Here Are Friday’s Top Stocks
“Pinocchio, where are
you?” “I’m way up here, papa”… I thought this little conversation from
another favorite fairytale was very appropriate. The
way investors have bid up prices during the past session and a half is
reminiscent of spoiled school children “up to” no good. Be careful,
it’s only a short matter of time until that nose grows into something very
unsightly. My guess is a potential growth spurt will be triggered by the
requisite upgrades, that will surely appear “out of the woodwork,”
after our already incredible percentage run up in the ETFs from yesterday’s
lows. Make no doubt about it though, all kidding aside, volume was some of the
heaviest of the year, and impressive, as the markets gapped higher, and after a
slight intra-morning pullback, trended higher for the rest of the session to
establish percentage gains between 3% to 5%. This was more than your Aunt Cletus
covering her shorts.
Who was investor’s best friend today,
the CIA or the DIA? My vote goes to the DIA because as you know, we didn’t need
rumors to put on some bullish call spreads in the Diamonds yesterday afternoon.
All we needed was the TM technical setup that presented itself, along with a
good dose of pessimism prevalent at session lows. We would like to take a moment
and say thanks for the “secret surrender talks” between the CIA and
top Iraqi military officials. It seems our investors are even more like school
children…. as they’re always up for a good story.
As mentioned, today’s action saw the
ducks quacking on some the year’s strongest volume, propelling the ETFs right
back into heavy resistance zones. While Wall Street is busy preparing to put on
its “best face” for Joe Public, I am, from a position stance turning
very neutral in light of the evidence presented above. The past two days have
undone about a week and a half’s worth of work to the downside. Not to say it
wasn’t overdone. It definitely was, and if you’ve been reading this column (or
my options report) you know where I’ve stood, but now we have to focus on high-probability setups from the short side.Â
The VIX has dropped well back inside its
prior trading range on all the feel good, warm and fuzzy market talk and price
action. All that I can say to this is, “Whisper more sweet nothings into my ear,
Saddam,” while I continue to find the best longs from our lists of High RS
stocks, and stay just as prepared to put on the shorts from our Low RS lists,
should this turn out to be nothing more than a fairy tale.
Hottest Sectors : Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
and Software
(
SWH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
and Utilities
(
UTH |
Quote |
Chart |
News |
PowerRating)
Friday’s HELVETICA>stocks to watch:
High
RS issues
closing in Top of Range.
Stocks are scanned from 3 Month RS of 80 or higher
and TM’s Proprietary and Technology 10 Momentum lists on the Indicators page.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
EchoStar Communications | ( DISH | Quote | Chart | News | PowerRating) | 95 | 29.41 | 4,069M | 3,756M |
Guidant | ( GDT | Quote | Chart | News | PowerRating) | 76 | 34.21 | 2,857M | 2,877M |
Weak RS issues closing in
Bottom of Range.
Stocks
are scanned from 3 Month RS of 35 or lower and TM’s Implosion and Technology
Implosion Lists on the Indicators page.
class=890430920-15102001>
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Sears | ( S | Quote | Chart | News | PowerRating) | 14 | 18.62 | 4,977M | 5,311M |
High RS issues with Volume
Surge in last hour.
Stocks are scanned from 3 Month
RS of 80 or higher and TM’s Proprietary and Technology 10 Momentum lists on the
Indicators page.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Mylan Labs | ( MYL | Quote | Chart | News | PowerRating) | 97 | 27.50 | 1,979M | 1,840M |
| OmniVision | ( OVTI | Quote | Chart | News | PowerRating) | 89 | 21.35 | 1,406M | 3,765M |
Weak RS issues with
Volume Surge in last hour.
Stocks are scanned
from 3 Month RS of 35 or lower and TM’s Implosion and Technology Implosion Lists
on the Indicators page.
class=890430920-15102001>
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
General Dynamics | ( GD | Quote | Chart | News | PowerRating) | 9 | 52.58 | 2,227M | 2,285M |
Stocks in Slim
Jims
High RS Slim Jims.
class=890430920-15102001>Stocks are
scanned from 3 Month RS of 80 or higher and TM’s Proprietary and Technology 10
Momentum lists on the Indicators page.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Silicon Laboratories | ( SLAB | Quote | Chart | News | PowerRating) | 89 | 28.40 | 1,113M | 1,413M |
| eResearch | ( ERES | Quote | Chart | News | PowerRating) | 97 | 24.74 | 346K | 380K |
Weak RS
Slim Jimsclass=890430920-15102001>.
class=890430920-15102001>Stocks
are scanned from 3 Month RS of 35 or lower and TM’s Implosion and Technology
Implosion Lists on the Indicators page.
class=890430920-15102001>None Today.
class=890430920-15102001>
High RS
Reversal Patterns.
Stocks with 3 Month RS of 80 and / or
Institutional Favorites that are setting up on a closing basis as potential long 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 1,2,3s and Slim Jim (SJ) consolidations. Background
supports in the form of Fibonacci levels, EMAs (DEMA=daily ema), and former price supports are
used in the decision making process.
class=890430920-15102001>None Today.
class=890430920-15102001>Low RS
Reversal Patterns.
Stocks with 3 Month RS of 35 and / or
Institutional Favorites that are setting up (within .15 of trigger) on a closing basis as potential
short reversal pattern
candidates. Patterns include 1,2,3s and Slim Jim (S.J.) consolidations. Whenever
possible background evidence of resistance in the form of Fibonacci levels, EMAs, and former price supports are
used in the decision making process.
class=890430920-15102001>None Today.
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, pattern (Slim
Jims), or last hour volume surges, indicative of follow through in the very near term. Due to the
institutional participation, which can provide additional follow through not
always found in less active issues, the 3 Month RS criteria is more subjective, and quite often less stringent in
evaluating an issues near term prospects. Program trading (which affects many of these
issues) can also be viewed as a potential beneficial factor when stocks listed
below are exhibiting price pattern setups on an intraday and / or daily chart
basis.
Institutional
Favorites
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
NVIDIA | ( NVDA | Quote | Chart | News | PowerRating) | 54 | 13.82 | 8,453M | 11,384M |
eBay | ( EBAY | Quote | Chart | News | PowerRating) | 87 | 82.86 | 5,922M | 10,534M |
MedImmune | ( MEDI | Quote | Chart | News | PowerRating) | 87 | 32.39 | 3,884M | 7,120M |
Amazon | ( AMZN | Quote | Chart | News | PowerRating) | 85 | 24.42 | 6,793M | 11,229M |
class=890430920-15102001>Institutional
Laggards.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Biogen | ( BGEN | Quote | Chart | News | PowerRating) | 17 | 32.79 | 3,876M | 3,950M |
| Genentech | ( DNA | Quote | Chart | News | PowerRating) | 46 | 32.58 | 2,177M | 5,245M |
Best of luck with your trading. Please use
protective stops on class=890430920-15102001> all trades.
P.S. I’ve
just released a new trading module on Intraday Breakouts. If
class=890430920-15102001>
you’d like more information, click
here.