Friday’s Top Stocks
Just another day of ‘easy come, easy go’–within the confines of a ‘confirmed
rally.’ Today, all said and done, the bulls ended up graciously bowing out to
‘Da Bears as a late-afternoon selloff left the market closing at session lows,
down between .83% to .93%. The bulls did have more than their share of fun before
the party ended. Intraday triggers out of opening reversal patterns kept the
early selling pressure due to geopolitical concerns in check, as a nice rally
off the now fourth test of supports was established in today’s trade. The fact
that we ended up closing here isn’t exactly the prettiest-looking thing within
the market’s ‘confirmed rally’, but considering the lighter volume, the fact
that it is ‘still’ just a pullback–this cautious bull still likes his ‘edge’
from the long side.
I don’t know why, but during the past several months of the market’s ‘confirmed
rally’, I’ve had more success trading from the long side. Maybe it’s buying
pullbacks into price supports, known to a few traders as ‘reversal plays’, or
maybe it’s trying my hand at breakouts–but personally speaking, it’s been a
better endeavor than just calling a top–I just don’t call that ‘edge.’ Will
I try my hand at this game, sure–if I see my edge in it, then it will be considered.
That means through a combination of price action, volume, patterns, Fib levels,
and other technical tricks, when the pretty charts tell me something special,
then I’m all ears. As a matter of fact, I did listen to the siren song of calling
a top not so long ago, in the semiconductors
(
SMH |
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PowerRating)–and then I ended up
taking in the edge–in the form of a 1% loss. Maybe it’s not your edge, but
that’s OK, cuz’ ultimately the real edge is in trading the intraday bull and
bear, through our consistent, disciplined brand of daytrading.
Hey, did it turn out exactly as you planned? Not for me, but that continues
to be quite all right. Even if you couldn’t see today’s topping action right
as it was happening, our edge continues to be in the form of disciplined, consistent
daytrading–so what else really matters? Bulls and bears were once again able
to make ‘kachingo’ on the intraday time frame, as long as they didn’t let that
third little critter poke its way onto their sheets. Sure, we like to believe
our newest position is going ‘to the moon Alice’, but the reality of it is that
we take what the market gives us–both on the way up, and sometimes, when our
rocket ship is running out of gas, on the way down. All that we really want
on a daily basis is to take in a bit more of the good vs. the bad–and for me,
it sounds like a much better plan to parachute while you still can, and not
after the Eagle has landed.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
19.96 | up .51 | cvr 6 buy | 8% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
30.18 | up .22 | cvn 1,3 buy | 10% above | At Extreme |
Hottest Sectors : NA
Weakest Sectors :Â Semiconductors
(
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PowerRating) and Pharmaceuticals
(
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Friday’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 |
| Digital Insight | ( DGIN | Quote | Chart | News | PowerRating) |
20.65 | High volume b/o of 123 reversal pattern on strong volume, closing in extended 30-min cup and handle pattern |
560 | 1,920 |
| KVH Industries | ( KVHI | Quote | Chart | News | PowerRating) |
28.98 | Inside bar off hammer test of technical supports, within daily handle, on strong relative volume increase |
347 | 287 |
| NII Holdings | ( NIHD | Quote | Chart | News | PowerRating) |
69.72 | Top of range close on volume reversal bar above technical m.a. resistance |
399 | 651 |
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 |
| Cray | ( CRAY | Quote | Chart | News | PowerRating) |
10.85 | Low of day daily breakdown of angular supports on increased volume |
1090 | 1,383 |
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 |
| Sina.com | ( SINA | Quote | Chart | News | PowerRating) |
32.60 | 10,569 | 15,285 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) |
25.10 | 61,928 | 106,847 |
| Amazon | ( AMZN | Quote | Chart | News | PowerRating) |
48.85 | 10,395 | 12,353 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler