Friday’s Top Stocks
With today’s close in
the S&P 500 cash, we are sitting smack dab where we were five weeks ago.
But that’s not all folks, during that same time period this broad market average
has been consolidating in the neighborhood of a 3.5% trading range…whoa!!! But
wait, I’m not done–let’s throw in today’s volume which was the second-lightest
of the year, and you have the makings in one cautious bull’s opinion–of some
very tough trading. The upside to this is that things can probably only get more
interesting and hopefully better at the same time, meaning more consistent with
some momentum attached—and that’s ‘no bull.’
Now that I’ve shocked you with all my doom and gloom (yeah right), the S&P
500 and the Nasdaq Composite were both able to finish up on the session. The
magic was back in Thursday’s trade as a hat trick of sorts for our snazzy Nazzy
index came into being–with this the third day in a row of over-performance
by our tech-heavy friend. Oh yeah, and I almost forgot, but because apparently
so many kind folks dare to care, let’s hear a ‘yahoo’ for this cautious bull.
Today it turns out, amidst all the lethargic and divergent action that has seemingly
become de rigeur for the market–today was a better day for me, according to
the latest traders’ poll.
‘Yahoo!!!’…not. I will admit that on a personal level in my tiny corner of
the market universe, the intraday triggers held their own today–but, seriously
folks, my attitude hasn’t changed one iota from the last couple of sessions.
OK, I lied–actually, it’s probably gearing up for more downside as the third
day off our lows in the Nasdaq has failed to provide any meaningful institutional
support for the move as we have moved right back into resistance territory.
At this point, I see the Naz as more of a potential roller out of this pullback
from lows, and the S&P 500 ultimately doing something south of the 50-day
MAs. You might not agree with my analysis, and that’s what makes a marketplace
ultimately–but, until this cautious bull sees leading growth names firming
up in quality basing patterns, and maybe some good old-fashioned profit-taking
in the S&P 500, the horns remain down while I continue to concentrate on
what really matters most–the bottom line, and getting there with consistent,
disciplined daytrading tactics.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
14.65 | down .34 | na | 7% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
23.13 | down .42 | na | 3% below | not at extreme |
Hottest Sectors : Internet
(
HHH |
Quote |
Chart |
News |
PowerRating) and Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Software
(
SWH |
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 |
| Marvel | ( MVL | Quote | Chart | News | PowerRating) |
32.78 | Top of range close on increased, above-average (IAA) volume within high level weekly base |
857 | 959 |
| Research In Motion | ( RIMM | Quote | Chart | News | PowerRating) |
96.60 | IAA Volume b/o of high level daily consolidation | 5,995 | 6,394 |
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 |
| NA | NA | NA | NA | NA | NA |
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 |
| Genetech | ( DNA | Quote | Chart | News | PowerRating) |
103 | 2,073 | 9,985 |
| PetsMart | ( PETM | Quote | Chart | News | PowerRating) |
26.71 | 1,561 | 3,154 |
| Comverse Tech | ( CMVT | Quote | Chart | News | PowerRating) |
19.47 | 3,047 | 5,029 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Paychex | ( PAYX | Quote | Chart | News | PowerRating) |
31.90 | 2,445 | 4,903 |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) |
26.50 | 62,890 | 66,602 |
| Gilead Sciences | ( GILD | Quote | Chart | News | PowerRating) |
54.59 | 3,523 | 2,857 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler