Monday’s Top Stocks
The running of the bulls hit a barrier in today’s trade–the 2000 mark in the
Nasdaq Composite. You wouldn’t have known it of course, seeing how CNBC was
pulling out the proverbial party hats and balloons all session long–in anticipation
of this key psychological benchmark. Hmmm, it might just be time to put down
those party ‘horns’ for a bit, as the celebration, much like many other highly
anticipated numbers (anyone care for the Dow 10k hoopla) failed to provide the
actual favors for all those attending today’s celebration. With that said, after
the price spike over the ‘latest number’, the major indices failed to regain
their composure (although they did give it the ol’ college try intraday), closing
at session lows and off between .70% to .89%. No ‘yahoo’, although the lighter
trade will definitely give IBD (I’m sure) the impetus to write something positive
about today’s price action. Personally speaking, I’d rather bow to a fellow
technician’s words of something about a market fraught with flyers and plungers.
You’ve heard it here before, but it bears repeating, ‘bulls and bears, but
not pigs’–I think you can fill in the rest. In the past week the S&P 500
is only up about .50%, which realistically isn’t a whole lot, so the overbought
thingy is less qualified–but personally speaking, the cautious bull in me says
to ‘watch your hide’, or should that be ‘run and hide.’ I agree with Don Worden,
the man behind the first-paragraph quote. It’s a strange one indeed, and when
you don’t understand something, my philosophy is to ‘steer clear’, and stick
to what you do know. The one thing that still seems to make perfect sense in
my book, is to stick with the consistent, disciplined daytrading that got you
to Nasdaq 2000 in the first place.
They did it again–no, not the elusive Market Makers that try to hurt our portfolios.
No, the ‘they did it again’, would be a hats off to the consistent, disciplined
daytraders of the world. In an uncertain market, our style or way of life has
been an excellent opportunity to trade from both sides of the coin. Shorts,
longs, just not piggies–have all been able to take a piece out of the current
volatility. How will the coin come up on Monday??? Dunno, but I’ll guarantee
that it ain’t no 50/50 proposition what we’ll continue to do each and every
day, regardless if we dance with the bear, or end up running with the bull.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX | Quote | Chart | News | PowerRating) |
16.93 | up .19 | NA | 1% above | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
25.20 | down .15 | nA | 0% | Not At Extreme |
Hottest Sectors : Gold/Silver (XAU)
Weakest Sectors : Homebuilders (HGX) and Pharmaceuticals
(
PPH |
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 |
| Interdigital Communications | ( IDCC | Quote | Chart | News | PowerRating) |
19 | High volume 60 day b/o above price and EMA resistance, closing top of range |
744 | 933 |
| Websense | ( WBSN | Quote | Chart | News | PowerRating) |
24.99 | Extended 30min consolidation pattern near weekly pattern b/o levels |
401 | 252 |
| Scientific Games | ( SGMS | Quote | Chart | News | PowerRating) |
13.45 | High volume resumption of trend after 3 bar simple p/b | 968 | 2,064 |
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 |
| KB Homes | ( KBH | Quote | Chart | News | PowerRating) |
69.15 | High volume wide range bar after double top test, closing bottom of range |
1,002 | 2,043 |
| Countrywide Financial | ( CFC | Quote | Chart | News | PowerRating) |
102 | Shooting star b/d of price supports w/in high level consolidation, on increase in volume, and deteriorating stochastics |
2,337 | 2,373 |
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 |
| j2 Global | ( JCOM | Quote | Chart | News | PowerRating) |
27.12 | 30-min chart potential 123 setting up against price support zone of 26.80-27.10 |
1,770 | 3,411 |
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 |
| Merck | ( MRK | Quote | Chart | News | PowerRating) |
43.93 | 7,383 | 10,124 |
| Home Depot | HD|HD] | 37.37 | 8,895 | 4,726 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| KLA-Tencor | ( KLAC | Quote | Chart | News | PowerRating) |
59.53 | 8,767 | 7,179 |
| Amgen | ( AMGN | Quote | Chart | News | PowerRating) |
59.95 | 8,754 | 11,389 |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) |
26.10 | 56,805 | 57,815 |
| Citigroup | ( C | Quote | Chart | News | PowerRating) |
47.78 | 12,105 | 15,085 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler