Friday’s Top Stocks
In ‘light’ of the fact that there was very little to make light of in today’s trade, and because many, many folks’ lights are now off in sections of the East Coast and
Midwest, due to some kind of power grid failure, we’ll keep it nice and light. Today’s lethargic, narrow range price action was a continuation of our nine week trading range in our ETF friends. The market proxies all ended up slightly on the session, between a fractional increase of .07% to a ‘hefty’ .27%. Advancers beat out declining issues by approximately 1.5:1, but with anemic volume prevalent once again, and my TV tuned into something more pressing, I hope you don’t mind if all that I have to say is, ‘stay tuned for tomorrow’s show.’
Our comfortable home on the range found even more cozy digs into today’s trade. It was, if you could stay awake throughout today’s session, a sight to behold. If I had one of those little IM emoticons available, I’d be putting up the little guy that’s catching some Zzz’s. The technical situation as far as price has not changed one iota, but I will say one thing in favor of the bull camp. The declining volume statistics, and coicidentally fewer signs of institutional distribution, as well as a failure to break our daily range lows are providing the basis for some ‘new’ stocks to work their way through some very good looking weekly consolidations. I never thought I’d see the day, or hear myself say it, but the stage is looking better than it has in more than three weeks, for a possible resumption of trend. But, as Dave Landry likes to say, ‘No Tickee, No Tradee.’ And of course, regardless of bull or bear, my favorite thing to say is, ‘thank goodness for consistent, disciplined daytrading.’
Let’s hope that everyone out there affected by the power outage is OK, but remember that when it comes to your daytrading, don’t leave that to ‘hope.’ Take control of the situation!!! That is, if you can still turn on the ol’ Commodore 64. Trade only those High and Low RS issues that are triggering out of classic continuation and reversal patterns. After ‘having to’ walk home today, maybe tomorrow you can find yourself walking instead straight to the bank after tomorrow’s game, and hopefully a resumption of some splendid trade.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
20.51 | down .11 | none | 6% below | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
29.27 | down 1.00 | none | 9% below | Not At Extreme |
Hottest Sectors :Â Networking (NWX) and
Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors :Â Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating) and
Telecomm
(
TTH |
Quote |
Chart |
News |
PowerRating)Â
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 |
| Magma Design | ( LAVA | Quote | Chart | News | PowerRating) |
22.10 | Top of range consolidation, near 52-week highs | 858k | 839k |
| Constellation Brands | ( STZ | Quote | Chart | News | PowerRating) |
28.55 | Top of range close, to break daily downtrend and EMA resistance on wide range volume bar |
926k | 950k |
| Accenture | ( ACN | Quote | Chart | News | PowerRating) |
20.38 | Engulfing bullish bar on volume, near consolidation b/o levels and 52-week highs |
2,166m | 6,770m |
| Priceline.com | ( PCLN | Quote | Chart | News | PowerRating) |
34.46 | End of day volume surge to finish at top of range, approaching 52-week high |
900k | 880k |
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 |
| MedImmune | ( MEDI | Quote | Chart | News | PowerRating) |
35.63 | Above average volume on price break of daily supports |
3,995m | 3,339m |
| Netscreen | ( NSCN | Quote | Chart | News | PowerRating) |
21.59 | Wide range reversal bar lower, thru 20 and 50-Day EMAs on volume |
2,045m | 4,080m |
| Sohu | ( SOHU | Quote | Chart | News | PowerRating) |
30.45 | Bottom of range consolidation, after 50-Day EMA test |
4,210m | 3,455m |
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 |
| 20-Year iShares | ( TLT | Quote | Chart | News | PowerRating) |
82.10 | Potential 123 reversal long off test of historic lows, to finish in hammer setup |
1,100m | 1,546m |
| Nextel | ( NXTL | Quote | Chart | News | PowerRating) |
17.51 | 123 daily setting up, with potential 3 point pivot, closing at the 50-Day EMA |
17,800m | 26,600m |
class=890430920-15102001>
Short
Reversals
Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
class=890430920-15102001>
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 |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
38.38 | 11,223m | 11,922m |
| United Technologies | ( UTX | Quote | Chart | News | PowerRating) |
76 | 2,000m | 2,671m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Eli Lilly | ( LLY | Quote | Chart | News | PowerRating) |
61.40 | 2,300m | 2,821m |
| Wal-Mart | ( WMT | Quote | Chart | News | PowerRating) |
57.93 | 7,500m | 6,344m |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) |
25.63 | 45,000m | 36,978m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.
Chris Tyler