Monday’s Top Stocks
More light-volume ‘profit-taking’ took both the Nasdaq and S&P 500 down
slightly more than 1%, as the only ‘No.2’ sighting today was in the indices
themselves. Apparently a lot of hard commodities are at 52-week (and then some)
highs, so I guess there’s an investor appetite for some things out there–just
not equities at this particular time. Oh well, it’s Friday, and market participants
have all weekend to think about if more ‘profit-taking’ is in the cards come
Monday, or if it’s time for the smart money to start chanting the bargain-hunting
mantra. As you know, with March Madness–the game is always up for grabs.
Flexibility was the key today, and the proof is in the pudding. As stated yesterday,
it’s really become an environment where it pays to look for opportunities from
both sides–and I know in this little corner of the universe, that’s exactly
how it played out. On a personal level, out of all the shorts and longs that
I personally came up with for our subscribers, it was a long market call in
Mercury Interactive that actually played out the best intraday. Meanwhile, on
a down session in the market–a couple of my shorts, and one in particular–namely
Magma Design (LAVA)–actually had me seeing red intraday. As the great Homer
has said on more than one occasion–Doh!!! It just goes to show you, it’s impossible
to know where the profit is ultimately going to come from before the trade is
complete–the only thing that I know for sure is that I’d rather just keep on
doing it with our consistent, disciplined brand of 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 | up .54 | cvr 1 sell | 1% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
25.99 | up .22 | na | 1% above | not at extreme |
Hottest Sectors : Software
(
SWH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Semiconductors (SMH)
Monday’s stocks to watch:
Technical Strength.
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 |
| Verint Systems | ( VRNT | Quote | Chart | News | PowerRating) |
28.38 | Top of range consolidation on increased, above-average volume |
126 | 195 |
Technical Weakness.
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 |
| Gilead Sciences | ( GILD | Quote | Chart | News | PowerRating) |
55.30 | Lows of session, with 50-Day EMA overhead resistance, part of complex head and shoulder pattern |
3,405 | 2,173 |
| Phelps Dodge | ( PD | Quote | Chart | News | PowerRating) |
83.34 | Engulfing bearish on increased trade, off pullback from lows |
2,274 | 2,121 |
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 |
| Semiconductor HOLDRs | ( SMH | Quote | Chart | News | PowerRating) |
37.63 | Closing fractionally below daily chart key supports on lighter trade, with potential 5 point broadening triangle pattern daily |
13,748 | 13,962 |
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 |
| Adobe | ( ADBE | Quote | Chart | News | PowerRating) |
39.85 | 3,294 | 19,833 |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
47.08 | 10,013 | 14,212 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Merck | ( MRK | Quote | Chart | News | PowerRating) |
43.77 | 7,576 | 7,927 |
| Caterpillar | ( CAT | Quote | Chart | News | PowerRating) |
76.30 | 2,674 | 2,441 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler