Monday’s Top Stocks
Was it the Purchasing
Manager’s report out this morning that drove up the market, or was it
the purchases made by the “Funds” Purchasing Managers? The ‘Number’,
which surprised many on Wall Street pointed handily in favor of economic
expansion, and is viewed as the leading indicator for next weeks ISM index.
Hmmm, I wonder how folks will react to that ‘Number’? Just say, “Mooo.”
Apparently, there’s still some good feeding to be found up here in the ETF
pastures. The Spyders
(
SPY |
Quote |
Chart |
News |
PowerRating), Diamonds
(
DIA |
Quote |
Chart |
News |
PowerRating), and NASDAQ
100
(
QQQ |
Quote |
Chart |
News |
PowerRating) all closed up handily on the session, with gains centered around
the 1.5% figure, on decidedly heavy volume, and favorable market breadth
statistics. This was especially the case for the NASDAQ, which traded handily
over 2.2 billion shares, with advancers beating decliners by a margin of over
2:1. The gains were not lost on the NYSE, especially after yesterday’s drag on
the other indices, as volume also came in over 2 billion, and advancers over
decliners led the charge by a solid 3:1 margin.
So, once again, is it, or isn’t it? Though our beloved ETF
friends finished out the week on a positive note with their best closing numbers
of the year, I can’t help but feel that there is less and less (as far as
individual stock names go), that can be considered technically attractive. A lot
of very good names have made some very nice percentage runs over the last
several sessions, and while we like this from a position standpoint, and for
profit taking purposes, I would be very guarded as to taking on new portfolio
‘weightings’ at these levels. To me it feels as though everyone is afraid of
missing ‘The Big Red Boat’, several weeks into our market advance, and more
importantly, right into key technical daily and weekly resistance points.Â
But just in case I’m being ‘goofy’, all I can say
is, “thank goodness for daytrading.” Day in, day out, all we have to
do is stay with those High and Low RS issues that are leading the charge,
regardless if the direction is up or down for that particular session. So if the
‘boat’ decides to change course, or runs into something unsightly (resistance),
and sinks abruptly, we’ll still be safely afloat with our life preserver list
that we bring with us whenever we go out to trade on the open high seas of the
marketplace.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
21.70 |
down .79 | None |
2.5% Below | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
31.66 | up .24 | None | 3% Above | Not At Extreme |
Hottest Sectors :Â Oil
Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
and Biotechs
(
BBH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Internet
(
HHH |
Quote |
Chart |
News |
PowerRating) and Gold and Silver
(
$XAU.X |
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 |
| Quest Diagnostics | ( DGX | Quote | Chart | News | PowerRating) |
63.36 | Strong close near Cup and Handle B/O levels | 981k | 742k |
| Arch Coal | ( ACI | Quote | Chart | News | PowerRating) |
22.61 | Follow thru day Cup and Handle w/ confirming volume |
429k | 901k |
| Genesis Microchip |
( GNSS | Quote | Chart | News | PowerRating) |
19.02 | Daily High level base B/O on confirming volume |
1,536m | 3,379m |
| Marvel | ( MVL | Quote | Chart | News | PowerRating) |
22.24 | 52-Week High from daily consolidation w/Â volume |
1,099m | 1,931m |
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 |
| Walgreens | ( WAG | Quote | Chart | News | PowerRating) |
30.79 | Weak close below opening price on volume, with
technical overhead resistance |
3,361m | 3,193m |
| ZimmerÂ
Holdings |
( ZMH | Quote | Chart | News | PowerRating) |
44.86 | Wide Range Bar (WRB) on volume, below 50-Day EMA |
1,687m | 3,376m |
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.
Short
Reversals
Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
| Sohu.com | ( SOHU | Quote | Chart | News | PowerRating) |
28.02 | Ascending triangle finish to close as a ‘spinning top’ candle stick pattern on heavy volume |
1,554m | 3,430m |
class=890430920-15102001>
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 |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
33.55 | 14,981m | 17,078m |
| Novellus | ( NVLS | Quote | Chart | News | PowerRating) |
34.67 | 9,052m | 21,339m |
| Fifth Third
Bancorp |
( FITB | Quote | Chart | News | PowerRating) |
57.40 | 2,849m | 2,881m |
| Amazon | ( AMZN | Quote | Chart | News | PowerRating) |
35.94 | 9,653m | 9,967m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) |
24.61 | 61,158m | 76,956m |
| Wal Mart | ( WMT | Quote | Chart | News | PowerRating) |
52.66 | 8,398m | 10,167m |
| Pfizer | ( PFE | Quote | Chart | News | PowerRating) |
31.02 | 21,264m | 27,164m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.