Friday’s Top Stocks
Is it, or isn’t it? Our beloved ETF friends, the Spyders (SPY), Diamonds
(DIA), and NASDAQ
100 (QQQ) closed on a weak note after breaking out of Cup & Handle
patterns the last two sessions. I could swear I just recently saw greener
pastures, with lots of bulls eagerly feeding on our ‘stock crop’, but today’s
action looks to be a case of some cows having a mild bout of indigestion. After
establishing higher highs in early trade, intraday technical supports were
broken during the lunchtime hour (how appropriate) as key resistance zones have
proved to be a worthy opponent to our ‘confirmed rally’ from the March lows.
Volume was well above average on both major exchanges, with the NASDAQ
‘churning’ on the second highest volume of the year. The individual
index proxies closed on a mixed note. The Diamonds were down on the session, and
off on a percentage basis by about .75%. The Spyders followed suit, but were
only down fractionally, while the ‘churner’, the QQQs finished up ever so
slightly at .05%. Market breadth also had the earmarks of a churner as the NYSE
showed decliners with the slight lead over decliners, while our ‘other floor’
had advancing issues beating decliners by a slight margin as well.Â
You can almost hear the assuaging words of encouragement from the media (and
you probably will), that pullbacks or corrections are a good thing, so go ahead
and feel confident with your most recent additions, to your ‘weighted
portfolio’. And you know what? They’re right, but unfortunately it’s a ‘long’
and bumpy ride if you play the game to the music of Wall Street’s Pied Piper.
They’ve also been known ‘noted’ to play another game called musical chairs, and
that’s why we like to daytrade. By keeping to your list of High and Low RS
issues, and then executing the next trading day, as the setups appear, we get to
participate profitably in the what is really happening, and not get caught up in
the siren song that the Street is singing to Johnny Come Lately.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
22.49 |
up .49 | None |
1% Above | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
31.42 | up 1.20 | CVR 6 Sell |
2% Above | Not At Extreme |
Hottest Sectors :Â Gold and Silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating)
and
Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Utilities
(
UTH |
Quote |
Chart |
News |
PowerRating) and Oil
Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
Friday’s HELVETICA>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 | Today’s Volume |
| Digital River | ( DRIV | Quote | Chart | News | PowerRating) |
19.36 | 52-Week High, Intraday High-Level Double Bottom |
1,214m | 1,328m |
| Arch Coal | ( ACI | Quote | Chart | News | PowerRating) |
21.80 | B/O Cup & Handle daily on volume, close Top of range |
417k | 1,621m |
| NVIDIA | ( NVDA | Quote | Chart | News | PowerRating) |
24.21 | Range B/O, Year-To-Date High w/ volume |
9,296m | 19,103m |
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 | Today’s Volume |
| Eon Labs | ( ELAB | Quote | Chart | News | PowerRating) |
27.02 | Daily B/D on volume below 50-Day EMA | 297k | 646k |
| Biomet | ( BMET | Quote | Chart | News | PowerRating) |
38.05 | Reversal out of candle reversal pattern against 200-Day EMA, to close weakly |
2,179m | 2,615m |
| Safeco | ( SAFC | Quote | Chart | News | PowerRating) |
36.08 | Closed at daily range supports in established
downtrend |
777k | 599k |
| Health Care
Properties |
( HCP | Quote | Chart | News | PowerRating) |
38.05 | Consolidation at lows on Wide Range Daily bar
below 200-Day EMA |
349k | 360k |
class=890430920-15102001>
class=890430920-15102001>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.
class=890430920-15102001>Long Reversals class=890430920-15102001>Closing Basis.
None Today.
Short
Reversals
Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
| Centex | ( CTX | Quote | Chart | News | PowerRating) |
76.20 | Weak close on bearish engulfing w/ volume | 1,234m | 1,992m |
| Avid Technology | ( AVID | Quote | Chart | News | PowerRating) |
33.24 | ‘Shooting star’ candle type close on heavy
volume |
748k | 1,496m |
class=890430920-15102001>
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 | Today’s Volume |
| Intel | ( INTC | Quote | Chart | News | PowerRating) |
20.83 | 58,181m | 120,627m |
| Veritas | ( VRTS | Quote | Chart | News | PowerRating) |
27.24 | 9,171m | 12,369m |
| QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
49.36 | 6,661m | 6,786m |
| Nextel | ( NXTL | Quote | Chart | News | PowerRating) |
15.10 | class=890430920-15102001>22,705m | class=890430920-15102001>19,615m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) |
24.40 | 61,094m | 74,505m |
| 3-M Company | ( MMM | Quote | Chart | News | PowerRating) |
123.34 | 2,730m | 2,169m |
| Caterpillar | ( CAT | Quote | Chart | News | PowerRating) |
50.50 | 2,159m | 3,186m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.