Tuesday’s Top Stocks
Â
Oh, the irony. On a day
when the casino sector was perpetually out of luck, and in the red, investors didn’t mind
coming in Monday morning, and rolling
the dice in issues that are more likely to be called crapshoots, than even those
other other miscalculated bets called long shots. What I mean to say is, when
the likes of Internet Capital Group
(
ICGE |
Quote |
Chart |
News |
PowerRating), an incubator for all those
fallen companies of years gone by is moving up to 52-Week Highs, there just
might be a little bit of froth in the marketplace. The positive spin on this, is
that the broader market, and the participating index proxies such as the Spyder
(
SPY |
Quote |
Chart |
News |
PowerRating), Diamond
(
DIA |
Quote |
Chart |
News |
PowerRating), and NASDAQ
100
(
QQQ |
Quote |
Chart |
News |
PowerRating) once more notched relative highs in Monday’s trade. Initial sector
strength from the Broker / Dealer and Biotechnology sectors, lent a hand in this
mornings broad based rally to higher highs, before the final hour
of trade had many of our ‘bettors’ cashing in their chips. Closing figures have
our ETF friends finishing mixed on the session. Leadership from the QQQs, and
its usually, high relative strength technology subcomponents, felt the effects
of an afternoon bout of profit taking, which in turn, had the best performing
ETF down
about .7% by the closing bell. The DIAs and SPYs were able to fare somewhat better today, as the
afternoon ‘profit taking’ had the two well off their best levels, but still
above water, with gains of roughly .50%. It was another day marked by strong
volume, and breadth statistics that still managed to hold in favor of those
betting on hope. Anyone care for a ‘spin of the wheel’ at the roulette table?
I’m not here to rock the boat, I’m just here to
be your guardian angel. I love the uptrend as much as the next guy, but I will
remind you that the market works in a series of ebbs and flows. Even in uptrends
like this one now, when you have money managers acting like anxious school
children, ready to hop on board their favorite ride, it’s not unusual to find
that the ‘machine’ turns off, at
least temporarily, as the kids (money managers) run out of money, or are forced
to report back home, after having so much fun. From the ‘confirmed rally’ off
the March lows, the ETFs have done a masterful job of racking up large
percentage gains off of the ‘doom and gloom’ never ending abyss that was the
market for three years. The ETFs have climbed a wall of worry, and now several
weeks later, things couldn’t look better, and blah, blah, blah…yeh, right. The
point that I’m trying to get across is, remember to take heed in the words, ‘let
the buyer beware’. The seeds have been planted for a nice sturdy uptrend to
persist, but that doesn’t mean the occasional branch can’t snap off, especially
when there’s so many climbing on board all at the same time.
Fortunately, as daytraders, we get to take each
day as it’s presented to us, during the next trading session. When today’s ride
becomes yesterday’s obsession, we’ll still be first in line to hop on the newest
and greatest ride, by always maintaining our list of High and Low RS issues. Let
the other kids play on the merry go round. We’ll continue to go to the bank by
executing those quality issues that are demonstrating the latest and greatest,
whether that means a slippery ride down the slide, or a powerful thrust higher
off the moon shot ETF ride.Â
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
22.23 |
up .53 | CVR 1 Sell | 0% below | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
33.63 | up 1.97 | None | 7% above | Not At Extreme |
Hottest Sectors :Â Retail
(
RTH |
Quote |
Chart |
News |
PowerRating) and
Telecom
(
TTH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Internet
(
HHH |
Quote |
Chart |
News |
PowerRating) and
Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Tuesday’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) |
65.43 | Daily B/O with high level intraday double bottom |
979k | 1,098m |
| Intercept | ( ICPT | Quote | Chart | News | PowerRating) |
8.01 | Daily B/O of trading range, close at session highs |
313k | 949k |
| Timberland | ( TBL | Quote | Chart | News | PowerRating) |
51.31 | Closed near highs of day, on test of angular resistance daily chart |
345k | 340k |
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 |
| Sohu.com | ( SOHU | Quote | Chart | News | PowerRating) |
25.86 | Wide Range bearish engulfing bar with volume | 1,604m | 3,433m |
| ZimmerÂ
Holdings |
( ZMH | Quote | Chart | News | PowerRating) |
43.34 | Near test of daily pivot lows on weak intradayÂ
action with confirming volume |
1,725m | 3,746m |
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.
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 |
| Capital One | ( COF | Quote | Chart | News | PowerRating) |
51.51 | 4,360m | 7,300m |
| Altria | ( MO | Quote | Chart | News | PowerRating) |
42.12 | 14,511m | 9,026m |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) |
38.51 | 6,577m | 6,772m |
| Best Buy | ( BBY | Quote | Chart | News | PowerRating) |
39.97 | 4,115m | 5,087m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Johnson & Johnson | ( JNJ | Quote | Chart | News | PowerRating) |
53.22 | 7,543m | 8,486m |
| Intuit | ( INTU | Quote | Chart | News | PowerRating) |
44.76 | 5,642m | 4,059m |
| Eli Lilly | ( LLY | Quote | Chart | News | PowerRating) |
58.15 | 3,399m | 4,715m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.