Monday’s Top Stocks
Lighter, mixed volume and consolidation days for both the S&P 500 and the
Nasdaq Composite cap off a week that saw fresh dementia in the form of multi-year
highs, and also the market’s first bona fide pullback in more than five weeks
of trade. On the session our bovine friends finished so flat on the day that
it’s hardly worth mentioning, especially after yesterday’s solid test of technical
supports. What I will mention is that the Nasdaq has pulled back a very respectable
5% from highs, and the ever-important semiconductor sector declined 10% as it
pierced technical supports in yesterday’s trade. ‘Oh yahoo!!’– ’cause for ‘cautious
bulls’ within a confirmed bull market–it’s exactly the type of thing that we
like to hang our horns on.
With today’s triple inside action by our index friends–things, it might be
said, are definitely looking up. Raging bull is being cleared off the Street,
or is that road kill? Opportunity is availing itself once more for those that
like the higher-probability setups within the market’s confirmed rally. It might
take some poking, prodding, and getting stabbed a little bit by our own horns
as we don the bull gear–but that’s alright by me. With our rules in place,
the technicals in our favor, and the knowledge that now, things all of a sudden
have stopped looking so good to many market mavens–the pullback is looking
that much better to these hazel orbs. But, regardless of what’s looking good
on any given day–the one thing that always looks good is 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) |
17.05 | down .06 | cvr 3 buy | 10% above | at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
24.91 | down .29 | cvn 3,5 buy | 11% above | at extreme |
Hottest Sectors : Gold/Silver (XAU) and Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors :Â Biotech
(
BBH |
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 |
| Magma Design | ( LAVA | Quote | Chart | News | PowerRating) |
28.74 | High of day close on increased, above-average volume thrust bar to fresh 52-week highs |
726 | 3,217 |
| FARO Tech | ( FARO | Quote | Chart | News | PowerRating) |
29.83 | Top of range consolidation to reverse hammer technical reversal off MA and Fib supports |
801 |
725 |
| Cytc Corp | ( CYTC | Quote | Chart | News | PowerRating) |
16.24 | Wide range thrust bar on increased, above-average volume on pattern and 52-week b/o |
1,199 | 3,954 |
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 |
| Magna | ( MGA | Quote | Chart | News | PowerRating) |
81.18 | Bottom of range consolidation on above-average volume, breaking 20-day EMA on deteriorating technicals |
196 | 381 |
| Avocent | ( AVCT | Quote | Chart | News | PowerRating) |
36.56 | Inside bar, bottom of range close, failing at key MA resistance | 385 | 331 |
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 |
| Exult | ( EXLT | Quote | Chart | News | PowerRating) |
6.28 | Wide range reversal bar off fib supports on substantial volume to close at highs of day |
1,040 | 9,053 |
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 |
| Agilent | ( A | Quote | Chart | News | PowerRating) |
36.86 | 3,080 | 5,560 |
| Staples | ( SPLS | Quote | Chart | News | PowerRating) |
26.61 | 3,228 | 4,621 |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
58.61 | 9,389 | 8,540 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Linear Technology | ( LLTC | Quote | Chart | News | PowerRating) |
39.97 | 4,537 | 4,997 |
| Intuit | ( INTU | Quote | Chart | News | PowerRating) |
50.37 | 2,660 | 2,842 |
Best of luck to everyone. Please use protective stops on all trades.