Friday’s Top Stocks
Isn’t a daytrader’s prerogative to change his or her mind?? Well, for those
that read the ol’ tea leaves (as some technicians refer to charting), today’s
trading was a classic bottom for the intraday inclined. With our ETF friends
up between .50% and 1%, you might not know it, but intraday a key test for the
Nasdaq Composite, as well as the semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating), had this Cautious
Bull believing that the time was right to step up to the plate once again. What
will tomorrow ultimately bring?? I don’t know, but all I ask for is more of
the same ol’ high-probability intraday daytrading–‘Oh Yahoo!!!’
A key intraday reversal pattern (a double bottom or 123 formation) in the Nasdaq
Composite at a zone comprised of the 20-day EMA, and a 50% Fibonacci retracement
from our November pivot lows was enough for this Cautious Bull to raise his
horns. Actually, the 41.75 intraday bottom off a gap fill and 78% retracement
in the ‘Smash’ was the real clincher, in my humble opinion–and indeed, my money
was where my mouth was in that one. Truth be told, I only took half off, leaving
the balance of the puts on for virtually free. I guess you could say it was
an early gift before Christmas, but definitely in the spirit of giving, as many
of our subscribers can attest too, with their own ringing of the register.
As said, a solid technical low was put in place, and many growth stock issues
that I had mentioned as being ‘transistional shorts’ previously, have in fact–to
put it bluntly–been clobbered in the last two sessions. Personally speaking,
that puts me in the mood to look for reversal longs and also consider breakout
plays heading into tomorrow–but the only thing that I can really know for sure
is that I’ll continue to stick with our daily brand of good ol’ fashioned consistent,
disciplined daytrading.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
16.56 | up .26 | none | 4% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
26.81 | down .53 | cvn 1 buy | 1% below | not at extreme |
Hottest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating) and Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Gold/Silver (XAU) and Broker/Dealer (XBD)
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 |
| Transaction Systems | ( TSAI | Quote | Chart | News | PowerRating) |
20.15 | Engulfing hammer within 8-week high level base, intraday cup and handle |
428 | 305 |
| Lca-vision | ( LCAV | Quote | Chart | News | PowerRating) |
19.60 | High level consolidation at daily chart pattern b/o levels on significant volume |
141 | 2,765 |
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 |
| PMC Sierra | ( PMCS | Quote | Chart | News | PowerRating) |
19.53 | Mid level intraday 123 topping pattern below the 20-Day EMA on heavy, increased volume |
5,812 | 7,053 |
| Leapfrog | ( LF | Quote | Chart | News | PowerRating) |
27.36 | Bottom of range consolidation on above-average volume thru daily price supports |
1,378 | 3,030 |
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 |
| Brightpoint | ( CELL | Quote | Chart | News | PowerRating) |
21.57 | ‘hammer 123’ pattern on daily chart, on above average volume | 809 | 982 |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| Nii Holdings | ( NIHD | Quote | Chart | News | PowerRating) |
77.44 | session long consolidation below prior extended intra supports, out of daily 123 topping pattern |
442 | 558 |
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 |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) |
33.25 | 8,011 | 13,532 |
| MedImmune | ( MEDI | Quote | Chart | News | PowerRating) |
25.40 | 6,452 | 8,979 |
| Target | ( TGT | Quote | Chart | News | PowerRating) |
40.15 | 3,766 | 7,574 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Electronic Arts | ( ERTS | Quote | Chart | News | PowerRating) |
42.03 | 2,673 | 7,771 |
| Merck | ( MRK | Quote | Chart | News | PowerRating) |
43.29 | 9,560 | 10,184 |
| Interactive Corp | ( IACI | Quote | Chart | News | PowerRating) |
29.98 | 8,235 | 17,146 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler