Friday’s Top Stocks
Who me, ‘cautious bull’ worry? Nah, not as long as the market keeps climbing
the proverbial wall of worry like it has been since we tested technical lows
last week. Yes, I know some very important companies such as Dell Computer (DELL)
are reporting (and is weighing on the aftermarket right as I happen to be scribbling
down my thoughts), but personally I don’t mind calling it like I see it, ’cause
last time I checked, shorting hasn’t worked nearly as well, at least in this
little corner of the market.
With today’s inside consolidation day action that left the S&P500 and Nasdaq
Composite down between .43% to .77% on lighter, below-average volume—and the
S&P having just done the unthinkable yesterday by scoring a fresh yearly
high–why fight something that looks an awful lot like a pullback within an
established uptrend? Simple-minded yes, but with stops in place I can stop trying
to make ‘cents’ out of all the daily nonsense, and focus on the bull on my charts,
rather than the ‘bull’ everywhere else.
Oh please don’t let me be wrong tomorrow, where’s my lucky rabbit’s foot and
bullish headgear anyways? Fuhhgett’bout it, if you can’t take the horns popping
you in the behind once in a while when trying to ride the bull, then don’t bother
hopping on in the first place. A minor flesh wound can quickly turn into something
much deeper, as some very beary claws come to greet those not willing to admit
the error of their 100% guaranteed black box system. You know the one, it’s
the thingamagiggy that forgets to use protective stops because it’s so
accurate at predicting future moves. Back on
Planet Earth, last time I checked there were no guarantees in the market, except
what you find on the boob tube–and that disciplined, consistent daytrading
tactics still seem to make the most ‘cents’ each and every day.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
14.90 | up .02 | na | 9% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
23.38 | down .14 | na | 8% below | not at extreme |
Hottest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating) and Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating) and Telecom
(
TTH |
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 |
| Guitar Center | ( GTRC | Quote | Chart | News | PowerRating) |
35.31 | Top of range consolidation above daily congestion in right side of weekly base, on increased, above-average volume (IAA) |
476 | 517 |
| D.R.Horton | ( DHI | Quote | Chart | News | PowerRating) |
30.79 | inside doji bar consolidation above weekly base b/o levels | 1,537 | 1,640 |
| Intelligroup | ( ITIG | Quote | Chart | News | PowerRating) |
9.47 | Top of range consolidation on IAA volume w/in weekly high level base |
530 | 904 |
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 |
| Global Payments | ( GPN | Quote | Chart | News | PowerRating) |
44.90 | Bottom of range consolidation approaching daily pivot lows on above-average volume |
160 | 218 |
| Magna | ( MGA | Quote | Chart | News | PowerRating) |
79.85 | Technical break of MA supports on IAA volume, closing bottom of range consolidation |
212 | 287 |
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 |
| NA | NA | NA | NA | NA | NA |
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 |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) |
69.21 | 7,811 | 5,769 |
| Computer Associates | ( CA | Quote | Chart | News | PowerRating) |
27.32 | 3,331 | 2,460 |
| Halliburton | ( HAL | Quote | Chart | News | PowerRating) |
31.63 | 3,773 | 4,721 |
| JP Morgan | ( JPM | Quote | Chart | News | PowerRating) |
40.36 | 9,093 | 8,119 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Veritas | ( VRTS | Quote | Chart | News | PowerRating) |
32.95 | 6,037 | 4,757 |
| Hewlett Packard | ( HPQ | Quote | Chart | News | PowerRating) |
22.91 | 11,885 | 28,422 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler