Thursday’s Top Stocks
I guess you could say that the bulls dominated Wednesday’s trade, based on
the closing prices in our ETF friends, but I have to say that the price action
of individual issues was a little less forthcoming with its verdict for today’s
trade. With the index proxies up between 1.75% to 2.50% on above-average
volume, the home town heroes, da’ bulls were suited up and ready to play after
being sidelined by a very grizzly attack. It might not go down as a ‘follow-thru’
day, but nonetheless with NYSE issues screaming ‘Yahoo!!!’ at nearly a 5:1
margin in favor of advancers, we don’t mind if you do as well, and hopefully
you did, in today’s action.
With today’s leadership being found outside many of our recent favorite growth
stock names (SINA, DNA, UNTD,CYMR,TALX to name a few), and many of the associated
sectors green but lagging,
from a trading standpoint it was odd to say the least. I can
say that
breakouts
on volume started to work once again, as
evidenced
by
some
of
the
other growth stock names that I keep under wraps for TM’s Intermediate Report.
That’s the good news. But, considering some of the head scratching from the
forementioned
enigma, all I can say is strange
days
are upon us now, and why bother with anything
else other than disciplined, consistent daytrading?
The Boys of Summer are still playing well into the Fall, as evidenced by the
curve balls being pitched today. Thankfully, being prepared ahead of time keeps
us in the game. Today for instance I personally dug into another list of names
(top secret Intermediate-Term list) that better reflected today’s upside market
action. With some names from this group that were performing strongly
out of classic intraday patterns, I personally didn’t mind taking a look at
a fresh roster of recruits that I knew were ready to win the game in today’s
trade.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
22.01 | down 1.76 | none | 1% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
31.33 | down 1.50 | none | 4% above | not at extreme |
Hottest Sectors : Homebuilders (HGX) and Broker/Dealers (XBD)
Weakest Sectors : Gold/Silver (XAU)
Thursday’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 |
| Whole Foods Market | ( WFMI | Quote | Chart | News | PowerRating) |
57.01 | Top of range close on above-average volume, thru b/o pivot of mid-level daily handle by approx 1% |
819 | 893 |
| New Century Financial | ( NCEN | Quote | Chart | News | PowerRating) |
30 | strong volume b/o of daily handle pivot, to close at high of day |
847 |
1,444
|
| Quest Software | ( QSFT | Quote | Chart | News | PowerRating) |
12.93 | Top of range consolidation on strong volume, within ‘triggered’ daily Cup & Handle |
1,333 | 2,928 |
| Genaera | ( GENR | Quote | Chart | News | PowerRating) |
5.03 | MACD crossover on relative volume increase, closing in top of range consolidation within 5-week congestion pattern |
1,029 | 975 |
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 |
| Findwhat.com | ( FWHT | Quote | Chart | News | PowerRating) |
16.01 | Ascending triangle bottom off daily technical support zone on heavy volume |
715 | 2,298 |
| PEC Solutions | ( PECS | Quote | Chart | News | PowerRating) |
14.90 | Extended 30-min. chart symmetrical triangle at bottom of technical ‘Triple Crown’ support zone, on increased volume |
370 | 270 |
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 |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
36.40 | 12,191 | 17,691 |
| Symantec | ( SYMC | Quote | Chart | News | PowerRating) |
65.97 | 3,685 | 4,284 |
| Mercury Interactive | ( MERQ | Quote | Chart | News | PowerRating) |
47.60 | 3,166 | 4,069 |
| JP Morgan | ( JPM | Quote | Chart | News | PowerRating) |
35.38 | 8,622 | 10,544 |
| Nextel | ( NXTL | Quote | Chart | News | PowerRating) |
19.51 | 17,842 | 29,689 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Genetech | ( DNA | Quote | Chart | News | PowerRating) |
79.72 | 2,623 | 4,763 |
| Sina | ( SINA | Quote | Chart | News | PowerRating) |
35.26 | 9,779 | 22,582 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler