Monday’s Top Stocks
I think I’ll steal from an Intermediate-Term report that I wrote last Friday.
I began that report with the opening sentence, ‘Oh Yahoo!!’…and I mean that
quite seriously, although the pun was intended.’ It seems my own excitement
over the market back then was very much prescient, as today the Nasdaq Composite
gave investors an official FTD or Follow-Thru-Day. Today’s trade marked the
seventh session of higher highs, six days after the market turned up on a reversal
bar that Mr.Bill calls an ‘attempted rally day.’ Hmmm, I guess seven really
is lucky after all. On the day, the S&P and Nasdaq Composite both gapped
higher and rallied with conviction as both were up .85% to a whopper 2.09% respectively.
As implied by the FTD action in the Naz, the big boys were buying it big time
on increased, above-average volume–and that definitely deserves another great,
big ol’ ‘Oh Yahoo!!’
Crazy how fast oversold becomes quickly overbought. When the market was doing
its impression of a tank not so long ago, it seemed all valid support levels
were being blasted through, with little respect for the integrity of trendlines,
MAs, and Fibonacci analysis as oversold begot more oversold. Now, especially
after today–we have the exact same situation occurring, but to the upside–as
overbought becomes more overbought. Crazy stuff, and personally speaking–being
a cautious bull I didn’t come in long any existing positions that weren’t already
comfortably seeing the plus column. Do I feel like I missed the proverbial boat?
Nah, there’s plenty of opportunity still in the works–and by that I mean growth
stocks that are still setting up quite nicely within constructive basing patterns.
Plus, if I did feel like I missed the raging bull boat in today’s trade–I can
always go back and focus on consistent, disciplined daytrading tactics.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
15.56 | down 1.59 | cvr 1,3 sell | 14% below | at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
21.49 | down 1.92 | cvn 3 sell | 12% below | at extreme |
Hottest Sectors : Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Gold/Silver (XAU)
Monday’s stocks to watch:
Technical Strength.
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 |
| Polymedica | ( PLMD | Quote | Chart | News | PowerRating) |
28.84 | High of day close on increased, above-average volume continuation bar, clearing pivot resistance within weekly base |
273 | 610 |
| Serological | ( SERO | Quote | Chart | News | PowerRating) |
20.87 | Increased, above-average volume doji w/in 3.5 week high level base |
574 | 683 |
| Euronet | ( EEFT | Quote | Chart | News | PowerRating) |
19.75 | Top of range consolidation on increased, above average volume daily handle b/o |
159 | 688 |
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 Strength | Average Volume 000’s | Today’s Volume |
| Whole Foods | ( WFMI | Quote | Chart | News | PowerRating) |
75.10 | inside day consolidation within daily chart pullback from lows |
719 | 791 |
| Investors Financial | ( IFIN | Quote | Chart | News | PowerRating) |
40.16 | Bottom of range consolidation on increased, above average volume b/d of daily supports |
734 | 2,424 |
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 |
| Lexmark | ( LXK | Quote | Chart | News | PowerRating) |
91.71 | matching top reversal bar on increased volume, finishing bottom of range |
1,046 | 954 |
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 |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
50.15 | 10,171 | 11,298 |
| Broadcom | ( BRCM | Quote | Chart | News | PowerRating) |
41.41 | 9,789 | 8,413 |
| Citrix | ( CTXS | Quote | Chart | News | PowerRating) |
22.95 | 3,407 | 2,449 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Halliburton | ( HAL | Quote | Chart | News | PowerRating) |
30.02 | 4,486 | 4,443 |
| Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
59.75 | 4,727 | 5,870 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler