Monday’s Top Stocks
No bull today, don’t let the numbers fool you. Although our ETF friends were
fractionally mixed in today’s session, between up .05% to a slightly down .33%,
more growth stocks were hammered for a second straight session. The green pastures
of growth have been swamped by a very ugly red tide. As a matter of fact, our
TV friends on CNBC just mentioned that the Nasdaq experienced its worst week
in over 17 months…’whoa.’ Anyways, within the ‘confirmed uptrend’, volume
was lighter once again, but still above average on not-so-mixed market breadth
numbers of greater than 2:1, suggesting that the market’s ‘red bull’ is definitely
in need of ‘some’…a quick pick me up treat, just like the refreshing beverage.
Relax people, it’s still profit-taking over
at IBD…fuhgettaboutit. With barely a growth stock left unscathed by the market’s
recent action, you’d think the indices were back down at the March lows. Fortunately,
you’d be wrong as the ETFs are still hanging in there, within a very oversold
market condition. Remember, 10% or less still constitutes a pullback
within a confirmed rally, though you might want to reconsider that benchmark
when it comes to repositioning your own portfolio. If you trade growth
stocks, tighter sell rules based on the individual
flavor
of
the
day always makes more sense within a ‘confirmed rally.’
You might not get to ride a stock up into a 1000% percent winner, but then
again, names like Sohu.com
(
SOHU |
Quote |
Chart |
News |
PowerRating) won’t be sounding like ‘Boohoo’.com
when investors decide to make China ‘red’, once again.
I love MM so much, I just might have it tattooed. Especially in an environment
that becomes ‘unglued’ in a short period of time, it’s imperative to always
be thinking about the ol’ MM. Aww schucks, you know what I mean by now. Not
the Market Maker, not Marilyn Monroe (hmm, maybe), just good ol’ money management
within
your disciplined, consistent brand of daytrading. As we continue to ‘test’
technical levels and the fortitude of bullish investors everywhere, we
have to remember that, as daytraders, neither
today’s nor tomorrow’s session are
tests for us, but merely more of the same ol’ disciplined, consistent action
that we use for our very own, real brand of ‘profit-taking’ each and every
day.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
23.80 | up .44 | CVR 1,3,6 Buy | 14% above | at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
30.88 | up .23 | none | 2.5% above | NA |
Hottest Sectors : Utilities
(
UTH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Gold/Silver (XAU) and Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
Monday’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 |
| Zygo | ( ZIGO | Quote | Chart | News | PowerRating) |
15.02 | Top of range close at 52-week trading range b/o levels on substantial volume |
96 | 386 |
| FPL Corp | ( FPL | Quote | Chart | News | PowerRating) |
62.81 | Top of range consolidation within 1% of trading range b/o levels on above average volume |
896 | 1,110 |
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 |
| Scientific Atlanta | ( SFA | Quote | Chart | News | PowerRating) |
31.60 | Low level consolidation off daily technical supports: Aug 62% retrace. and 50-Day EMA |
2,208 | 1,686 |
| eSpeed | ( ESPD | Quote | Chart | News | PowerRating) |
23.19 | Hammer daily test of 38% and 50-day EMA on volume | 383 | 424 |
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 |
| Adobe | ( ADBE | Quote | Chart | News | PowerRating) |
40.65 | 3,140 | 4,405 |
| Merck | ( MRK | Quote | Chart | News | PowerRating) |
50.83 | 6,240 | 5,641 |
| General Electric | ( GE | Quote | Chart | News | PowerRating) |
29.87 | 18,637 | 22,434 |
| 3M | ( MMM | Quote | Chart | News | PowerRating) |
145.45 | 2,036 | 3,098 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
41.65 | 10,667 | 10,327 |
| KLA Tencor | ( KLAC | Quote | Chart | News | PowerRating) |
51.79 | 8,821 | 10,238 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler