Friday’s Top Stocks
Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating)
(
DNA |
Quote |
Chart |
News |
PowerRating)
both came out last night with
their numbers. It might have sounded like they beat ‘the Street’, but the only
beating was for the folks on Main Street, as the boys on Wall Street thought
the news was strong enough for profit-taking purposes only. Definitely, no
‘yahoos’ today, as investors decided to make it a session of across-the-board
profit-taking in all of our ETF friends. The three amigos all finished down
on the session, between 1.3% to 1.8% on average volume, with market breadth
figures that voted in favor of lightening up one’s position as decliners jumped
on top of advancing issues by approximately 2.3:1.
So what did you expect, that the seventh day of our rally was going to be
the right time to take profits, or were you still waiting for E.F. Hutton?
It’s still a ‘confirmed rally’, which means net-net it pays to play from the
long-side,
but it also
means that
the
market
will at some points, along the ride up, be prone to bouts of selling pressure.
Unbridled greed quickly turned to fear, real profit-taking, short sellers…these
are all components that make up pullbacks in the market. Hopefully, you’ve
paid attention to the bells that some of our bovine friends wear.
When the
music in the air started to sound less robust, as it echoed through the
canyons of Wall Street, you were there to toss out some ‘stock’ to the ‘moooving
herd’, while they were still happily chomping at the bit. Today’s lows put
us at the first test for the bulls. The 50% Fibonacci retracement level
held in
the Spyders, but mind you, this is the first line of support.
In order to feed properly, sometimes a bull needs to keep his head down for
a while before looking back up. Until then, we can bide our time like we usually
do, with consistent, disciplined daytrading tactics, day in and day out.
By staying prepared each and every day we can feel like anything but a ‘yahoo.’
With our list of High and Low RS issues we go in each day waiting for the setups
to appear, as ‘yahoos’ unload, or rush to buy stock from us, right as the issue
is completing a classic continuation and reversal pattern. The game is played
each and every day, but it’s up to you to decide before it starts, what team
you want to play for, the bulls, bears, or the daytrading elite.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
( $VIX.X | Quote | Chart | News | PowerRating) |
21.50 | up .50 | none | 0% below | Not At Extreme |
( $VXN.X | Quote | Chart | News | PowerRating) |
33.66 | up .44 | none | 5% above | Not At Extreme |
Hottest Sectors:
Gold & Silver
Weakest Sectors: Internet
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 | Today’s Volume |
| Sierra Wireless | ( SWIR | Quote | Chart | News | PowerRating) |
7.79 | 52-week closing high follow-thru day on range b/o with confirming volume |
366k | 1,469m |
| Gtech Holdings | ( GTK | Quote | Chart | News | PowerRating) |
39.40 | Top of range close on volume, daily chart continuation bar higher |
619k | 1,282m |
| Merge Technologies | ( MRGE | Quote | Chart | News | PowerRating) |
15.13 | Volume surge on 1-Month daily range b/o to close in top of range consolidation |
173k | 419k |
| Geron | ( GERN | Quote | Chart | News | PowerRating) |
9.30 | Top of range close on volume near 52-week highs | 1,654m | 3,384m |
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 |
| Biovail | ( BVF | Quote | Chart | News | PowerRating) |
44.01 | Bottom of range below daily supports and 50-Day EMA on volume |
2,278m | 2,830m |
| Patterson | ( PTEN | Quote | Chart | News | PowerRating) |
30 | Bottom of range consolidation in Low RS issue with confirming volume |
1,559m | 2,428m |
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 | Today’s Volume |
| Cree | ( CREE | Quote | Chart | News | PowerRating) |
16.47 | Tight consolidation off lows on daily chart test of supports | 3,042m | 8,335m |
| General Electric | ( GE | Quote | Chart | News | PowerRating) |
28.19 | 1,2,3 Reversal set up on daily chart, off 200-Day EMA | 19,259m | 21,137m |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
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 |
| Lowes | ( LOW | Quote | Chart | News | PowerRating) |
45.21 | 5,235m | 5,248m |
| MedImmune | ( MEDI | Quote | Chart | News | PowerRating) |
38.99 | 4,270m | 12,154m |
| Applied Materials | ( AMAT | Quote | Chart | News | PowerRating) |
17.44 | 29,662m | 19,232m |
Institutional Laggards
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Lehman | ( LEH | Quote | Chart | News | PowerRating) |
66.94 | 2,885m | 2,127m |
| Bed Bath & Beyond | ( BBBY | Quote | Chart | News | PowerRating) |
39.10 | 3,523m | 2,613m |
| Johnson & Johnson | ( JNJ | Quote | Chart | News | PowerRating) |
51.25 | 8,835m | 7,539m |
Best of luck to everyone. Please use protective stops on all trades.