Wednesday’s Top Stocks
Technically speaking, the market was open–and it was also testing our bovine
friends’ highest levels of technical support, a combination of the 38% Fibonacci
level and the 20-day EMA. But, with Veteran’s Day upon us and volume not exactly
deserving of a four-star ranking, we’ll just look forward to tomorrow’s game.
On the session, the ETFs finished a very narrow intraday range in ‘doji’ fashion
on lighter below-average volume and fractional price setbacks of .02% to .35%.
About the only technical sign worth any merit would be the conviction of some
profit-takers, as the advance/decline ratio came in at a bearish .60 combined
reading. Grrr…
Today did, in fact, usher in the technical test which was broadstroked in yesterday’s
piece. ‘Yahoo!!!’ A successful test–uhmm, not so fast, buckaroo. Lighter volume
was a good sign, but that of course is largely attributed to the fact that quite
a few of the boys were out saluting the real Generals. I don’t have a problem
trying to play reversals off these levels, but I don’t think its going to lead
to higher prices. Personally, it seems to me that the ‘pullback gang’ has gotten
a bit too big for their collective britches, right at the same time that volatility
levels are coming off historic lows, and things couldn’t look better according
to the latest series of economic reports. Last time I checked, the market was
still supposed to be a discounting machine? Well, if that’s not the case, we
can always do the same ol’ thing within the market’s ‘confirmed rally’ that
we always do–namely disciplined, consistent daytrading.
Tomorrow it will be back to the frontlines, and back to the business of high-probability
daytrading. If it worked for you today, excellent. If it didn’t, don’t worry–stay
prepared, as the market’s Generals will be back to set the troops in motion.
By keeping ready to trade the classic continuation and reversal triggers in
our favorite stocks, we might not always win the battle, but we’ll surely be
there to win the war.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX | Quote | Chart | News | PowerRating) |
17.54 | down .08 | cvr 1 buy | 5% above | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
26.55 | up .06 | none | 4% above | Not At Extreme |
Hottest Sectors : Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
Wednesday’s 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 000’s | Today’s Volume |
| Garmin | ( GRMN | Quote | Chart | News | PowerRating) |
49.99 | Top of range consolidation on hammer test of Fibonacci and EMA supports |
457 | 345 |
| Aspect Communications | ( ASPT | Quote | Chart | News | PowerRating) |
14.01 | Engulfing bullish w/ volume confirmation, off 4 day p/b from highs |
603 | 857 |
| PetsMart | ( PETM | Quote | Chart | News | PowerRating) |
26.60 | Top of range close on 4 week b/o of daily consolidation | 1,752 | 1,710 |
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 000’s | Today’s Volume |
| Sina.com | ( SINA | Quote | Chart | News | PowerRating) |
35.26 | Bottom of range consolidation on technical b/d of price pivots on increased volume |
10,363 | 8,434 |
| SafeNet | ( SFNT | Quote | Chart | News | PowerRating) |
34.25 | Bottom of range consolidation, closing on prior price supports as stock looks to resume dowtrend after multiday pullback |
309 | 200 |
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 |
| QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
56.96 | 4,336 | 4,506 |
| KLA-Tencor | ( KLAC | Quote | Chart | News | PowerRating) |
58.98 | 8,707 | 6,380 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) |
54.13 | 8,410 | 7,797 |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) |
25.80 | 57,341 | 64,988 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler