Wednesday’s Top Stocks
Hmm, I guess sometimes the rules do apply–bearish sentiment, frown lines on
CNBC anchors, and of course, so many double bottoms that made lower lows, that
it would have been simply irresponsible not to have called for a technical bounce.
Thankfully, the markets did their best to cooperate, as both the S&P 500
and Nasdaq Composite finished higher–up between .76% to 1.86%. Now, it is a
fact that this movement happened on lighter, below-average trade–but, that’s
alright in this cautious bull’s book. Seriously folks, after the whipping the
smart money just took as they unloaded their market-weighted portfolios, can
you blame ’em for wanting to take a break before they make it look really, really
good for the viewing audience?
Very nice action, especially in the Nasdaq. As stated in yesterday’s report
however, I really don’t expect a strong leg up that will seriously break the
intermediate downtrend on the indices. Besides reversal positions, of which
there are still plenty to be found, the move up really affords the opportunity
to look for shorts as we move into key resistance levels. One that I’m still
watching is in the semiconductor HOLDRs (SMH), which comes in around the 38.20
– 39.50 ballpark. If the markets or smart money find it in their best interest
to turn into aggressive bargain hunters, that’s where I’ll start as price moves
to test the zone–using a combo of the intraday and daily charts in looking
for appropriate shorts.
Maybe price doesn’t get there, or maybe it simply blasts through that zone.
I don’t know, and I won’t know until price actually paves the way, so there’s
no point in further conjecture or pontificating. The real point of the matter
is, that wherever price gets to, I’ll be there with our disciplined, consistent
daytrading tactics–and that’s a fact.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
18.55 | down 1.19 | cvr 2,6 buy | 6% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
27.63 | down .28 | cvn 2, 6 buy | 8% above | not at extreme |
Hottest Sectors : Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Pharmaceuticals
(
PPH |
Quote |
Chart |
News |
PowerRating)
Wednesday’s stocks to watch:
Longs.
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 Assesment | Average Volume 000’s | Today’s Volume |
| August Technology | ( AUGT | Quote | Chart | News | PowerRating) |
13.74 | Kings & Queens reversal bar off angular triple bottom on increased trade |
226 | 170 |
| American Healthways | ( AMHC | Quote | Chart | News | PowerRating) |
21.99 | High volume hammer reversal bar out of Fibonacci ‘Fly’ pattern |
419 | 1,571 |
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 Assesment | Average Volume 000’s | Today’s Volume |
| Wellpoint Health | ( WLP | Quote | Chart | News | PowerRating) |
109.62 | Bottom of range close after price test of daily resistance from below |
745 | 669 |
| Eon Labs | ( ELAB | Quote | Chart | News | PowerRating) |
64.80 | Increased, above-average volume inside bar below price and MA resistance |
342 | 346 |
^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 |
| Dell | ( DELL | Quote | Chart | News | PowerRating) |
36.66 | 16,805 | 19,777 |
| Intuit | ( INTU | Quote | Chart | News | PowerRating) |
42.94 | 2,410 | 4,186 |
| Intel | ( INTC | Quote | Chart | News | PowerRating) |
27.78 | 65,517 | 82,088 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Electronic Arts | ( ERTS | Quote | Chart | News | PowerRating) |
50.34 | 3,991 | 6,549 |
| Eli Lilly | ( LLY | Quote | Chart | News | PowerRating) |
73.85 | 3,439 | 3,236 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler