Friday’s Top Stocks
Â
It’s simply amazing how it comes about. The ETFs all surge higher to critical resistance
levels, only to ‘reverse hard’ on the initial test, and then the rumors seemingly pop up from nowhere…or better yet, from somebody’s trading desk. Today’s show was courtesy of Fleetwood Mac. Both their album ‘Rumours’, and the song, ‘Tell me lies…’ sum up the apparent intraday selloff due in part to an ‘erroneous’ order by a major brokerage firm. Going into the final hour of trade (sorry folks, Ranger Chris has left the park early) the market proxies are up between .10% and .65% on moderate trade and positive market breadth, giving this smoke detector the go ahead to leave the park during normal operating hours.Â
Let me tell you something, Triumph The Insult Dog would definitely be insulted. In an overbought market, smack into key daily resistance levels in our ETF friends, who really needs a rumor to poop on the market? ‘Yes, yes, that’s right folks…it’s quite a show.’ The confirmed rally is in place, but with an overbought condition, and low implied volatility readings, there are definitely reasons in place, not rumors, to make the market act silly. But, just because the market may be acting silly, doesn’t give you the reason to stop making sense. Stick with what got you there in the first place, namely disciplined, consistent daytrading.
I might not be there every day, but doesn’t mean the fun has to stop. If you continue to stick to the High and Low RS issues and watch for the classic reversal and continuation patterns to trigger, you’ll find that it’s just as enjoyable as a walk in the park.
Please note that the following selections and prices are on an intraday basis.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
20.12 | up .89 | none | 1.5% below | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
28.96 | up 2.46 | none | 3% below | Â At Extreme |
Hottest Sectors :Â Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
and Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors :Â Gold/Silver (XAU) and
Pharmaceuticals
(
PPH |
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 |
| JDA Software | ( JDAS | Quote | Chart | News | PowerRating) |
16.89 | Daily and weekly b/o, at top of intraday range on strong volume |
410k | 463k |
| Microchip Technology | ( MCHP | Quote | Chart | News | PowerRating) |
27.55 | Intraday triangle, near 52-week highs and b/o levels |
3,044m | 1,557m |
| Websense | ( WBSN | Quote | Chart | News | PowerRating) |
23.91 | Intraday triangle pattern at high of day, following thru on recent daily b/o |
667k | 390k |
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 |
| Citrix | ( CTXS | Quote | Chart | News | PowerRating) |
18.62 | Daily reversal bar off technical test of 50-day EMA on strong volume |
3,263m | 2,523m |
| Bear Stearns | ( BSC | Quote | Chart | News | PowerRating) |
68.96 | Session lows on technical b/d of 20-day EMA and range supports |
1,429m | 682k |
| Anthem | ( ATH | Quote | Chart | News | PowerRating) |
71.61 | Bottom of range consolidation on Low RS issue, daily chart ‘rollover’ action |
1,155m | 617k |
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 |
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 |
| KLA-Tencor | ( KLAC | Quote | Chart | News | PowerRating) |
55.64 | 8,876m | 7,080m |
| Symantec | ( SYMC | Quote | Chart | News | PowerRating) |
53.18 | 3,575m | 6,145m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Johnson & Johnson | ( JNJ | Quote | Chart | News | PowerRating) |
49.38 | 8,272m | 6,954m |
| Procter Gamble | ( PG | Quote | Chart | News | PowerRating) |
86.82 | 3,309m | 2,516m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.
Chris Tyler