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Adding Agilent to my bearish list of stocks

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Each day I try and give some various breadth indicators as it relates to daily advancers and decliners along with the number of stocks achieving new 52-week highs and new 52-week lows on both the New York Stock Exchange and NASDAQ Stock Exchange.

While the NASDAQ has become littered with stocks that trade under $1.00, many of those stocks that fall 2-cents in a day contribute to the sagging in the NASDAQ new lows category.

One Wednesday, then yesterday and again today, its NYSE listed Agilent Tech (NYSE:A) $13.63 -4% that continues a two-day gap lower to another 52-week low and technicals hint the stock lacks buyers and bulls look to be flushing the stock. With September marking the end of the third quarter for many mutual funds, shares of Agilent (A) may be on their way out the door for fund managers that don't want to explain their bullish position in the stock in this quarters note to shareholders.

Agilent Chart - Daily Interval

Shares of Agilent (A) may have been on the "flush" list of fund managers in the middle of the month and with the end of the third quarter quickly approaching, more fund managers may show up to get the stock off their books instead of explaining the position to their board and especially their mutual fund shareholders.

Next week, I'll be on vacation in the high mountains of Colorado. My "camp mate's" father used to work for Hewlett Packard (HPQ) $13.38 -3.25% of which Agilent (A) was spun off from. Fortunately the father of my friend immediately allocated assets away from a substantial amount of wealth in both A and HPW over 4 years ago. The son however doesn't bother to look at his fund statements anymore and has seen some gifted stock wealth get flushed down the drain. Thankfully, there's an open campfire band in the mountains of Colorado so I won't have to discuss his HPQ and A woes this year.

If the topic does come up, I'd have to day that Agillent (A) looks to trade the $10 level by late October (extension of the upper end of downward regression) if not before the end of September.

3-day weekend

Remember that the markets here in the U.S. will be closed on Monday in observance of Labor Day. As expected, volume today is very light with just over 500 million shares traded on the NYSE and a measly 673 million at the NASDAQ.

Breadth is decidedly positive at the NYSE with gainers outnumbering decliners by a 7 to 3 margin, while breadth is even at the NASDAQ.

The big board has 43 stocks hitting new 52-week highs and 22 stocks at new lows (including Agilent). NASDAQ continues to show some weakness in this number with 50 stocks at new lows versus 24 stocks hitting new highs.

Jeff Bailey
Senior Market Technician
Option Investor


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