Friday’s Top Stocks
Like clockwork it happens. A few kind words from our ‘it’s never too late
to upgrade’ Wall Street brokerage friends pinpointed select technology issues,
keeping the Nasdaq’s series of 52-Week highs intact in Thursday’s
trade. All of our ETF friends managed to hold on to their recent gains,
in a second
session
marked by low volatility consolidation work within the index proxies. Fractional
gains between .05% and .91% saw strong volume for the second day in a row,
albeit at lesser levels than Wednesday’s trade. More telling of the portfolio
rearranging were the ‘more neutral’, but still positive market breadth statistics,
in this the seventh day of our most recent upleg.
Still some quacking during the first part of the session which spelled out
some tremendous intraday opportunities, but that’s as committed as you’ll
see
me get with
this market, for the moment. With major overhead resistance looming, I
personally don’t mind ducking for some cover. The natural cycle of
the market’s ebbs and flows usually dictates something more than a two day
pause after nearly a month-long beeline higher
off of technical supports. This doesn’t mean I’m forecasting
doom and gloom. The volume levels are good, breakouts
have been triggering (for weeks now btw), and moving higher, or consolidating
in solid fashion, and we are in a ‘confirmed uptrend’ within the market. If
you look at the weekly charts of the ETFs, they don’t even look ‘extended’
or overbought, when viewed in the context of the summer-long consolidation.
But remember this, a ‘welcome’ 1% to 3% pullback in the indices can mean
10% to
20% in many of the quality names that lead us in the right
direction in the first place, and that can hurt, even if it is ‘only a pullback.’
Just a friendly word of caution to keep it light and tight and have your stops
in place on
existing
positions.
Maybe
we
won’t
get
what ‘I think’ is necessary for the market to proceed higher, but that’s
alright in the scheme of things, as long as we continue to get our RDA of consistent,
disciplined daytrading. Come ‘pullback or breakout’
in tomorrow’s trade, we’ll continue to prosper best by trading the ‘what is’
out of classic patterns, and not the ‘what should be’ in the back of our heads.
In order to play the intraday game best, it’s all about picking ‘the girl against
the wall that everyone else finds to be the prettiest’, and not the one that
we most want to marry all for ourselves at some later date.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX | Quote | Chart | News | PowerRating) |
19.89 | down .54 | none | 0% above | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
30.91 | down .28 | CVR 1,2 Buy | 3% above | Not At Extreme |
Hottest Sectors : Gold/Silver (XAU) and Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
Friday’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 |
| Varian | ( VSEA | Quote | Chart | News | PowerRating) |
41.43 | 2-Week ascending triangle, near b/o levels on stronger volume |
968 | 1,025 |
| Biosite | ( BSTE | Quote | Chart | News | PowerRating) |
49.06 | Top of range close above recent price pivots within daily Cup and handle |
515 | 357 |
| EarthLink | ( ELNK | Quote | Chart | News | PowerRating) |
8.42 | Top of range consolidation within 2 day ‘pause’, and 3% from YTD highs |
1,421 | 1,420 |
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 |
| Artisan | ( ARTI | Quote | Chart | News | PowerRating) |
20.05 | Mid level consolidation close, on higher volume and continuing technical deterioration |
340 | 393 |
| Taro Pharmaceutical | ( TARO | Quote | Chart | News | PowerRating) |
51.76 | Technical price break of trendline and 20/50EMAs on volume increase |
356 | 338 |
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 |
| Amdocs | ( DOX | Quote | Chart | News | PowerRating) |
22.37 | High level consolidation off test of 20/50 EMAs, finishing in ‘hammer’ daily pattern |
2,276 | 5,272 |
| Quest Diagnostics | ( DGX | Quote | Chart | News | PowerRating) |
61.79 | Top of range close above daily congestion pattern and 200-Day EMA |
930 | 730 |
| Eli Lilly | ( LLY | Quote | Chart | News | PowerRating) |
61.04 | Hammer day on volume, testing prior lows and closing in an intraday consolidation pattern |
3,245 | 8,628 |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| Â | Â | Â | Â | Â | Â |
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) |
34.83 | 12,066 | 15,255 |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) |
28.43 | 59,311 | 57,972 |
| Lowes | ( LOW | Quote | Chart | News | PowerRating) |
55.88 | 4,055 | 5,004 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| 3 M Company | ( MMM | Quote | Chart | News | PowerRating) |
140 | 2,039 | 2,678 |
| Forest Labs | ( FRX | Quote | Chart | News | PowerRating) |
46.31 | 3,167 | 3,541 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler