Monday’s Top Stocks
Closing prices were mixed and fractional in the index proxies, as some traders
made it to their desks for the first day of trade in 2004. The day ended in
a meager .29% loss for the Dow, and an even slimmer .16% gain for the Nasdaq
after an initial, much-anticipated psychological ‘relief’ gap, as well as some
fresh monies being put to work after two weeks of upside action. Put it all
together–and for serious investors, the real value looks to have been outside
of the usual playing field of the market and possibly spent on the slopes instead.
Ironically enough and keeping to the winter theme, one might say that the market
looked a bit like a downhill slope from the fresh peaks conquered this morning.
But taken within the context of the market’s ongoing confirmed rally, today’s
descent looks to be nothing more than the market catching its breath after a
nice long climb.
Oh Yahoo!! That’s right, the holidays are over, the market is in a confirmed
rally and Monday, if nothing else, should at least have the troops rallying
as many come back from their extended holiday. Status quo in these parts as
the market is still slightly overbought in the short term, but that is probably
the subject of debate, depending on who you decide to ask. Personally, I look
at the lean and mean, quality growth stock names and see how they’re shaping
up in the new year vs. their big ol’ index friends, to gauge the market’s temperature
in these cold and chilly days of winter…’ahh, nice and warm still.’ Of course,
just because things are still generally looking good, doesn’t mean to throw
caution to the wind–especially when you’ll be hearing more about the January
effect, upside forecasts, and top 10 stock picks…than you have in a long time.
Even in a bullish trend, our bovine friends can turn quite nasty for those who
actually wait for confirmation from the matadors of the media–telling us that
the coast is finally clear to come out onto the playing field.
My own preference within the market’s confirmed rally is to buy the leading
names as they move out of bases, while the market is pulling back constructively.
But that’s only a preference, and subject to turn on a dime, as long as my money
management tactics are in place. One preference that isn’t bound to change,
and the only mantra that you really need to listen to–is stick with what got
you this far in the first place, namely 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) |
18.22 | up .71 | cvr 2,6 buy | 10% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
24.60 | up .11 | none | 2% above | not at extreme |
Hottest Sectors : Gold/Silver (XAU) and Pharmaceuticals
(
PPH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors :Â Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)and Retail
(
RTH |
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 |
| World Acceptance | ( WRLD | Quote | Chart | News | PowerRating) |
22.25 | Top of range consolidation on high volume b/o of 2 month basing pattern |
148 | 1,519 |
| Biolase Technology | ( BLTI | Quote | Chart | News | PowerRating) |
19.15 | High of day close on increased, above-average volume out of 5-day consolidation to fresh All Time Highs |
631 | 2,359 |
| Altair Nanotechnologies | ( ALTI | Quote | Chart | News | PowerRating) |
3.19 | ‘Theme stock’ , top of range consolidation on increased volume surge out of daily chart 5-week b/o pattern |
1,611 | 10,887 |
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 |
| General Mills | ( GIS | Quote | Chart | News | PowerRating) |
45.01 | Bottom of range consolidation on test of 50-day SMA, Low RS issue |
1,562 | 1,124 |
| KVH Industries | ( KVHI | Quote | Chart | News | PowerRating) |
25.99 | Low of day close on increased, above average volume b/d of recent pivot lows |
292 | 376 |
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 |
| NA | NA | NA | NA | NA | NA |
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 |
| Hewlett Packard | ( HPQ | Quote | Chart | News | PowerRating) |
23.16 | 11,314 | 8,248 |
| Sina | ( SINA | Quote | Chart | News | PowerRating) |
37.90 | 8,859 | 9,865 |
| Juniper | ( JNPR | Quote | Chart | News | PowerRating) |
19.68 | 8,444 | 13,239 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Lowes | ( LOW | Quote | Chart | News | PowerRating) |
53.90 | 3,388 | 2,798 |
| QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
51.22 | 4,006 | 1,926 |
| Best Buy | ( BBY | Quote | Chart | News | PowerRating) |
50.82 | 4,269 | 3,213 |
Best of luck to everyone. Please use protective stops on all trades.