Friday’s Top Stocks
A three day high out of yesterday’s technical hammer reversal pattern, which
many technicians might have been expecting–set the stage for the market’s knack
to do the unexpected. With fractionally mixed closing figures around the unchanged
mark, after fresh highs were established in the morning, on volume that set
a Year-To-Date low on the Nasdaq and realistically not much better on the S&P500
cash–Thursday offered a retreat from yesterday’s tasty treat, and has this
cautious bull saying, ‘Yuch!! and not Yahoo!!’
It wasn’t a total loss as intraday range and some decent topping patterns
were actually coined by a few savvy traders. In my midday column I coined one of
these shorts, the ‘Forrest Dump’ trade. It was a very simple combination of
charts and common ‘cents’ that really added up–all the way down to retest the
morning lows. I will say this though, that it still wasn’t my best by any
stretch of the imagination. As I mentioned yesterday, that day’s trading was
almost too good to be true, and that defensive action was implied by that very
fact. Well in today’s trade, even with keeping it light and tight–this little
corner of the trading universe has seen better days. Oh well, realistically you
can’t win every battle. All we can do is say thanks for keeping us in the game,
hope for better conditions in the next session, and come in armed with the same
stuff that we bring in with us each and every day–namely disciplined,
consistent daytrading tactics.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
19.10 | up .61 | na | 6% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
27.63 | up .01 | cvn 6 buy | 5% above | not at extreme |
Hottest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating)
Friday’s stocks to watch:
Longs.
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 Assesment | Average Volume 000’s | Today’s Volume |
| Cree | ( CREE | Quote | Chart | News | PowerRating) |
20.90 | Top of range close, testing one week highs and angular downtrend line |
1,536 | 1082 |
| Avid Technology | ( AVID | Quote | Chart | News | PowerRating) |
50.27 | High volume reversal bar within weekly base | 612 | 1,068 |
| Novatel | ( NVTL | Quote | Chart | News | PowerRating) |
16.20 | Increased, above-average volume test of price and MA resistance off technical lows |
1,334 | 2,011 |
Shorts.
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 Assesment | Average Volume 000’s | Today’s Volume |
| Vimpel Communications | ( VIP | Quote | Chart | News | PowerRating) |
92.83 | top of range consolidation, closing against daily chart resistance from pullback from lows |
550 | 502 |
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 |
| Juniper | ( JNPR | Quote | Chart | News | PowerRating) |
22.50 | 14,015 | 8,214 |
| Lowes | ( LOW | Quote | Chart | News | PowerRating) |
50.42 | 3,780 | 5,342 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Electronic Arts | ( ERTS | Quote | Chart | News | PowerRating) |
50.71 | 4,034 | 4,478 |
| Eli Lilly | ( LLY | Quote | Chart | News | PowerRating) |
73.26 | 3,417 | 2,206 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler