Friday’s Top Stocks
Funny how oversold markets work themselves out. The first ingredient is the
so called profit-taking process on distribution designated ‘smart money.’
Of
course one need not be reminded that these are the same folks that brought you
the smart money accumulation in January as well. Next, a potpourri of news that
ranges from the good, the bad, and the ugly is thrown into the mix to really
rattle any remaining raging bulls. Then last but not least, an impressive rally
from the oversold condition starts with a solid gap higher which then turns
into a trend day higher–through all kinds of technical resistance levels with
nary an intraday pullback. It’s even more classic though, when this type of
action happens on the heels of the latest earnings release that all the smart
money are supposedly focused on–and the report is anything but an upside surprise.
Today’s poster child that kept investors guessing was Micron Technology (MU),
as investors opted to ignore the company’s report, or at least the stock–but
not the sector, as the semiconductors put in the best performance of the day,
up 4.14%–and the kind of performance not seen since the first week of February.
The Nasdaq was also apparently rattled over the news, as the broader, tech-laden
index finished up a measly (not) 3%, on increased, above-average trade that
can be classified as a Follow-Thru-Day–giving cautious bulls their first reason
to say ‘yahoo’ in quite a while.
More March Madness, but this time pleasantly to the upside. Personally I would
have liked a lower open, or at least a legitimate pullback for daytrading purposes.
I hate trend days and buying off the 8-period EMA on the 5-minute chart. It
just doesn’t offer many of the pattern set ups that I like to look for intraday.
Oh well, I just hope the market does the right thing, by pulling back or consolidating
tomorrow after such a solid performance. Intermediate-Term traders still won’t
have a heck of a lot to be focused on, if there is to be any subsequent follow-thru
in the coming couple days–but a few names that have been left unscathed: GTRC,
ABAX, MIK, RATE, AGP, HOV, KROL and SFNT, from my weekly intermediate report
that I post for TM might be considered should they trigger out of their weekly
bases. I guess we’ll just have to wait and see which of these might turn into
the next Dell or Microsoft, but for the rest of us who don’t have the time or
patience to wait around–just continue to stick with the 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) |
17.76 | down 2.73 | na | 9% below | not at extreme |
VXN ( $VXN | Quote | Chart | News | PowerRating) |
23.56 | down 2.50 | na | 9% below | not at extreme |
Hottest Sectors : Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : NA
Friday’s stocks to watch:
Technical Strength.
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 |
Celgene | ( CELG | Quote | Chart | News | PowerRating) |
46.98 | Top of range consolidation on high RS stock out of daily pullback |
1,634 | 1,286 |
Avid Technology | ( AVID | Quote | Chart | News | PowerRating) |
45.94 | Top of range close thru key price and MA resistance | 663 | 629 |
NVE Corp | ( NVEC | Quote | Chart | News | PowerRating) |
46.69 | 3rd day of consolidation work using MA support |
901 | 1,334 |
Technical Weakness.
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 |
Semiconductor HOLDRs | ( SMH | Quote | Chart | News | PowerRating) |
39.53 | Wide range bar pullback from lows candidate, finishing top of range into daily technical resistance |
13,992 | 24,175 |
New Century Financial | ( NCEN | Quote | Chart | News | PowerRating) |
45.14 | Bottom of range consolidation on increased, above-average trade thru technical supports |
905 | 1,768 |
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 |
Biogen-Idec | ( BIIB | Quote | Chart | News | PowerRating) |
54.64 | 5,363 | 3,541 |
Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
46.94 | 10,024 | 11,854 |
QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
42.84 | 3,813 | 3,679 |
Institutional Laggards.
Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
Halliburton | ( HAL | Quote | Chart | News | PowerRating) |
28.27 | 4,424 | 5,393 |
Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
59.19 | 4,660 | 4,568 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler