Wednesday’s Stock Watch

  • March 25, 2003
  • TradingMarkets Editors


After last week’s
monumental run up in the major indexes, we had to expect some form of
correction, and should take Monday’s selling in stride. Yet the fact remains we
are at war, and should remain cautious until there is some resolve. Price action
on the Dow and S&P 500 have pulled back from their 200-day moving averages after
closing above them last Friday for the first time in almost a year. The Nasdaq
has been holding ground above its 200-day moving average for over a week now.
Volume action is supporting the bulls’ cause, as Tuesday marked the fourth
accumulation day in two weeks for the NYSE, and the fifth accumulation day in
two weeks for the Nasdaq.



Stocks on our recent breakout list have been
powering to new 52-week highs on accumulation. This is very encouraging, though
we unfortunately have no new names to add to our lists. If this buying trend
continues finding new candidates should be no problem. Until then, let the
market work for you and let it prove itself as we trade through this sensitive
time.



From Friday’s action:



Market breadth was positive, with NYSE advancing issues over declining
issues by a ratio of 2.57, and up volume over down volume by a 4.89 ratio. Nasdaq advancing issues over declining issues came
in at 1.84, and up volume beat down volume by a 5.23 ratio.




Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed +0.79%
at 8,280.23. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) closed
+1.21%
at 874.74.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed
+1.54%
at 1,391.01.







cellPadding=0 width=”70%” border=1 height=”185″>

































  NYSE size=2>NASDAQ
Advancing Issues
2,252
2,023

Declining  Issues
872
1,074
Advancing Volume
1,071,617,000
1,218,113,000

Declining Volume

226,977,000
176,442,000

Total
Volume

1,312,896,000
1,424,516,000
New 52-week
Highs
14
16
New 52-week Lows
4
2

Strongest Sectors:

Telecoms, Data Storage, Internet, Semiconductors, Software.

Watch List Action:


One of our latest breakouts, Apollo Group
(
APOL |
Quote |
Chart |
News |
PowerRating) notched in its fourth
accumulation day in two weeks. The company beat its earnings expectations
Tuesday by $0.04, and guided higher for its third-quarter. The stock bounced off
its 20-day moving average at its low today. 





After pulling back to its 20-day moving average, International Gaming Technology
(
IGT |
Quote |
Chart |
News |
PowerRating) also put in its fifth accumulation day in two weeks. The company is
also showing great strength after overcoming a downgrade from Merrill Lynch
Tuesday. Stocks that defy their news are sending a clear message to traders.





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.



























































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

Apollo Group

(
APOL |
Quote |
Chart |
News |
PowerRating)
88
49.93
+1.67
1,696,200
46.89
50.93

Coach Inc.

(
COH |
Quote |
Chart |
News |
PowerRating)
94
39.70
+1.84
1,154,900
28.35
39.99

Expeditors International of Washington

(
EXPD |
Quote |
Chart |
News |
PowerRating)
87
37.37
+1.15
768,400
34.54
38.00

Garmin Ltd.

(
GRMN |
Quote |
Chart |
News |
PowerRating)
95
36.89
+2.44
468,100
23.46
37.20

International Game Technology

(
IGT |
Quote |
Chart |
News |
PowerRating)
92
83.48
+0.36
1,189,500
74.84
87.20

Stocks Forming a Handle




























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

CECO

(
CECO |
Quote |
Chart |
News |
PowerRating)
87
50.73
+1.45
770,200
48.07

UCBH Holdings

(
UCBH |
Quote |
Chart |
News |
PowerRating)
81
44.15
+0.51
177,100
45.20

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

Pivot

None
 
 
 
 
 
 

Daniel Beighley


If you are new to the “IT” strategy, be sure to
take a look at our

intermediate-term online trading course.


Intermediate-Term Traders
Report is posted on
Tuesdays and Fridays. For other intermediate-term commentary, be sure to read

Mark Boucher (Fridays),

Tim Truebenbach (Tuesdays and Thursdays), and

Gary Kaltbaum (Mondays and Thursdays).