Friday’s Top Stocks
The mild .42% loss after testing recent highs in the S&P 500 is the one
positive in a market dichotomy that now weighs in favor of the maligned Nasdaq
Composite. After a multi-day consolidation, and an anticipated breakout from
this cautious bull–the index did attempt to break out from an opening gap in
Thursday’s session, but that unfortunately was as good as it got. The Nasdaq
Composite put in, to put it mildly, an atrocious-looking engulfing bearish bar
on heavier, increased trade. I guess you can call that a Follow-Thru-Day–although
those bulls that don’t use stops might not be too happy about that particular
market statistic. For the session the Nasdaq was off by 1.47%, clearing the
table of any and all bovine bets in the process….and that’s no bull.
Bottom line, today’s action was less-than-good, it was plain ugly if you look
at the spanking that more than a few growth stocks witnessed today. If you can’t
think of any, try looking at Marvell Technology (MRVL), as this one exemplifies
some nasty action in a stock that had been doing all the right things for many
weeks now. It was stocks like Marvell that had kept this cautious bull looking
for the Nasdaq to eventually follow in the S&P’s footsteps. The severity
of today’s price action underscores a need to pull in the horns. Even though
volume in this particular issue was somewhat lighter than yesterday’s move out
of congestion–and the fact that it is still well above pattern lows and all
of its moving averages on a closing basis–this kind of action at a minimum,
says that there is still time before we’ll be seeing any fresh breakouts in
growth issues.
A few others that were setting up nicely but for whatever reason (besides sellers,
that is) are now looking well entrenched include: eCollege.com (ECLG), eResearch
(ERES), Netsmart Technologies (NTST), and something usually delicious, but far
from rising to the occasion–Panera Breads (PNRA). Hmm, just food for thought
for position traders out there. For everyone else–just keep trying to make
‘cents’ of it all by sticking with 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) |
16.90 | up 1.16 | na | 6% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
24.24 | up .51 | na | 0% | not at extreme |
Hottest Sectors : Pharmaceutical
(
PPH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating) and Software
(
SWH |
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 |
| NovAtel | ( NGPS | Quote | Chart | News | PowerRating) |
18.05 | Top of range consolidation on increased, above-average volume b/o of weekly high level base |
118 | 1,210 |
| American Home Mtg. | ( AHH | Quote | Chart | News | PowerRating) |
25.60 | Above average volume in continuation attempt out of two day consolidation |
335 | 449 |
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 |
| Varian Semiconductor | ( VSEA | Quote | Chart | News | PowerRating) |
42.69 | Engulfing bearish bar on increased, above average volume, breaking technical supports |
779 | 1,137 |
| Dycom | ( DY | Quote | Chart | News | PowerRating) |
22.97 | low of day close on test of consolidation supports in Low RS issue |
349 | 222 |
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 |
| NA | NA | NA | NA | NA | NA |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| NA | NA | NA | NA | NA | NA |
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 |
| NA | NA | NA | NA | NA |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Amazon | ( AMZN | Quote | Chart | News | PowerRating) |
44.65 | 10,135 | 7,442 |
| Staples | ( SPLS | Quote | Chart | News | PowerRating) |
25.45 | 3,189 | 2,826 |
| Citigroup | ( C | Quote | Chart | News | PowerRating) |
49.36 | 11,484 | 13,295 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler