Here Are Tuesday’s Top Stocks
While The UN Security Council and North Korea “test” the United
States’ patience, the ETFs did their own version of “testing”
investors, as well as technical supports in Monday’s session. It
was another day of light volume, but convincing bearish breadth indications as
far as up volume vs. down volume, and declining vs. advancing issues were
apparent in today’s trade.
The few investors who did participate were decidedly
anxious to find any bids below, selling into weakness that began with a gap
lower in the ETFs. When bids were still reluctant to appear at lower levels, the
bears sensing a bloodied, defenseless bull, really went to work on our beloved
friend, dragging him deeper into the bear’s den, establishing a solid trend day
lower.
It’s looking like the bear is breaking
the down the fence (supports) that have helped keep the bull captive, but
alive…barely. Today’s action has the DIAs closing at Friday’s, and YTD lows
(thru February supports), the SPYs testing their equivalent levels at February
supports, while the QQQs try to make a case for containing the bull a bit
longer, as their supports are still standing, but definitely within clawing
distance.
With TRIN levels reaching extremes,
and volatility picking up as measured by the
(
$VIX.X |
Quote |
Chart |
News |
PowerRating), position traders
are closing in on some key decision points. Reversals off of key retracements
coupled with sentiment measures should provided some good opportunity. For
daytraders this is an especially exciting time because this means……….that
we can continue to focus on the best High and Low RS issues (gotcha)!!
We continue to trade our setups
according to the market conditions of the day, without losing any sleep over
what test tomorrow brings. By doing our homework at night, and coming in
prepared each day, we continue to be ready for any test that the market puts in
front of us the next trading session.
Hottest Sectors (HOLDRs): Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
and Biotechs
(
BBH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors (HOLDRs): Telecom
(
TTH |
Quote |
Chart |
News |
PowerRating) and Regional Banks
(
RKH |
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 |
| eResearch Technology | ( ERES | Quote | Chart | News | PowerRating) | 96 | 23.37 | 323K | 303K |
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 |
| Lockheed Martin | ( LMT | Quote | Chart | News | PowerRating) | 28 | 42.32 | 2,975M | 4,094M |
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.
None Today.
Stocks in Slim
Jims
High RS Slim Jims.
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.
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) | 17 | 19.35 | 9,628M | 10,764M |
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 |
| Intuit | ( INTU | Quote | Chart | News | PowerRating) | 68 | 46.72 | 1,2,3 into SJ w/13,50,200 DEMAs as support | 3,403M | 2,207M |
class=890430920-15102001> Electronic Arts | class=890430920-15102001> ( ERTS | Quote | Chart | News | PowerRating) | class=890430920-15102001> 47 | class=890430920-15102001> 53.43 | class=890430920-15102001> SJ w/ 50-DEMA support | class=890430920-15102001> 4,328M | class=890430920-15102001> 1,700M |
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 |
EchoStar | ( DISH | Quote | Chart | News | PowerRating) | 95 | 28.77 | 3,919M | 3,125M |
eBay | ( EBAY | Quote | Chart | News | PowerRating) | 88 | 79.48 | 5,853M | 4,063M |
Amazon | ( AMZN | Quote | Chart | News | PowerRating) | 71 | 22.81 | 7,284M | 4,415M |
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 |
American International Group | ( AIG | Quote | Chart | News | PowerRating) | 30 | 45.33 | 7,575M | 6,752M |
Microsoft | ( MSFT | Quote | Chart | News | PowerRating) | 35 | 22.95 | 71,273M | 48,721M |
Biogen | ( BGEN | Quote | Chart | News | PowerRating) | 22 | 32.87 | 3,751M | 4,140M |
Bed Bath & Beyond | ( BBBY | Quote | Chart | News | PowerRating) | 43 | 30.28 | 3,053M | 3,882M |
Best of luck with your trading. Please use
protective stops on 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.