Friday’s Top Stocks
Something triggered the upside bias today–personally, I’m not sure if it was
the 1935 trigger in the Nasdaq Composite mentioned in yesterday’s column, but
it sure wasn’t a bad starting spot from which to play the market in today’s
game. Twenty minutes into today’s session, resistance was greeted with buyside
interest that never really gave shorts a chance to cover, or recover for that
matter. All said and done, our market proxies finished up between .95% to 1.80%
on a combined ratio of over 2.5:1 for advancing issues over decliners. Volume
was higher on both the S&P cash and the Naz, but once again ran at a below-average
clip on the latter. Oh well, from chump to champ in price, I’m sure some investors
and traders are saying ‘Yahoo’ nonetheless, in the market’s continued ‘confirmed
rally.’
Some might be, but not this ‘cautious bull.’ I personally don’t see the rush
to get in on a position basis. With the divergent action that we’ve seen in
the normally leading Nasdaq, and the associated growth stocks that normally
fuel the uptrending markets–there still looks to be time (yes, even after today’s
action). Look at some of the weekly charts of stocks that have led this market
higher, and most are still entrenched within high-level bases (i.e., SOHU, HILL,
MRVL, CGNX, SSYS…to name a few). Then take a look at what has pushed the most
recent market action higher–and in general, most of those names are extended
from their bases and their respective moving averages. Maybe toss in all the
recent IPO fervor turned feverish in today’s trade, volatility levels that continue
to raise the flag of caution, and the performance of cyclical issues that are
turning me just a bit cynical in my own cycle.
Of course this is all within a ‘confirmed rally’ that has been in place for
nine months. Who knows what the next nine months will bring, or next week for
that matter. Just in case the market ends up turning into something else altogether,
or if it just keeps going ‘to the moon Alice’, with or without my seal of approval,
I’ll continue to preach the one thing that still makes ‘cents’, namely 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) |
16.25 | up .90 | cvr 1,6 sell | 1% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
24.33 | down .73 | cvn 6 sell | 9% below | not at extreme |
Hottest Sectors : Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating) and Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors :Â Gold/Silver (XAU) and Biotech
(
BBH |
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 |
| Gen-Probe | ( GPRO | Quote | Chart | News | PowerRating) |
32.55 | 30-Minute extended cup and handle on increased, above-average volume |
1,050 | 1,011 |
| Intelligroup | ( ITIG | Quote | Chart | News | PowerRating) |
5.47 | Engulfing bullish bar on increased, above-average trade within weekly high level base |
434 | 617 |
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 |
| Hyperion Solutions | ( HYSL | Quote | Chart | News | PowerRating) |
28.85 | Above average increased volume on Low RS issue, recently broken daily pattern supports |
696 | 817 |
| Finish Line | ( FINL | Quote | Chart | News | PowerRating) |
28.64 | Continuation bar below key MAs, finishing lows of session on increased, above average trade |
370 | 611 |
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 |
| Flextronics | ( FLEX | Quote | Chart | News | PowerRating) |
14.78 | Wide range bar on increased, above-average trade out of a 123 bottom within weekly high level base |
8,788 | 10,585 |
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 |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) |
60 | 8,938 | 11,609 |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
51.56 | 9,418 | 15,566 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Morgan Stanley | ( MWD | Quote | Chart | News | PowerRating) |
56.27 | 4,395 | 8,101 |
| Marvell Technology | ( MRVL | Quote | Chart | News | PowerRating) |
36.87 | 3,161 | 2,490 |
| Electronic Arts | ( ERTS | Quote | Chart | News | PowerRating) |
44.87 | 3,348 | 4,616 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler