Here Are Tuesday’s Top Stocks
The semiconductor sector hit the proverbial wall today, as investors
“dumped this HOLDR.” The
“smash”
(
SMH |
Quote |
Chart |
News |
PowerRating), quite literally today, led the downside within the
major index proxies and important market sectors, all posting losses in Monday’s
trade. A poorly received ISM report didn’t make up for the capture of ex-Calvin
Klein model Khalid Sheikh Mohammed. After a euphoric opening bid higher, the
ETFs were greeted by anxious sellers as all three notched trend days to the
downside. Closing losses were between one and two percent, on light volume, with
decliners slightly outpacing advancers.
With today’s losses we remain well
entrenched in our daily trading range. The early action had the SPYs, QQQs, and
SMH testing key overhead supports, and failing within the first thirty minutes
of trade. Its called a broken Cup & Handle at this point,….the semis,
which had been leading, filled the prior gap low from January 16, and then
proceeded to reverse course to the downside for the rest of the session.
I mentioned the semis as the leading
sector in Friday’s
report, and one to watch for strength as it looked to be
breaking out at the closing prices. As the writer of the Nightly daytraders
report I was holding the crystal ball for about 30 minutes before the real
time analyst had to interpret what the market was saying on Monday morning. The
investor in me would love the semis, and all the other fallen angels to blast
through resistance levels, and maybe one day they will. In the meanwhile, the
daytrader and analyst in me knows that the best way to always prosper is to stay
prepared to trade from either side, with the best High and Low RS stocks
that the market has to offer for that day’s journey.
Hottest Sectors (HOLDRs): Utilities
(
UTH |
Quote |
Chart |
News |
PowerRating) and Oil
Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors (HOLDRs): Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating) and Software
(
SWH |
Quote |
Chart |
News |
PowerRating)
Tuesday’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 |
| Apache | ( APA | Quote | Chart | News | PowerRating) | 88 | 65.65 | 1,986M | 1,625M |
| Avocent | ( AVCT | Quote | Chart | News | PowerRating) | 81 | 28.52 | 548K | 1,390M |
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.
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 |
| Automatic Data Processing | ( ADP | Quote | Chart | News | PowerRating) | 19 | 32.38 | 2,592M | 1,431M |
| CheeseCake Factory | ( CAKE | Quote | Chart | News | PowerRating) | 28 | 29.34 | 851K | 798K |
class=890430920-15102001>
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.
None Today.
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.
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 |
| Panera Breads | ( PNRA | Quote | Chart | News | PowerRating) | 19 | 26.45 | 887K | 793K |
| General Dynamics | ( GD | Quote | Chart | News | PowerRating) | 13 | 58.65 | 1,924M | 2,086M |
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.
None Today.
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.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | Pattern Type | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| Power Integrations | ( POWI | Quote | Chart | News | PowerRating) | 54 | 20.40 | 1,2,3 w/50-DEMA support | 688K | 474K |
class=890430920-15102001> KB Home | class=890430920-15102001> ( KBH | Quote | Chart | News | PowerRating) | class=890430920-15102001> 70 | class=890430920-15102001> 47.12 | class=890430920-15102001> Desc.triangle breakout w/13-DEMA | class=890430920-15102001> 822K | class=890430920-15102001> 626K |
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.
size=2 Helvetica>Name | class=890430920-15102001>Symbol | class=890430920-15102001>Relative Strength | class=890430920-15102001> size=2 Helvetica>Price | Pattern Type | class=890430920-15102001>Average Volume | class=890430920-15102001>Today’s Volume |
| OmniVision | ( OVTI | Quote | Chart | News | PowerRating) | 93 | 19 | SJ breakdown w/daily & stochastics | 1,302M | 2,288M |
class=890430920-15102001>
OmniVision
is interesting on a closing basis. Although it’s a High RS issue, the 5 minute
chart has the stock breaking down out of a .20 wide Slim Jim w/ confirming
stochastics (8,3,3). The daily technical picture shows what looks to be a
“failed” Cup and Handle pattern. The combined two patterns, with
well defined price risk are the basis for this potential reversal call.
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 |
Halliburton | ( HAL | Quote | Chart | News | PowerRating) | 82 | 20.50 | 4,071M | 4,125M |
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 |
SBC Communications | ( SBC | Quote | Chart | News | PowerRating) | 11 | 20.71 | 9,757M | 7,359M |
Maxim Integrated Circuits | ( MXIM | Quote | Chart | News | PowerRating) | 47 | 32.48 | 7,797M | 8,879M |
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.
class=890430920-15102001>
Chris Tyler