Friday’s Top Stocks
‘Yahoo!!!’ — all three
of our friends were back big time in Thursday’s session…fear,
greed, and of course today’s earnings poster child, Yahoo! (YHOO). With
one of our favorite ‘net’ stocks ‘capturing’ investors’ fancy this morning off
a better-than-expected report, and a favorable, ‘latest and greatest’ economic
number thrown in for good measure, the stage was set for our ETF friends to
thrust higher to fresh 52-week highs. ‘Oh baby, Yahoo!!!’ Unfortunately, for
investors who bought in to today’s three-ring circus, the price of admission
is now somewhat reduced, as the curtains close on today’s show. All three index
proxies did manage to end in the green, up between .15% to .60% on heavier volume
and advancers weighing on decliners to the tune of over 1.5:1, but just like
looking in the house of mirrors…I’m afraid to say that things might not look
as they appear.
Buyer beware. The bulls and bears were both able to do it today — make money,
that is. It’s that other group of investors that don’t pay attention to the
magical MM that are probably feeling like they need some Tylenol right about
now. The MM of course is money management. Sure, daytraders love talking about
the ‘axe’ or lead Market Maker (MM), but the ones that continue to walk the
walk and thrive by daytrading day in and day out, pay a whole lot more attention
to the details that really matter. You got it, it’s not the sounds and lights
of that circus called the Level 2, it’s the same ol’ disciplined, consistent
approach that we use each and every day, regardless if it’s feast or famine
in that particular session.
YAHOO again!!! Congrats to those who had the overnight positions in some of
today’s star performers. I’m thinking that you probably had, at the least, a
killer morning coming in. For the daytrading elite out there, you might have
had to work a bit harder during the actual trading day, but for you, it’s there
for keeps. Through our disciplined, consistent approach to trading High and
Low RS issues out of classic continuation and reversal patterns, you just might
have caught an animal like Zebra
(
ZBRA |
Quote |
Chart |
News |
PowerRating) on the way up, and swapped it out for another
of Mother Nature’s favorites, the ‘short’ Spyder
(
SPY |
Quote |
Chart |
News |
PowerRating) trade, as the web
of deceit made itself susceptible to the ‘spyder’s’ bite.
Volatility Readings:
Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
VXO ( $VXO | Quote | Chart | News | PowerRating) |
19.58 | down .57 | none | 8% below | Not At Extreme |
VXN ( $VXN | Quote | Chart | News | PowerRating) |
28.84 | down .32 | none | 6% below | Not At Extreme |
Hottest Sectors : Internet
(
HHH |
Quote |
Chart |
News |
PowerRating) and Retail
(
RTH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Gold/Silver (XAU) and 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 |
Concord Camera | ( LENS | Quote | Chart | News | PowerRating) |
11.85 | High of day close on relative volume increase w/in multi-week consolidation |
421 | 366 |
Zebra | ( ZBRA | Quote | Chart | News | PowerRating) |
56.94 | Top of range consolidation on strong volume b/o of weekly pattern to fresh 52-week highs |
296 | 562 |
Magma Design | ( LAVA | Quote | Chart | News | PowerRating) |
20.64 | Narrow range day finding support above the 20 and 50-Day EMAs |
808 | 682 |
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 |
Zoran Inc. | ( ZRAN | Quote | Chart | News | PowerRating) |
18.39 | Continuation of deteriorating technical condition, bottom of range close on volume |
1,647 | 2,903 |
United Online | ( UNTD | Quote | Chart | News | PowerRating) |
31.14 | ‘inside’ consolidation day near prior lows after technical daily chart b/d, on volume |
1,466 | 5,990 |
Synopsys | ( SNPS | Quote | Chart | News | PowerRating) |
27.10 | Bottom of range consolidation on wide range engulfing bearish bar, below prior technical supports w/ volume increase |
1,006 | 5,175 |
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 |
Staples | ( SPLS | Quote | Chart | News | PowerRating) |
25.48 | 5,206 | 8,472 |
Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
42.75 | 12,816 | 55,321 |
Home Depot | ( HD | Quote | Chart | News | PowerRating) |
35.12 | 9,619 | 10,988 |
Institutional Laggards.
Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
Mercury Interactive | ( MERQ | Quote | Chart | News | PowerRating) |
50 | 3,198 | 3,298 |
Merck | ( MRK | Quote | Chart | News | PowerRating) |
48.99 | 6,357 | 9,908 |
General Electric | ( GE | Quote | Chart | News | PowerRating) |
30.13 | 19,090 | 24,120 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler