Quote |
Chart |
News |
PowerRating), up 0.07% 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 |
American Medical Systems Holdings | ( AMMD | Quote | Chart | News | PowerRating) | 92 | 22.82 | – 0.78 | 303,300 |
DRS Technologies | ( DRS | Quote | Chart | News | PowerRating) | 95 | 38.25 | + 0.03 | 275,700 |
Stocks Building A Base
size=2>Multimedia Games Inc.
(
MGAM |
Quote |
Chart |
News |
PowerRating), up 0.41% 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 |
| size=2>Multimedia Games Inc. | size=2> ( MGAM | Quote | Chart | News | PowerRating) | size=2>99 | 28.65 | + 0.07 | 326,000 |
Until tomorrow,