Friday’s Top Stocks
Well, the market might not be ‘technically’ closed for business but personally
speaking, when it comes to pre-holiday trade, my general rule-of-thumb is not
waiting til’ the ol’ three-strikes-and-you’re-out routine. The indices have
actually provided ample range today, although you might not know it by looking
at the meager, fractional gains of .10% to .30% as we approach the final 30
minutes of trade. With light, lackluster trade and decent volatility, it’s a
double-edged sword for daytraders. If you get on the right side of the trade,
the rewards are quickly exaggerated. But, if boys left in charge of the shop
see you playing in their ‘box’, you might find that someone else is doing the
carving, and you’re just the turkey waiting to be gobbled up. You know the saying
already–‘bulls, bears, but not….turkeys??’
Wednesday’s action?? Come on folks,
within the market’s ‘confirmed rally’, you have to realize that ‘cautious bull’
is not going to put his bovine quarters on the chopping block. The volatility
levels have dropped a might bit quick during the past couple sessions, but that’s
merely a warning flag, not a reason to get out. With price, volume, and our
favorite leading growth stocks as our guides, at a minimum, it’s an environment
in which to take ‘the breakout.’ It may only lead to an intraday scalp, but
it’s that type of environment right now, and if it leads to something bigger–great!!
However, truth be told (and we did just that), there were better opportunities
late last week or during Monday’s trade–but there’s no use in looking back
at what could have been, especially when you have good ol’ fashioned consistent,
disciplined daytrading to look forward to when we return from the holiday.
Have a wonderful Turkey Day, folks.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
15.95 | down .34 | cvr 1 sell | 14% below | at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
25.87 | down .12 | cvr 1 sell | 7% below | not at extreme |
Hottest Sectors : Gold/Silver (XAU) and Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating) and Retail
(
RTH |
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 |
| American Home Mortgage | ( AHMH | Quote | Chart | News | PowerRating) |
23.14 | Increased, above-avg. volume thrust bar out of a p/b from highs |
338 | 664 |
| NIC Inc | ( EGOV | Quote | Chart | News | PowerRating) |
7.12 | High of day close near 3 week pattern b/o levels on increased, above-avg. trade |
436 | 627 |
| Foundry | ( FDRY | Quote | Chart | News | PowerRating) |
25.70 | High of day close on weekly test of pattern and 52-week highs with increased, above-average trade |
2,894 | 3,249 |
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 |
| McData | ( MCDT | Quote | Chart | News | PowerRating) |
9.83 | Hammer double bottom on strong, above-average trade | 1,103 | 1,927 |
| LeapFrog | ( LF | Quote | Chart | News | PowerRating) |
30.74 | Top of range close, testing range highs on increased, above-average trade |
1,294 | 1,662 |
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 |
| Teva Pharmaceuticals | ( TEVA | Quote | Chart | News | PowerRating) |
59.75 | 2,084 | 4,053 |
| Electronic Arts | ( ERTS | Quote | Chart | News | PowerRating) |
45.38 | 2,190 | 6,244 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
44.55 | 9,811 | 8,530 |
| Amgen | ( AMGN | Quote | Chart | News | PowerRating) |
58.14 | 9,864 | 9,245 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler