Friday’s Top Stocks
Now that’s a ‘mooove’ in the right direction. You might not know it, based
on closing figures, but with weakness in the overseas markets and more (surprise!!!)
less-than-perfect numbers coming out of many of our recently loved titans of
commerce, the indices did in fact get to do some healthy, corrective testing
in today’s trade. Names such as KLA-Tencor
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10% as profit-takers decided to give value-players something to possibly consider
for their portfolios.
All said and done though, as mentioned, the ETFs finished well off their respective
session lows, ending the day in mixed fashion, between a small .85% (come on,
it is the Naz) loss to an underwhelming but spirited fractional gain of .08%
for our broad-based friend, the Spyder. Volume on the session reflected some
relief, as investors either cashed out, or put some chips into the pot, on above-average
and increased participation. For those that did decide to sit down and play
in today’s game, the bears were a slight favorite as the advance/decline ratio
came in at a combined .83, but I personally think rooting for ‘da bulls is looking
more attractive.
What was very green and thriving not so long ago, has once again been cut down
and trimmed, or mowed over if you like. Personally speaking, I don’t mind the
action, as I’ve never been much for ‘reaching.’ With today’s trade, the Spyders
got within a fraction of the support zone mentioned yesterday–if you consider
the premarket trade, it was an even closer call. The zone consists of a daily
gap fill, the 50% Fibonacci retracement off the Sept. 30 low, as well as the
50-day EMA.
That means I’m snooping around for some value of my own as we are now in an
area that most would consider at least somewhat technically appropriate for
some ‘looking at what’s in the windows.’ Now, let’s just hope ol’ Mr. Softy
(
MSFT |
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let’s keep to the regularly scheduled program of consistent, disciplined daytrading.
Stick to the plan–some days by definition will prove more difficult than others,
but if you apply the same consistency to your trading each and every day, even
if the KLAC don’t tick tock like precision ‘klock work’, maybe you can still
give it a few minutes of your time, as it might just give you a few ticks of
its own. You’ve got to be ready though, as time and profits will certainly tell
you if you’re pulling the trigger out of the classic patterns at the appropriate
allotted time and place. Remember that just like in baseball, by the time your
perfect pitch is thrown squarely over the plate in front of you, you’ve already
prepared and made the commitment to taking the swing ahead of time.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX | Quote | Chart | News | PowerRating) |
17.68 | up .01 | cvr 1 buy | 1% above | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
26.09 | up .41 | none | 1% above | Not At Extreme |
Hottest Sectors : Homebuilders (HGX) and Pharmaceuticals
(
PPH |
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Weakest Sectors : Semiconductors
(
SMH |
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PowerRating) and Internet
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HHH |
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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 |
| Affymetrix | ( AFFX | Quote | Chart | News | PowerRating) |
23.38 | High volume b/o of daily congestion, closing in top of range pullback |
1,345 | 3,645 |
| Eon Labs | ( ELAB | Quote | Chart | News | PowerRating) |
40.99 | 30-min. Cup and handle on daily chart b/o of trading range | 249 | 265 |
| New Century Financial | ( NCEN | Quote | Chart | News | PowerRating) |
36.05 | High volume b/o of daily cup and handle pattern, closing top of range |
827 | 3,494 |
| Quest Software | ( QSFT | Quote | Chart | News | PowerRating) |
14.71 | B/o of daily trading range on volume to close at top of range and 52-week highs |
1,380 | 3,905 |
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 |
| CDW Corp | ( CDWC | Quote | Chart | News | PowerRating) |
59.01 | Bottom of range close on failure of the 20-Day EMA | 1,261 | 1,365 |
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 |
| Biosite | ( BSTE | Quote | Chart | News | PowerRating) |
28.19 | Hammer reversal off double bottom on volume, closing in narrow range consolidation intraday |
744 | 1,616 |
| Mercury Interactive | ( MERQ | Quote | Chart | News | PowerRating) |
43.77 | Bottom of range consolidation on test of key daily support zone, on very heavy volume |
2,940 | 13,553 |
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 |
| Veritas | ( VRTS | Quote | Chart | News | PowerRating) |
35.57 | 6,580 | 17,389 |
| Eli Lilly | ( LLY | Quote | Chart | News | PowerRating) |
65.10 | 3,526 | 6,945 |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) |
33.24 | 7,646 | 9,381 |
| Paychex | ( PAYX | Quote | Chart | News | PowerRating) |
37.47 | 2,514 | 2,444 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) |
54.28 | 7,688 | 9,821 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler