Friday’s Top Stocks

  • May 22, 2003
  • Chris Tyler

The ETFs made good on their
technical follow through off of yesterday’s “inside day.” After
testing initial price supports in Tuesday’s trade, Thursday witnessed an initial
thrust higher in the opening hour of trade. Positive news in the software sector
(
SWH |
Quote |
Chart |
News |
PowerRating) from Synopsys
(
SNPS |
Quote |
Chart |
News |
PowerRating), and positive analyst spins on relief for
Altria
(
MO |
Quote |
Chart |
News |
PowerRating), as well as dividend speculation for the homebuilders (CTX), (KBH),
(LEN), fueled today’s upside action. Much of the trade for the remainder of the
session was marked by lateral churn, but keeping the averages well in the green
for the closing bell. All three ETFs were up around the 1% mark on solid, above
average volume, and market breadth statistics approaching a favorable 2:1.

Solid volume, nice market breadth, and sound
price action off of technical supports, what more could a trader ask for? Well,
why don’t we ask Mr.Softy
(
MSFT |
Quote |
Chart |
News |
PowerRating), General Electric
(
GE |
Quote |
Chart |
News |
PowerRating), Merrill Lynch
(
MER |
Quote |
Chart |
News |
PowerRating),
or GM
(
GM |
Quote |
Chart |
News |
PowerRating) for that matter. Where’s the love for these titans of commerce?
Better yet, let’s have someone else worry about that while we continue to focus
on those issues that are working for daytraders in the here and now. By keeping
our list of High and Low RS stocks up to date, and then waiting to take action
as high-probability setups trigger the next day, we can sing the praises of Mr. Bobby
McFerrin…”don’t worry, be happy,” while the “other guy” hopes that
his portfolio might go along for the ride in tomorrow’s session.

Volatility Readings:

Volatility
Index		 Close Net
Change		 Signals/Direction %
Above/Below 10 Day Moving Average		 Significance
VIX 21.62 Down
1.59		      
None		 3%
Below 		 Not
At Extreme
VXN 30.11 Down
.77		       None 5.5%
Below
Not At Extreme

 

Hottest Sectors:  Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating) and Internet
(
HHH |
Quote |
Chart |
News |
PowerRating) 


Weakest Sectors: Gold and Silver Index
(
$XAU.X |
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.




class=890430920-15102001>









class=890430920-15102001>









































size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001> size=2 Helvetica face=”Arial”>Price Technical
Strength		 class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume

Avid Technologies 

(
AVID |
Quote |
Chart |
News |
PowerRating)
28.85
52-Week High , top of
range
723k
544k

class=890430920-15102001>
KB Homes
class=890430920-15102001>

(
KBH |
Quote |
Chart |
News |
PowerRating)
class=890430920-15102001>
55.36


class=890430920-15102001>
52-Week High, volume
surge, top of range
class=890430920-15102001>
919k


class=890430920-15102001>
2,140m


class=890430920-15102001>
Digital River
class=890430920-15102001>

(
DRIV |
Quote |
Chart |
News |
PowerRating)
class=890430920-15102001>
18.14
class=890430920-15102001>
Slim Jim at highs, reversal bar off daily pivot test
in Wednesday’s session
class=890430920-15102001>
1,188m


class=890430920-15102001>
1,278m


class=890430920-15102001>
OmniVision
class=890430920-15102001>

(
OVTI |
Quote |
Chart |
News |
PowerRating)
class=890430920-15102001>
30.15
class=890430920-15102001>
Slim Jim near highs on reversal follow thru
class=890430920-15102001>
1,347m
class=890430920-15102001>
951k


class=890430920-15102001>
Cognos
class=890430920-15102001>

(
COGN |
Quote |
Chart |
News |
PowerRating)
class=890430920-15102001>
25.83
class=890430920-15102001>
Slim Jim on daily continuation bar out of ‘spinning
tops’ technical reversal with volume increase
class=890430920-15102001>
1,156m


class=890430920-15102001>
1,176m

 




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.

class=890430920-15102001>



























size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001> size=2 Helvetica face=”Arial”>Price Technical
Strength		 class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume

CACI International 

(
CAI |
Quote |
Chart |
News |
PowerRating)
30
Closed at March pivot lows
on volume surge
470k
1,015m

Imation

(
IMN |
Quote |
Chart |
News |
PowerRating)
32.25
Closed weak below YTD
pivot supports
380k
536k

 



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 1,2,3s
,Slim Jim (SJ)
consolidations, and Triangles. 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.




class=890430920-15102001>









class=890430920-15102001>









size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001> size=2 Helvetica face=”Arial”>Price Technical
Strength		 class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume

Silicon Labs 

(
SLAB |
Quote |
Chart |
News |
PowerRating)
26.60
Intraday closing flag from
daily test of technical supports, hammer daily
1,273m
919k

 


class=890430920-15102001>Short
Reversals
 Closing Basis.



class=890430920-15102001>
None Today.




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, pattern (Slim
Jims), or last hour volume surges, indicative of follow through in the very near term.

Institutional
Favorites 






































size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001> size=2 Helvetica face=”Arial”>Price class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume

USA Interactive 

(
USAI |
Quote |
Chart |
News |
PowerRating)
35.70
10,383m
14,304m

Amazon

(
AMZN |
Quote |
Chart |
News |
PowerRating)
33
9,840m
8,494m

Teva Pharmaceuticals

(
TEVA |
Quote |
Chart |
News |
PowerRating)
48.25
2,708m
2,363m

Target

(
TGT |
Quote |
Chart |
News |
PowerRating)
33.69
4,928m
4,105m

 

Institutional
Laggards.































size=2 Helvetica face=”Arial”>Name

 class=890430920-15102001>Symbol
class=890430920-15102001> size=2 Helvetica face=”Arial”>Price class=890430920-15102001>Average
Volume 		class=890430920-15102001>Today’s
Volume

Microsoft 

(
MSFT |
Quote |
Chart |
News |
PowerRating)
24.14
62,519m
91,974m

Johnson & Johnson

(
JNJ |
Quote |
Chart |
News |
PowerRating)
53.38
7,501m
8,110m

Eli Lilly

(
LLY |
Quote |
Chart |
News |
PowerRating)
57.73
3,291m
5,727m

      

 

Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.


P.S. I’ve
just released a new trading module on Intra-day Breakouts. If
you’d like more information, click
here.