Monday’s Top Stocks
‘Da Bears’…that’s right within the market’s ‘confirmed rally’, the bears
were quickly all over yet another top. I’m sure one of these days they’ll get
it right for more than a session or two. In fact, or at least opinion–today
was a pretty good spot to join the other side, as the major indices finished
off down between .68% to 2% on the Nasdaq Composite. Volume was lighter and
below average on both the S&P and Naz cash indices, so some honors do go
to the bulls, but with a .50 ratio of advancers to decliners in the leading
Nasdaq Composite, as well as its first close below the 20-day EMA in over two
weeks, ‘profit-taking’ (as the media will surely put it) sure doesn’t sound
like a bad idea.
Shake-‘n-bake action ruled the day after an initial breakout of the daily trading
range in the Spyders (SP-500) was thwarted by the recently lagging, but still
dearly loved Nasdaq Composite. The slight breach, only to reverse convincingly
back into the 12-day trading range doesn’t bode well for the short-term–within
the ‘confirmed rally.’ Now that both bulls and bears are satisfied as I sit
on the fence, we can get back to business. The market-leading Nasdaq is showing
some wear and tear with today’s closing action. Throw in the usual VIX argument,
intraday pattern highs that look very promising on a technical basis for the
bears, and I don’t think it’s too much bull to say that the today’s bulls might
get a real test next week, as the 50-day EMA (not too far removed from reality)
looks to be in the cards. But, that’s all stuff for the market pundits, of which
there are plenty–all that I really care about is disciplined, consistent daytrading
in the present, and making sure that we get to receive that gift each and every
day.
It was another triumph today, not necessarily for the bulls–but for the disciplined,
consistent daytraders willing to play from both sides of the trade. It wasn’t
the prettiest action either, but net-net–by executing the classic setups and
then exiting the trade with perceived edge, for either a small loss or hopefully
a larger average gain, it was in the end just another day from which ‘to profit
from it’–maybe it’s not what CNBC originally intended, but our collective hats
go out to them anyway.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX | Quote | Chart | News | PowerRating) |
16.94 | up .47 | cvr 1 sell | 0% | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
26.16 | up .71 | cvn 1 sell | 2% above | Not At Extreme |
Hottest Sectors : Pharmaceuticals
(
PPH |
Quote |
Chart |
News |
PowerRating) and Telecom
(
TTH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating) and Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
Monday’s stocks to watch:
Technical Strength Top of Range.
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 Strength | Average Volume 000’s | Today’s Volume |
| Quest Diagnostics | ( DGX | Quote | Chart | News | PowerRating) |
70.20 | mid level consolidation on above average trade, continuation of daily b/o pattern |
867 | 884 |
| Gevity HR | ( GVHR | Quote | Chart | News | PowerRating) |
19.80 | Top of range consolidation on weekly b/o attempt w/ confirmed volume, closing top of range |
321 | 860 |
Technical Weakness Bottom of Range.
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 Strength | Average Volume 000’s | Today’s Volume |
| Digital River | ( DRIV | Quote | Chart | News | PowerRating) |
25.50 | Bottom of range close on resumption of daily downtrend w/ 20/50 ema crossover |
760 | 428 |
| Mercury Interactive | ( MERQ | Quote | Chart | News | PowerRating) |
47.17 | Above average increased volume on technical break of price and EMA support |
3,398 | 3,458 |
| Ameritrade | ( AMTD | Quote | Chart | News | PowerRating) |
12.25 | Low of day close, heavy volume test of range supports, below 50-Day EMA |
3,800 | 23,293 |
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 |
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 |
| Verizon | ( VZ | Quote | Chart | News | PowerRating) |
32.61 | 7,565 | 8,830 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Network Appliance | ( NTAP | Quote | Chart | News | PowerRating) |
25.08 | 6,419 | 8,210 |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) |
25.50 | 58,973 | 83,146 |
| General Electric | ( GE | Quote | Chart | News | PowerRating) |
27.88 | 19,571 | 26,251 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler