Here Are Tuesday’s Top Stocks
While the ETFs were all able to finish the day in the plus column, the closing
prices don’t tell the entire story. After
gapping substantially higher on more playing of the “war card,” the major
indices reversed course to close at their worst levels of the session on
stronger volume. Percentage gains across most all industry groups were discarded
by market participants, as the second half of today’s trade left any fans of the
today’s early market action in search of better seats for today’s other big
game — college hoops.
The
markets tested a significant resistance zone in today’s session, and failed.
After trading laterally for the better part of the day, the ETFs finally dropped
precipitously in the final 90 minutes of trade. Volume picked up from rather anemic
intraday levels as the market proxies broke intraday price supports establishing
ugly, red, wide range bars. The volatility indices continue to show what I
consider to a lack of respect for risk. If you’ve been reading this column
you’ll know that while I’m rooting for a quick end to the war overseas, I’m also
not as excited as some of the “Generals” on Wall Street.
Today afforded another opportunity for
position traders to trade a volatile market on the cheap, in my opinion. The DIA
April 85 calls could be had for 1.65 vs. 85.05 stock this morning to establish a
synthetic straddle. For those not familiar with this strategy, Edward Allen
and myself will actually be putting together a weekend piece that will give you
the broad strokes for trading this type of volatility position.
And if position trading doesn’t
work out, the one thing that we know that pays us consistently, is our daytrading. By staying focused on those High and Low RS issues that are setting
up the best in that day’s market environment, we won’t have to guess when
and where our next profitable trade will be. As sure as the sun will rise
tomorrow, there will also be opportunity for the astute daytrader, in each and
every trading day. By the way, if you are a fan of Kansas, good luck, but
remember when it comes to your trading, always rely on stops, because
hoping and clicking your heels is definitely not the way to get home in the game
of trading.
Hottest Sectors : Internet
(
HHH |
Quote |
Chart |
News |
PowerRating) and Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Pharmaceuticals
(
PPH |
Quote |
Chart |
News |
PowerRating)
and Biotechs
(
BBH |
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 |
Netease.com | ( NTES | Quote | Chart | News | PowerRating) | 97 | 18.79 | 892K | 2,097M |
eResearch | ( ERES | Quote | Chart | News | PowerRating) | 94 | 28.30 | 373K | 495K |
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) | 14 | 45.55 | 3,430M | 3,771M |
Techne Corp. | ( TECH | Quote | Chart | News | PowerRating) | 5 | 18.95 | 571K | 1,816M |
Symantec | ( SYMC | Quote | Chart | News | PowerRating) | 16 | 39.81 | 6,603M | 3,813M |
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 |
Loews Corp. | ( LTR | Quote | Chart | News | PowerRating) | 13 | 38.80 | 643K | 1,062M |
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.
class=890430920-15102001>
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 |
Altria | ( MO | Quote | Chart | News | PowerRating) | 6 | 29.01 | 11,977M | 18,900M |
Cerner | ( CERN | Quote | Chart | News | PowerRating) | 1 | 17.55 | 1,323M | 2,811M |
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 |
Halliburton | ( HAL | Quote | Chart | News | PowerRating) | 71 | 20.81 | 4,018M | 3,148M |
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 |
Cephalon | ( CEPH | Quote | Chart | News | PowerRating) | 12 | 40.69 | 2,292M | 1,997M |
Intuit | ( INTU | Quote | Chart | News | PowerRating) | 8 | 38.44 | 4,840M | 3,215M |
Microchip Technology | ( MCHP | Quote | Chart | News | PowerRating) | 13 | 20.53 | 4,957M | 3,298M |
Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) | 23 | 34.20 | 14,886M | 13,887M |
Best of luck to everyone. 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.