Monday’s Top Stocks
It’s what some might call, ‘even fuglier.’ Today’s trade took all the major
averages down further into No Mans Land after a morning attempt at rallying
from an already oversold technical condition. For the session, all the S&P500
and Nasdaq Composite closed near session lows–off between a very respectable
.57% to 1.97% on more heavy, smart money selling. Hmm, a week ago on the boob
tube they were saying, after the latest and greatest economic number was released,
that, and I’ll quote, ‘you have to be a buyer here.’ Well, it wasn’t the exact
top, the Naz did in fact push almost .05% higher, but it’s been all downhill
ever since–and guess what, not a soul is buying…wink, wink, nod, nod.
Another big red ugly bar on volume indicative of the same sort of chaps who
were doing the supposed smart thing only several sessions back, by being buyers…go
figure. Go figure indeed–well how about go figure 1900, and a double bottom
test in the Naz? Maybe, maybe not, but don’t think selling down here is the
‘smart’ money thing to do, ’cause the intermediate downtrend, has become way,
short-term oversold. There probably isn’t a single chart out there that they
haven’t thrown the bath water on to already–especially if you look at top intermediate-term
growth stock names such as CRDN, SLAB, GPRO, and KSWS to name a few. Yes, some
of these names did shock the street with numbers not worthy of their prior bases–but,
when I see such widespread bloodletting from the bull, I just can’t help but
feel ready for some reversal longs.
Truth be told, I was ready today with my first two intraday alerts both coming
from the long side. But, with fourteen of the next seventeen price triggers
all emphasizing either position shorts, or a neutral bias out of the pattern–this
cautious bull quickly came to his senses. Longs, when the market becomes more
oversold, just aren’t going to add up–whereas shorts, however perverse it might
seem to some, seem to make a whole lot of ‘cents.’ Personally, I’ll come in
Monday with mostly ideas concerning reversal longs…again. But, if they don’t
work, or don’t materialize out of intraday patterns, then I’ll just keep honed
in on what is, by sticking it out with disciplined, consistent daytrading tactics.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
17.45 | up .15 | na | 11% above | at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
25.19 | up .29 | cvn 3, 6 buy | 9% above | not at extreme |
Hottest Sectors : Pharamceutical
(
PPH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
Monday’s stocks to watch:
Longs.
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 Assesment | Average Volume 000’s | Today’s Volume |
| Magal Security Systems | ( MAGS | Quote | Chart | News | PowerRating) |
12.85 | ‘Fugly’ into daily chart technical support zone | 2,150 | 2,488 |
| NVE Corp | ( NVEC | Quote | Chart | News | PowerRating) |
36 | Double bottom pattern daily | 958 | 544 |
Technical Weakness.
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 Assesment | Average Volume 000’s | Today’s Volume |
| Corinthian Colleges | ( COCO | Quote | Chart | News | PowerRating) |
30.45 | Bottom of range close on above-average volume reversal bar within pullback |
929 | 2,076 |
| Symantec | ( SYMC | Quote | Chart | News | PowerRating) |
45.07 | Testing daily supports on above-average volume, finishing bottom of range |
4,714 | 5,668 |
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 000’s | Today’s Volume |
| NA | NA | NA | NA | NA | NA |
^next^
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| NA | NA | NA | NA | NA | NA |
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 000’s | Today’s Volume |
| Adobe | ( ADBE | Quote | Chart | News | PowerRating) |
41.53 | 3,414 | 3,199 |
| Best Buy | ( BBY | Quote | Chart | News | PowerRating) |
54.25 | 3,742 | 4,243 |
| Network Appliances | ( NTAP | Quote | Chart | News | PowerRating) |
18.61 | 4,974 | 6,390 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Merrill Lynch | ( MER | Quote | Chart | News | PowerRating) |
54.23 | 4,794 | 6,021 |
| Amgen | ( AMGN | Quote | Chart | News | PowerRating) |
5.41 | 9,320 | 10,475 |
| General Electric | ( GE | Quote | Chart | News | PowerRating) |
29.95 | 28,775 | 23,148 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler