Tuesday’s Top Stocks
The buying spree that consumers participate in the day after Thanksgiving ‘has
nothing’ on the buying enthusiasm of investors, as today marked the first full
session for most of Wall Street (since early last week)–and by the looks of
it, they came in anxious for bargains. Is the tryptophan still playing games
on the institutional crowd? Most of them did probably have a little extra with
the spare time away from their trading desks. Dunno, but it is a fact that today
investors came in buying for the start of the holiday season. Monday ushered
in a gap opening higher, that ultimately parlayed itself into a 1% to 1.5% gain
on the day in our index friends. With volume coming in stronger (duh), but also
above average in our favorite index, the Nasdaq and the S&P 500 leading
the way to fresh 52-week highs on volume that also managed to keep on pace with
its 50-day moving average–it’s your choice, either ‘YAHOO’ or ‘Ho Ho Ho.’
Personally, I was surprised to find all the good-looking quality bases out
there as I did my research this weekend. I know, the bears (grrr) aren’t thrilled
about this, but I just deliver to you what I see, courtesy of my TC2000. Sure
the rally’s not perfect, but is it ever? ‘Oh yeah, CNBC gave us the bottom two
Friday’s ago’–yeah, right. But, truth be told, if you bother to read my IT
perspective (it’s there for your perusal–either for reading or burning) , I
laid out my attitude of being aggressive with growth stock breakouts over a
week ago–and if I do remember correctly, there was a whole lot of grumbling
at that time as well (hmmm, or was it growling? grrrr).
Well, all I can say is that they’re (the bears) a bit closer time-wise at least,
as a few more days have passed and the market is at higher levels within its
‘confirmed rally.’ I do think the market is a little bit less perfect for outright
‘buy-and-hold’ type purchases, but that’s just my preference for buying strong
stocks or reversals as the broader market is supposed to be crashing, but in
actuality, is really just doing the testing thing. Who knows? I’m sure the bears
will get their day again as it has been quite some time, but for now it’s still
the bulls’ turn. Seriously though, with all the nasty cross currents of who
is in control of the market–why not make it your day, each and every trading
session? By concerning yourself with the discipline and consistent behavior
it takes to trade the market profitably intraday, you can keep the opinion at
the door and your trading as a gift from the present, courtesy of both the bulls
and bears in the marketplace.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
15.97 | down .74 | cvr 6 sell | 12% below | at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
26.16 | up .53 | cvn 2 sell | 6% below | not at extreme |
Hottest Sectors : Gold/Silver (XAU) and Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors :Â Retail
(
RTH |
Quote |
Chart |
News |
PowerRating)
Tuesday’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 |
| Nam Tai | ( NTE | Quote | Chart | News | PowerRating) |
40.91 | High volume b/o of weekly basing pattern to close at highs of session |
1,026 | 2,534 |
| Celgene | ( CELG | Quote | Chart | News | PowerRating) |
47.64 | Daily handle b/o on volume, closing top of range consolidation | 1,789 | 1,744 |
| Paccar | ( PCAR | Quote | Chart | News | PowerRating) |
81.86 | Closing high of day, approx .5% from weekly pattern b/o levels |
914 | 1,140 |
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 |
| Jos. A. Banks | ( JOSB | Quote | Chart | News | PowerRating) |
36.70 | Engulfing bearish off technical news reversal, closing bottom of range consolidation on heavy volume |
310 | 1,528 |
| Cray | ( CRAY | Quote | Chart | News | PowerRating) |
9.63 | Engulfing continuation bar lower on volume, closing low of day |
1,149 | 2,427 |
| Silicon Labs | ( SLAB | Quote | Chart | News | PowerRating) |
48.97 | Bottom of range consolidation on volume increase, below key moving averages |
1,261 | 961 |
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 |
| Take-Two Interactive | ( TTWO | Quote | Chart | News | PowerRating) |
34.08 | Reverse head and shoulders 30-min. extended chart on increased volume, off technical reversal daily chart |
1,451 | 1,957 |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| Sandisk | ( SNDK | Quote | Chart | News | PowerRating) |
79.06 | Engulfing bearish bar thru 20-day ema on volume, closing bottom of range |
3,769 | 4,265 |
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 |
| Gilead | ( GILD | Quote | Chart | News | PowerRating) |
60.17 | 4,462 | 3,177 |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
44.21 | 13,583 | 10,298 |
| Nextel | ( NXTL | Quote | Chart | News | PowerRating) |
26.29 | 17,148 | 17,713 |
| Mercury Interactive | ( MERQ | Quote | Chart | News | PowerRating) |
48.36 | 3,529 | 2,557 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) |
25.84 | 64,447 | 101,637 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler