Friday’s Top Stocks
How quickly they fall. I guess Autumn really does mean ‘the fall.’
Prices
stabilized in the early going after an initial test of technical supports,
to reverse quite nicely for most of the session. Unfortunately, the last half
hour of trade brought in some heavy selling pressure, and in the process left
all
of
our
ETF friends feeling a bit less loved than even yesterday. Prices weren’t as
bad on a percentage basis, but nonetheless all three finished off the session
down between .45% to 1.25% on a second day of heavy institutional distribution…hmmm,
just a guess, but ‘profit-taking’ is no longer the culprit. Volume was slightly
less than yesterday’s ‘offing’, but with the ‘mauled’ showing an advantage
over those sporting horns by a greater than 2:1 margin, the beef is looking
mighty
rare at the moment.
Oversold anyone…Bueller? Ferris definitely took the day off, as those snazzy
growth stock issues that he would surely have a predilection for, had another
day in the bath. At least Ferris was still standing when he took his shower.
Lots of ‘testing’ going on in the past two sessions. Testing of Fibonaccis,
50-Day EMAs, SMAs, prior supports….and investors’ patience in the process.
‘OK, I swear that I’ll never do it again, just make it go back up, PLEASE!!!’
Ahh, seriously though, opportunity awaits those that are still sharpening their
horns. The ETFs are testing, but have not failed within the ‘confirmed rally.’
The most recent selling is distressing, but not disastrous and in my humble
opinion we are seeing some panic selling that will turn into bargain hunting
before you can say ‘lock and load.’ On a more important note though, why swear
off the markets and run for the hills when a bear comes into your recently
pitched camp, when all that you really need to be concerned about is discipined,
consistent daytrading.
Grrr…eat!!! Hopefully you kept to the plan of following the magic MM. Money
Management and not the Market Maker is what will keep a good day from going
bad. The setups out of classic reversal patterns were there in the morning,
and the profits to show for our efforts. With our disciplined, consistent approach
to taking the trade and then scaling out while the getting is good, our dollar
looks stronger than ever, and our yen for daytrading never out of style, even
when a bull looks more like a lemming in pinstripes.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
23.42 | up .44 | CVR 3,6 Buy | 14% above | NA |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
30.65 | up 1.29 | none | 1.5% above | NA |
Hottest Sectors : Retail
(
RTH |
Quote |
Chart |
News |
PowerRating) and Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Gold/Silver (XAU) and Disc Drive (DDX)
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 |
| Urban Outfitters | ( URBN | Quote | Chart | News | PowerRating) |
26.25 | 52-Week high w/ a mid level consolidation on heavy volume | 550 | 1,137 |
| Research In Motion | ( RIMM | Quote | Chart | News | PowerRating) |
35.72 | Top of range near 52-week highs on above-average volume | 2,311 | 3,210 |
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 |
| Engineered Support Systems | ( EASI | Quote | Chart | News | PowerRating) |
59.75 | Bottom of range consolidation on volume increase, triggering out of daily 123 short pattern w/ divergent stochastics |
195 | 360 |
| Teva Pharmaceutical | ( TEVA | Quote | Chart | News | PowerRating) |
55.95 | Volume breakdown of 50-Day EMA and price supports, closing lows of day |
2,187 | 3,336 |
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 |
| Northrop Grumman | ( NOC | Quote | Chart | News | PowerRating) |
84.92 | Hammer close on volume, daily test of pivot lows | 1,039 | 2,962 |
| CheckFree | ( CKFR | Quote | Chart | News | PowerRating) |
19.81 | Double bottom set up closing basis on 30min and daily, with divergent stochastics |
1,560 | 1,811 |
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 |
| Staples | ( SPLS | Quote | Chart | News | PowerRating) |
25.27 | 5,134 | 8,134 |
| QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
48.11 | 4,880 | 4,098 |
| Adobe | ( ADBE | Quote | Chart | News | PowerRating) |
41.27 | 3,108 | 4,827 |
| Amazon | ( AMZN | Quote | Chart | News | PowerRating) |
50.05 | 8,841 | 10,885 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Bank One | ( ONE | Quote | Chart | News | PowerRating) |
37.90 | 3,335 | 3,421 |
| Costco | ( COST | Quote | Chart | News | PowerRating) |
31.80 | 5,923 | 3,515 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler