Thursday’s Top Stocks
All of a sudden, the spin cycle goes back to reflecting rising rates and geopolitical
mayhem, putting decent corporate reports on the back burner–and voila, some
truly ugly looking charts come into play, much quicker than most mortals can
press the profit-taking button. For the session the S&P 500 and Nasdaq Composite
finished off between down 1% to 2.12%–with the Naz doing the so-called ‘profit-taking’
on increased, above-average trade…’oh Lordy.’ Hmm, wasn’t it Jack Lord that
said it best, ‘Book ’em, Dan’o’?
With all the sudden ugliness comes the opportunity for at least a brief reprieve
in the form of the semiconductor sector. As mentioned yesterday, ‘those guys’
have been the hardest hit, but with today’s trade they are in fact in the best
position to reverse some of the short-term oversold condition. The semiconductor
HOLDRs or ‘The SMASH’ (SMH) were able to test prior Year-To-Date lows in the
form of a potential double-bottom pattern. I guess we’ll just have to see what
happens in tomorrow’s session. If there’s support for the technical zone, I know
I’ll be ready to play from the long side. But, as stated yesterday, ‘with
intermediate downtrends still intact in the broader averages, and what I’ll just
call, some very strange-looking charts due to the recent volatility, I’m not gonna bet the family ranch on it, as this cautious
bull doesn’t mind steering clear if the charts ultimately say ‘no mas’. The
one thing you won’t find me steering clear of, regardless if we get a reversal
down here or not–is our daily dose of disciplined, consistent daytrading tactics.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
16.72 | up 1.74 | na | 8% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
22.95 | up 1.11 | na | 4% above | not at extreme |
Hottest Sectors : NA
Weakest Sectors : Gold/Silver (XAU)
Thursday’s stocks to watch:
Technical Strength.
Stocks are scanned from TM’s Proprietary and Technology 10 Momentum lists on
the Indicators page, as well as being hand selected, based on the most recent
technical action. This may include some or all of the following: abnormal
volume, price patterns, as well as bullish action off of technical price
supports or clearance of technical resistance in that day’s session.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| PETsMART | ( PETM | Quote | Chart | News | PowerRating) |
29 | Top of range close, on increased, above-average 52-week high test |
1,262 | 1,992 |
| SPACEHAB | ( SPAB | Quote | Chart | News | PowerRating) |
4.45 | 9-week lateral consolidation with volume surge within base, closing high of day |
203 | 523 |
Technical Weakness.
Stocks are scanned from TM’s Implosion and Technology Implosion Lists on the
Indicators page, as well as being hand selected, based on the most recent
technical action. This may include some or all of the following: abnormal
volume, price patterns, as well as bearish technical action at key support,
or resistance levels based on closing prices.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| NA | NA | NA | NA | NA | NA |
^next^
Stock Reversal Setups Closing Basis.
Stocks that are setting up on a closing basis as potential long or short reversal pattern
candidates. Candidates listed may have triggered on a closing basis, or close
to triggering ( my general rule is to list the pattern setup if it is within
+/-.15 of trigger price). Patterns include basing patterns (Slim Jims, 1,2,3s,
Double bottoms) consolidations, and triangle reversals. Background technical
supports in the form of Fibonacci levels, EMAs (DEMA=daily ema), RS, and former
price action are used in the decision making process.
Long Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| NA | NA | NA | NA | NA | NA |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| NA | NA | NA | NA | NA | NA |
Institutional Favorites and Institutional Laggards.
The following stocks are selected from the Nasdaq, S&P 500 & 600 Indices,
and HOLDRs. These are normally heavily traded, liquid issues that are exhibiting
relative strength or weakness, patterns (consolidations or Slim Jims) , or
last hour volume surges, indicative of follow through in the very near term.
Institutional Favorites
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Verisign | ( VRSN | Quote | Chart | News | PowerRating) |
17.38 | 2,616 | 4,236 |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) |
37.66 | 6,627 | 7,286 |
| Flextronics | ( FLEX | Quote | Chart | News | PowerRating) |
17.19 | 7,184 | 17,401 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| General Electric | ( GE | Quote | Chart | News | PowerRating) |
30.02 | 28,450 | 27,303 |
| Schlumberger | ( SLB | Quote | Chart | News | PowerRating) |
61 | 3,606 | 3,426 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler