Friday’s Top Stocks
Who knew that the market was going to be donning the bovine hide and horns
today??? Well, for reversal traders, it was most certainly a high-probability
bet, and I have to say that it was nice to see the market gods once more deliver
the goods via the charts and not from the lips of some announcer or analyst
on the ol’ ‘boob tube.’ Off yesterday’s technical reversals, our ETF friends
were able to put in gains between .60% to 2% on the session. It wasn’t picture
perfect, as volume did decrease, but trade statistics were able to claim the
ol’ 50-day average benchmark. So maybe it ain’t a gigantic ‘Yahoo’, but what
the ‘hay’–‘mooving’ on up within the market’s ‘confirmed rally’ looked pretty
good from these here parts.
It was nice to see the semiconductors (SMH) as one of the leading sectors in
today’s trade after establishing its technical low–especially so because the
high-probability trade worked–without being worked, if you know what I mean.
They don’t always behave that well, but having an edge doesn’t mean having a
winner on every trade, and when they do work out, the key is maintaining the
trade in the plus column through proper money management.
Personally, I took half of my semiconductor bet off the table, locking in a
‘free call’ position. Maybe they ultimately go out worthless–dunno, but I do
know that by following the tea leaves and keeping it real, it don’t get any
better than that. Actually it does, ’cause each and every day we can continue
to go in and trade our brand of consistent, disciplined daytrading, and leave
the high-probability stuff at the office–and during the market’s normally scheduled
business hours
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO[CBOT:$VXO] | 15.95 | down 1.38 | none | 4% below | not at extreme |
| VXN[CBOT:$VXN] | 26.64 | down 1.20 | none | 1% below | not at extreme |
Hottest Sectors : Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating) and Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors :Â NA
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 |
| Navigant Consulting | ( NCI | Quote | Chart | News | PowerRating) |
17.50 | high of day close within 30-min chart cup and handle pattern | 353 | 185 |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) |
57.40 | Increased volume on daily right side of base b/o, closing top of intraday range |
9,077 | 8,870 |
| Genentech | ( DNA | Quote | Chart | News | PowerRating) |
87.15 | Increased volume, top of range close within 1% of daily handle b/o levels |
2,553 | 1,902 |
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 |
| AT & T | ( T | Quote | Chart | News | PowerRating) |
19.62 | Low of day closing price thru MA supports on bearish engulfing bar with strong volume |
5,671 | 6,077 |
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 |
| Lexar Media | ( LEXR | Quote | Chart | News | PowerRating) |
16.12 | Top of range consolidation on increased, above-average trade out of technical zone |
3,439 | 10,771 |
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 |
| Xilinx | ( XLNX | Quote | Chart | News | PowerRating) |
36.70 | 7,459 | 7,405 |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
50.10 | 9,676 | 11,107 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Procter Gamble | ( PG | Quote | Chart | News | PowerRating) |
96 | 2,940 | 3,869 |
| Target | ( TGT | Quote | Chart | News | PowerRating) |
39.01 | 3,714 | 2,774 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler