Monday’s Top Stocks
Price was nice as both the S&P500 and Nasdaq Composite finished up between
.40% to .81%–but for this cautious bull, that’s about as far as the niceties
go. With volume still well-below average, a Follow-Thru-Day nowhere to be
found in our two-week old trading range, and a mixed fractional
performance for the entire week–no ‘yahoo’ here, only a thank god its Friday.
The good news is that we are one day closer to breaking the trading range. As
an investor I’d like to see supports hold and have some of my favorite growth
issues regroup themselves and ultimately breakout of some constructive
looking bases–that’s what I’d like to see. Unfortunately, the reality of what
I’m still seeing in the charts is a plethora of potential shorts and possibly
some reversal longs–if the market were to break the range to the upside. What
I’m not finding are many leading growth issues ready to break out to fresh
highs. There are a few names, such as DRIV and ERES that look good, but they are
a part of the minority right now, and trying to play the breakouts in this
environment doesn’t exactly give the best odds.
For the daytraders out there, let’s just get ready for the return of some
high-probability trading out of the range. It will happen soon enough, but until
it does, yesterday’s message still seems to ring true–‘while there’s still
trading to be had from both sides of the coin–range bound, light volume
characteristics typically don’t add up to whole lot of cents either. Learn not
to trade every wiggle and learn to watch–it might not add to a whole lot of
cents, but it sure makes sense within the realm of disciplined, consistent daytrading.’
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
19.16 | down .20 | na | 1% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
24.90 | down .64 | na | 9% below | not at extreme |
Hottest Sectors : Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Oil Services
(
OIH |
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 |
| ShuffleMaster | ( SHFL | Quote | Chart | News | PowerRating) |
33.17 | relative above-average volume gap doji above technical resistance within weekly base |
452 | 482 |
| United Surgical Partners | ( USPI | Quote | Chart | News | PowerRating) |
37.35 | Above average continuation bar within ‘right side of base’ consolidation pattern |
261 | 293 |
| Digital River | ( DRIV | Quote | Chart | News | PowerRating) |
32.46 | inside day holding daily chart handle pivots within weekly base |
797 | 769 |
^next^
Shorts.
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 |
| Transocean | ( RIG | Quote | Chart | News | PowerRating) |
25.72 | Bottom of range consolidation w/in daily chart pullback from lows |
3,133 | 2,060 |
| Accredited Home Lenders | ( LEND | Quote | Chart | News | PowerRating) |
27.61 | Bottom of range close, trend resumption bar out of pullback from lows |
660 | 319 |
Institutional Longs and Institutional Shorts.
The following stocks are selected from the Nasdaq, S&P 500 & 600 Indices,
and HOLDRs.
Institutional Longs
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Teva Pharma | ( TEVA | Quote | Chart | News | PowerRating) |
64.99 | 2,657 | 1,951 |
| Research In Motion | ( RIMM | Quote | Chart | News | PowerRating) |
109.02 | 5,758 | 9,106 |
Institutional Shorts
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| KLA-Tencor | ( KLAC | Quote | Chart | News | PowerRating) |
44.68 | 8,500 | 8,076 |
| Amazon | ( AMZN | Quote | Chart | News | PowerRating) |
41.17 | 7,294 | 5,273 |
| Altria | ( MO | Quote | Chart | News | PowerRating) |
49.32 | 6,366 | 6,291 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler