Monday’s Top Stocks
The higher the bulls climb
up the “Trading Tree,” a branch is just bound to break, or at least
bend a little towards Mother Earth. I guess with the great stories out from both
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating), and from the Bureau of Labor Statistics bullish
Unemployment Report that lent “a helping hand”in today’s enthusiastic opening
bid, you could say that the streets of Pamplona had fewer bulls running through
them than our ETF friends did, early on in Friday’s trade. Unfortunately, when
there’s that many bulls, you know what they can leave behind, and that’s how it
went in today’s session. Volatility reigned supreme as fresh highs were once
again established, before the last of the, “I can’t stand it anymore, Johnny
Come Lately’s” capitulated into the bullish camp.
Welcome to the horn-wearing party. The Spyders
(
SPY |
Quote |
Chart |
News |
PowerRating),
Nasdaq
100
(
QQQ |
Quote |
Chart |
News |
PowerRating), and the Diamonds
(
DIA |
Quote |
Chart |
News |
PowerRating) all had
great travel range, but unfortunately made it very difficult for our late
entrants. Volume was at or near the heaviest of the year, with a mixed bag for
internals as they hovered around the 1:1 mark in the advance / decline
department. Throw in a poor finish by the market proxies, and you have our
little ETF friends testing the mettle of those that needed that extra little bit
of confirmation. Don’t let the small fractional numbers fool you, as today was
definitely a day in which heeding, “Let the buyer beware” made the most
sense. The ETFs confirm this message with the lagging Diamonds finishing up
fractionally, while the Nasdaq 100
(
QQQ |
Quote |
Chart |
News |
PowerRating) was our worst performer, down
approximately 1%, and the Spyders once again finishing in between the
two, but showing signs of a scrape with a bear.
Overbought? More so this morning,
as the “Big Red Boat” was last seen pulling into port for a little bit of R&R. A pullback looks to be in the making as the ETFs finished in
“tailing” candlestick fashion after establishing fresh relative highs
on a “gap and crap” higher. It was a classic trap, as the “fear of missing out”
crowd bit the bullet with this morning’s bullish reports. The question now is,
for how long can we expect a “pullback or correction”? It’s the
million-dollar question that will have both the bulls and bears wondering over
the weekend.
Fortunately for us daytraders out
there, we can continue to focus on what really matters, making money
consistently. Whether it’s a bull or a bear, our best way to “stay out of
the streets” or “out of the woods” is by preparing our list of
High and Low RS issues, and then executing the quality intraday setups as they
present themselves. In tune with what the market is really saying, and not
today’s latest and greatest numbers.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
23.48 |
up 1.00 | None | 5% Above | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
36.13 | up 3.12 | CVR 3 Buy | 11.8% Above | Not At Extreme |
Hottest Sectors : Health & Medical
(
$HMO.X |
Quote |
Chart |
News |
PowerRating)
and Software
(
SWH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Internet
(
HHH |
Quote |
Chart |
News |
PowerRating) and Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating)
Monday’s HELVETICA>stocks to watch:
Technical
Strength Top of Range.
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 | Today’s Volume |
| Netscreen
Technologies |
( NSCN | Quote | Chart | News | PowerRating) |
24.25 | top of range close on a daily high volume B/O | 1,597m | 2,604m |
| Panera Breads | ( PNRA | Quote | Chart | News | PowerRating) |
36.79 | top of range consolidation on a daily B/O |
621k | 1,064m |
| Cognizant Technologies |
( CTSH | Quote | Chart | News | PowerRating) |
22.99 | Cup & Handle intraday close on a daily B/O gap fill of trading range |
2,213m | 2,024m |
| Sharper Image | ( SHRP | Quote | Chart | News | PowerRating) |
26.10 | Consolidation close at top of range on continuing 52-week highs |
268k | 518k |
Technical Weakness Bottom of Range.
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 | Today’s Volume |
| IBM | ( IBM | Quote | Chart | News | PowerRating) |
80.05 | Bottom of range close on high volume below the 200-Day EMA |
8,165m | 15,069m |
| Whole Foods Markets | ( WFMI | Quote | Chart | News | PowerRating) |
50.19 | Low RS issue closing at bottom of range, at pivot support lows established Thursday |
1,206m | 1,871m |
| Jacobs Engineering | ( JEC | Quote | Chart | News | PowerRating) |
39.67 | Reversal at technical resistance (50-Day EMA) on above average volume in Low RS issue |
446k | 619k |
class=890430920-15102001>
class=890430920-15102001>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.
class=890430920-15102001>Long Reversals class=890430920-15102001>Closing Basis.
None Today.
class=890430920-15102001>
Short
Reversals
Closing Basis.
None Today.
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 | Today’s Volume |
| Electronic Arts | ( ERTS | Quote | Chart | News | PowerRating) |
72.35 | 3,453m | 7,074m |
| Paychex | ( PAYX | Quote | Chart | News | PowerRating) |
30.82 | 2,678m | 3,938m |
| Boeing | ( BA | Quote | Chart | News | PowerRating) |
34.86 | 4,680m | 5,781m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Costco | ( COST | Quote | Chart | News | PowerRating) |
35.26 | 4,489m | 9,046m |
| Maxim Integrated | ( MXIM | Quote | Chart | News | PowerRating) |
36.86 | 8,195m | 12,993m |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) |
23.67 | 61,500m | 118,000m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.