Friday’s Top Stocks
I was all prepared to deliver traders a special treat today, seeing how the
market, now in its third session of debilitating losses was unable to do
so. Unfortunately HTML really is a ‘hard to master language’, and I wasn’t able
to create something different for my audience out there. I guess the report will
have to mimic the market’s performance, meaning more of the same ol’ schtick for
both of us. In today’s session, after a solid attempt by the semiconductor
sector to rally the troops, it was in the end, another session that has become
even more oversold (at least this cautious bull thinks so) by most technical
measures. An afternoon reversal of fortune took its toll on any bullish reversal
attempts, putting our index friends at fresh lows–down between 1.52% and 1.63%
on yet again, increased and above-average trade. No yahoo yet from cautious
bull’s corner, just more of the usual disciplined, consistent daytrading
tactics.
As mentioned, I was all set to do something different for tonights report–a
series of intraday analysis on the semiconductor sector (SMH) concerning long
reversal trades in the morning. The reversal trade, or trades, regardless of
your time perspective could have resulted in some decent intraday gains. But, if
held thru the entire session it became more of a good lesson in stop loss
management. I guess you’ll just have to look up the original piece on our site,
under Live From TradersWire if you care to see some in-depth analysis of the set
ups. In the land of disciplined, consistent daytrading, there are always varying
shades of what constitutes a solid trade with edge. If you chose to use the
60-minute chart, like this cautious bull does, then the trade, while still
making sense–probably ended up making a little less ‘cents’ all said and done.
Oh well, tomorrow is yet another day for the greatest show on earth to provide
us with more solid opportunities.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
21.01 | up 2.21 | cvr 3,6 buy | 30% above | at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
26.53 | up .48 | cvn 3,6 buy | 10% above | at extreme |
Hottest Sectors : Gold/Silver (XAU)
Weakest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
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 |
| Encore Wire | ( WIRE | Quote | Chart | News | PowerRating) |
32.56 | Top of range close on increased, above-average volume within daily pullback |
120 | 610 |
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 |
| NA | NA | NA | NA | NA | NA |
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 |
| Semiconductor HOLDRs | ( SMH | Quote | Chart | News | PowerRating) |
38.76 | 123 bottoming pattern 60-minute chart, with lows established in daily support zone, 38 – 38.80 |
13,303 | 24,412 |
| August Tech | ( AUGT | Quote | Chart | News | PowerRating) |
15.16 | High of day on increased, above-average volume, recrossing 200-day ema after daily test of supports |
233 | 473 |
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 |
| Symantec | ( SYMC | Quote | Chart | News | PowerRating) |
42.74 | 4,120 | 6,244 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Electronic Arts | ( ERTS | Quote | Chart | News | PowerRating) |
45.76 | 4,674 | 3,545 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler