Monday’s Top Stocks
What do you get when you throw together an oversold market that gaps higher
and then consolidates in a narrow trading range for two-thirds of the session?
Well speaking personally, I’d rather take more oversold, because even though
it was nice to see the Nasdaq Composite and S&P 500 rally–the intraday
trading in this cautious bull’s opinion was treacherous at best. Kind of ironic
how the market’s opening gap–much of it placed on Oracle’s glowing earnings
report–was able to hold itself together, while Larry & Co. finished at
fresh Year-To-Date lows. Do you think the Oracle saw it coming? On the day,
the major averages did end up between 1.25% to 2.10, while finishing near their
best levels. The bad news for you IBD’ers out there, is the fact that volume
was much lighter and below-average. Hmm, funny how this scares the same people
that were so enthusiastic about January’s institutional accumulation. Oh well,
you don’t have to agree with me on today’s action, but hopefully we can all
agree on the fact that T.G.I.F. is finally here.
As mentioned, today was not my best. Gaps of this nature coupled with consolidations
make my style of trading very easy targets for getting stopped out. There was
enough volatility in individual issues to knock out the usual .15 to .35 stops
quite consistently. The semiconductor sector (SMH) has triggered on the intraday
charts during the past two sessions as a reversal long, after testing the very,
very top of a support zone between 38 -38.80, but the sloppy nature of the intraday
charts has made it difficult to maintain any longs in the realm of my intraday
universe. The position players are probably faring a little bit better at this
point with their own reversal longs as stop loss management is given greater
leeway. Oh well, that’s OK by me– because this cautious bull still knows that
over the long haul, disciplined, consistent daytrading tactics is the best way
to play the greatest show on earth.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
18.72 | down 2.99 | cvr 2,3,6 buy | 14% above | at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
25.23 | down 1.35 | cvn 2,6 buy | 6% above | not at extreme |
Hottest Sectors : Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Gold/Silver (XAU)
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 |
| Integra Lifesciences | ( IART | Quote | Chart | News | PowerRating) |
32.25 | Extended 60-minute chart lateral consolidation above key MAs |
234 | 117 |
| Serologicals | ( SERO | Quote | Chart | News | PowerRating) |
20.67 | High of day close, holding daily b/o pivots on pullback | 508 | 529 |
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 |
| Royal Caribbean | ( RCL | Quote | Chart | News | PowerRating) |
42.20 | Bottom of range consolidation on above average trade | 1,436 | 1,668 |
| Nordstroms | ( JWN | Quote | Chart | News | PowerRating) |
38.70 | Pullback from daily lows into resistance zone | 1,205 | 924 |
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 |
| Chinadotcom | ( CHINA | Quote | Chart | News | PowerRating) |
8.93 | High volume test of daily technical support zone | 5,117 | 8,184 |
| Semiconductor HOLDRs | ( SMH | Quote | Chart | News | PowerRating) |
39.62 | Inside day on above average volume, holding daily chart support zone |
13,479 | 21,337 |
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 |
| Juniper | ( JNPR | Quote | Chart | News | PowerRating) |
25.81 | 16,077 | 14,741 |
| Adobe | ( ADBE | Quote | Chart | News | PowerRating) |
35.71 | 3,432 | 3,301 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Oracle | ( ORCL | Quote | Chart | News | PowerRating) |
12.06 | 42,212 | 109,831 |
| Johnson & Johnson | ( JNJ | Quote | Chart | News | PowerRating) |
50.71 | 7,691 | 10,039 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler