Friday’s Top Stocks
It was simple economics, my friends. No, I’m not referring to today’s triple play of economic reports,
but rather supply versus demand. In Thursday’s session, supply was clearly abundant, and heavy as well, as many of our recent flavors of the day were sent into profit-taking mode. A downgrade of our friends over at CNBC’s parent company General Electric
(
GE |
Quote |
Chart |
News |
PowerRating), didn’t help matters. Neither did the fact that nobody seemed to be ‘listening’ as Lehman Bros.
(
LEH |
Quote |
Chart |
News |
PowerRating) talked about better-than-expected earnings. ‘No respect I tell ya’…maybe they should have kept the three-piece suits and the name E.F.
Hutton.
And such went the day, as our ETF friends, the Spyders
(
SPY |
Quote |
Chart |
News |
PowerRating), NASDAQ100
(
QQQ |
Quote |
Chart |
News |
PowerRating), and the Diamonds
(
DIA |
Quote |
Chart |
News |
PowerRating) spent the day trending lower into the red. Closing statistics for the session have the index proxies down between 1.25% and 1.65% on stronger, above-average downside volume, or profit-taking. Market breadth was also in favor of those wanting out, as decliners led advancers by roughly 2:1. As Charles Schwab would say, ‘Relax…the markets go up, and the markets go down.’ A pullback, profit-taking, a shellacking, whatever floats your boat, in my humble opinion. As long as you remember to stick to the thing that really matters, namely daytrading stocks, I don’t really care what you call today’s action within our ‘confirmed rally.’
Bulls, bears, they all make money, especially if they daytrade with their list of High and Low RS issues. It’s the pigs that get slaughtered. With daytrading that means being disciplined enough to wait for those classic continuation and reversal patterns that set up each and every day, and just as importantly, knowing when to heed those magical words from Kenny Rogers’ song,’ The Gambler.’
So, my question to you is this: “Do you continue to hold ’em, know when to fold
’em, or just enjoy walking away from the daytrading table each night with chips in your pocket?”
I’d love to hear your response.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
22 |
up .41 | CVR 1 Sell | 2% below | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
33.86 | up .71 | None | 2% below | Not At Extreme |
Hottest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
and Gold & Silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Broker / Dealers
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) and
Biotechs
(
BBH |
Quote |
Chart |
News |
PowerRating)
Friday’s HELVETICA>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 | Today’s Volume |
| Microchip Technology | ( MCHP | Quote | Chart | News | PowerRating) |
23.41 | 3-Month closing high, upper 50% of range on substantial volume |
4,503m | 8,696m |
| Panera Bread | ( PNRA | Quote | Chart | News | PowerRating) |
40.17 | 52-week closing high with volume |
598k | 1,105m |
| Boston Communications |
( BCGI | Quote | Chart | News | PowerRating) |
17.91 | Top of range close on volume follow thru, above daily pivot resistance |
991k | 2,232m |
| j2 Global | ( JCOM | Quote | Chart | News | PowerRating) |
38.12 | 52-Week high w/ upper range close, out of potential cup & handle daily chart pattern on accompanying volume surge |
819k | 3,463m |
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 | Today’s Volume |
| Stryker | ( SYK | Quote | Chart | News | PowerRating) |
69.50 | Bottom of range close, follow thru action below daily technical pivots on volume |
937k | 1,067m |
| Artisan Components | ( ARTI | Quote | Chart | News | PowerRating) |
24.56 | Failed breakout of 52-week high on volume, closing bottom of range |
591k | 1,114m |
| Universal Health | ( UHS | Quote | Chart | News | PowerRating) |
41.28 | Low RS stock closing inside bearish day pattern below technical resistance on volume |
779k | 885k |
| Sina Corp. | ( SINA | Quote | Chart | News | PowerRating) |
15.94 | Technical breakdown on volume to close at bottom of range |
3,721m | 6,431m |
class=890430920-15102001>
class=890430920-15102001>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.
class=890430920-15102001>Long Reversals class=890430920-15102001>Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
| Patterson | ( PTEN | Quote | Chart | News | PowerRating) |
33.06 | Volume on bullish reversal bar following doji bottom |
1,323m | 1,904m |
| Neoware | ( NWRE | Quote | Chart | News | PowerRating) |
15.21 | Double doji type action on daily chart, off price supports |
457k | 412k |
class=890430920-15102001>
Short
Reversals
Closing Basis.
None Today.
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 | Today’s Volume |
| L-3 Communications | ( LLL | Quote | Chart | News | PowerRating) |
46.22 | 1,125m | 1,344m |
| Newmont Mining | ( NEM | Quote | Chart | News | PowerRating) |
33.89 | 4,302m | 6,747m |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
36.92 | 14,864m | 30,769m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Lehman | ( LEH | Quote | Chart | News | PowerRating) |
71.02 | 2,453m | 6,589m |
| Amgen | ( AMGN | Quote | Chart | News | PowerRating) |
63.82 | 10,924m | 14,598m |
| General Electric | ( GE | Quote | Chart | News | PowerRating) |
29.86 | 18,500m | 34,281m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.