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
           

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