Friday’s Top Stocks
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Big Blue (IBM) was acting like ‘Big Red’, SAP Atkiengesell
(SAP) was looking like one…a sap, and nothing was doing over at Nokia
(NOK). It was all about the earnings today as these names and many more had the early market tone wearing a dark blush. The latest round of numbers had investors acting a bit coy with their recently acquired ‘relationships’, i.e., stocks. As the day wore on, it was quite apparent that investors were not going to get up the courage to come forward out of their opening hole and embrace those now in desperate need of a helping hand. I think Homer…Simpson that is, said it best when it comes to summing up today’s action…’Doohh!!’ As such, our ETF friends closed down between .62% and a tad over 3% on adamant selling, as decliners led advancers by roughly 3.5:1, with volume on par (moderate) with yesterday’s trade.
How cute, and typical, as the Diamonds tried to rally the other leading indices today. Unfortunately, ol’ dogs are still ol’ dogs, bottom line. With the way individual issues have been absolutely dismantled in the last two to three sessions, you’d think that the broader market was also in desperate need of a tourniquet, but in this case you’d be wrong. Some bleeding there in the land of the ETFs, but nothing that matches the carnage of some recent high flyers.
Is that good or bad? I’d have to guess more good than bad, because by the time, if it comes, that the market proxies do some serious testing of technical supports and nerves, the bludgeoned will most likely be ready to rise once more, like the phoenix rising from the ashes. Until that time we always have our consistent, disciplined daytrading. It’s our Rock of Gibraltar, while everything else is sinking like a stone.
Yeah, I was holding some ‘hot potatoes’ of my own, and I think they came out burnt in today’s session, but hey, that’s the name of the investment game. But for us daytraders out there, it’s all about coming in with a clean slate and a fresh attitude, ready to take advantage of that day’s opportunities. Today that meant finding classic reversal setups off of strong daily technical supports. We don’t know what tomorrow will hold in store for us ahead of time. But, I do know that the best way to be ready is still, and always, by starting with our nightly list of High and Low RS issues, and then coming in to seize the day, starting the very next morning.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
22.82 | up .53 | none | 5% above | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
35.47 | up 1.48 | CVR 6 Buy | 6% above | Not At Extreme |
Hottest Sectors : Gold/Silver (XAU) and Oil
Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Networking (NWX) and Software
(
SWH |
Quote |
Chart |
News |
PowerRating)
Friday’s HELVETICA>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 | Today’s Volume |
| Sandisk | ( SNDK | Quote | Chart | News | PowerRating) |
54.51 | High volume top of range close at 52-week high on a wide range bar |
4,081m | 12,240m |
| Textron | ( TXT | Quote | Chart | News | PowerRating) |
41.41 | High level, top of range consolidation on 52-week b/o of trading range pattern |
939k | 2,695m |
| PEC Solutions | ( PECS | Quote | Chart | News | PowerRating) |
18.04 | Top of range high volume b/o out of daily pullback from highs |
314k | 1,915m |
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 | Today’s Volume |
| Beazer | ( BZH | Quote | Chart | News | PowerRating) |
79.43 | Bottom of range consolidation close, below daily technical supports |
722k | 677k |
class=890430920-15102001>
class=890430920-15102001>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.
class=890430920-15102001>Long Reversals class=890430920-15102001>Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
| Avocent | ( AVCT | Quote | Chart | News | PowerRating) |
27.05 | Top of range intraday, off high volume technical reversal on daily chart |
722k | 8,741m |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
35.78 | Bottom of range consolidation at daily technical support zone consisting of price pivots, 50 and 200-Day EMA |
13,497m | 15,391m |
class=890430920-15102001>
Short
Reversals
Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
class=890430920-15102001>
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 | Today’s Volume |
| Intel | ( INTC | Quote | Chart | News | PowerRating) |
24.93 | 68,610m | 71,637m |
| PeopleSoft | ( PSFT | Quote | Chart | News | PowerRating) |
17.90 | 13,609m | 11,977m |
| Banc One | ( ONE | Quote | Chart | News | PowerRating) |
39.57 | 4,372m | 5,239m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Lehman | ( LEH | Quote | Chart | News | PowerRating) |
64.04 | 2,865m | 3,778m |
| Intuit | ( INTU | Quote | Chart | News | PowerRating) |
41.08 | 3,640m | 3,787m |
| Fifth Third Bancorp | ( FITB | Quote | Chart | News | PowerRating) |
55.26 | 2,446m | 2,527m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.
Chris Tyler