Monday’s Top Stocks
After two sessions of consolidating, our ETF friends look like they may finally
be catching their collective breath. All three of the market proxies almost
pulled off the unthinkable after an absolutely ‘horrific’ economic jobs report,
rallying off of a gap lower to retest daily highs, with the Nasdaq Composite
actually scoring a fresh high. But then alas, the bargain hunters turned their
backs on most of their early morning prized ‘scoops’, selling them out not
much later in the day, as most probably had other concerns besides jumping
on the bandwagon. Hmmm??? Like possibly hitting the streets, hunting for jobs
as the Unemployment report suggested. And so went the day, as our market heroes
finished down collectively between .56% to .85% on ‘nearly even-steven’ and
above average trade with market breadth statistics leaning slightly in favor
of some well-deserved profit-taking.
And on the eighth day the market gods said, ‘let there be profit-taking.’
As I’ve been saying…’With major overhead resistance looming, I
personally don’t mind ducking for some cover. The natural cycle of
the market’s ebbs and flows usually dictates something more than a two-day
pause after nearly a month-long beeline higher
off of technical supports. This doesn’t mean I’m forecasting
doom and gloom. The volume levels are good, breakouts
have been triggering (for weeks now btw), and moving higher, or consolidating
in solid fashion, and we are in a ‘confirmed uptrend’ within the market. If
you look at the weekly charts of the ETFs, they don’t even look ‘extended’
or overbought, when viewed in the context of the summer-long consolidation.’
There you go for what it’s worth, but it sure would be nice to see a constructive
2% to 3% pullback into prior resistance zones and the 20-Day EMA. If the market
happens to do something a little bit different of course, we can always fall
back on our consistent, disciplined daytrading, even as the rest of the world
as we know it, stops making ‘cents.’
So maybe we will get ‘the necessary pullback’, but what’s most important is
that we continue to receive our RDA of consistent, disciplined daytrading. Stick
to your list of High and Low RS issues, and then as the dust settles and the
familiar patterns emerge, do what you do best each and every day. Trade like
a god ‘with the edge that you’ve been given’, and let the other guy worry about
whether he just bought the latest top in the market’s ‘confirmed rally.’
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX | Quote | Chart | News | PowerRating) |
19.37 | down .52 | none | 3.5% below | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
30.70 | down .21 | none | 3% above | Not At Extreme |
Hottest Sectors : Gold/Silver (XAU) and Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Broker/Dealers (XBD) and Homebuilders (HGX)
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 |
| Varian | ( VSEA | Quote | Chart | News | PowerRating) |
41.98 | mid level consolidation to close above daily chart congestion b/o triggers on volume |
978 | 1,383 |
| Scientific Games | ( SGMS | Quote | Chart | News | PowerRating) |
10.15 | Intraday high level consolidation, closing at weekly pattern breakout levels on significant volume surge |
630 | 3,553 |
| Findwhat.com | ( FWHT | Quote | Chart | News | PowerRating) |
25.56 | High level intraday consolidation above daily cup and handle b/o levels on strong volume |
564 | 1,121 |
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 |
| Aetna | ( AET | Quote | Chart | News | PowerRating) |
56.14 | Low RS issue, closing bottom of range on technical failure of 20 and 50-Day EMAs |
2,134 | 1,344 |
| Taro Pharmaceutical | ( TARO | Quote | Chart | News | PowerRating) |
51.06 | Low level consolidation on volume breakdown of recent technical supports |
353 | 385 |
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 |
| E-Loan | ( EELN | Quote | Chart | News | PowerRating) |
3.78 | Breakout of recent daily congestion off ‘broadening formation triangle’, closing top of range above the 200-Day EMA on heavy volume |
2,887 | 4,989 |
| Siebel Systems | ( SEBL | Quote | Chart | News | PowerRating) |
10.57 | Gap fill on daily, closing in pullback at intraday 1,2,3 reversal long levels |
11,286 | 15,100 |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| Dell | ( DELL | Quote | Chart | News | PowerRating) |
34.09 | ‘Broadening triangle formation’ ala ‘shooting star’ (no gap) on the daily chart with strong relative volume |
16,720 | 23,215 |
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 |
| Mercury Interactive | ( MERQ | Quote | Chart | News | PowerRating) |
49.41 | 3,086 | 5,375 |
| Texas Instruments | ( TXN | Quote | Chart | News | PowerRating) |
25.13 | 12,246 | 22,538 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Apollo | ( APOL | Quote | Chart | News | PowerRating) |
62.37 | 1,883 | 1,919 |
| Forest Labs | ( FRX | Quote | Chart | News | PowerRating) |
46.30 | 3,202 | 3,720 |
| Express Scripts | ( ESRX | Quote | Chart | News | PowerRating) |
58.99 | 1,368 | 3,126 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler