Friday’s Top Stocks
The ‘Drive For Five’ was completed today–as Thursday marked another session
of downright ornery market action. With the fractional gains of .25% to .33%,
the intraday action was anything but tame. For all intents and purposes, today
could be considered ‘inside day’ type action, and with meager volume statistics
to add to the mix–who’s gonna seriously say otherwise? The strongest move of
the session came during the lunchtime lull. If you missed it, you’re forgiven,
considering the preceding morning choppiness—because there were definitely
more constructive ways to bide your time as raging bulls and angry bears continue
to battle over who’s really in charge….nobody, it seems, at least in one dude’s
very humble opinion.
Considering the fact that the Nasdaq Composite has made a very impressive technical
pullback from highs, one would think (or at least I would) that opportunity
would come knocking, but it sure as heck didn’t happen in today’s trade. Technical
Pattern reversals on MA recrosses and testing key technical support zones–sounds
like just the stuff that this cautious bull has been waiting for. Unfortunately
the action has felt more like a poke from one’s own horns. It happens–and most
often, it’s the direct result of the carcasses laying around Wall Street, as
emotions and dreams of Nasdaq 5000 were in the cards, only to disappoint the
masses yet once more.
It’s been a while since the market witnessed such an appetite for equities,
and with it comes all the fresh excesses that continue to be washed away. I
always preach the way of the disciplined, consistent daytrader–sometimes though,
not even the best laid plans work on that time frame, but then again nothing
does. Ultimately, it’s good ol’ fashioned money management on every time frame,
from the one-minute scalp artist to the IBD-style investor that lets us keep
what’s ours and away from the Pied Piper of Wall Street…..as CNBC likes to
say, ‘Profit From It.’
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
17.75 | up .17 | cvr 2 buy | 7% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
26.16 | down .50 | cvn 2, 6 buy | 7% above | not at extreme |
Hottest Sectors : Internet
(
HHH |
Quote |
Chart |
News |
PowerRating) and Retail
(
RTH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)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 |
| Pacific Sunwear | ( PSUN | Quote | Chart | News | PowerRating) |
24.33 | Top of range consolidation on increased, above-average (IAA) volume b/o attempt of weekly high level base |
1,747 | 3,509 |
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 |
| Nam Tai | ( NTE | Quote | Chart | News | PowerRating) |
27.33 | Bottom of range consolidation on IAA volume breaking recent range supports |
1,404 | 1,084 |
| Biogen Idec | ( BIIB | Quote | Chart | News | PowerRating) |
42.18 | Technical breach of 20-Day EMA, closing near daily consolidation supports |
4,317 | 3,642 |
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 |
| Technology Research | ( TRCI | Quote | Chart | News | PowerRating) |
13.84 | Top of range consolidation on engulfing bullish bar w/ IAA volume |
324 | 631 |
| Cognex | ( CGNX | Quote | Chart | News | PowerRating) |
29.50 | Inside daily doji bar after technical test of daily support zone on above-average volume |
275 | 392 |
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) |
67.23 | 7,928 | 6,993 |
| Verisign | ( VRSN | Quote | Chart | News | PowerRating) |
17.79 | 2,975 | 3,521 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Staples | ( SPLS | Quote | Chart | News | PowerRating) |
25.65 | 3,223 | 4,002 |
| Nextel | ( NXTL | Quote | Chart | News | PowerRating) |
25.92 | 12,245 | 7,762 |
Best of luck to everyone. Please use protective stops on all trades.