Monday’s Top Stocks
Fresh 52-Week Highs were established in two of our three market amigos, as
both the S&P 500 (SPY) and the Dow Jones 30 (DIA) were able to rise to the
occasion. Not too shabby after yesterday’s solid reversal action within the
market’s ‘confirmed rally.’ All in all though, the action intraday was typified
by lethargic, grinding trade as traders kept the broader averages’ closing prices
fractionally mixed between down .20% to up .20%. Now that Dow 10,000 has been
conquered–what’s next for the market?? Dunno, but I do know that Monday will
usher in more of the regularly scheduled program, giving bulls and bears something
to do, while CNBC tries to figure out their next programming fixture.
After establishing gains of approximately 3% from its reversal lows, the Naz
took a break in Friday’s trade. A consolidation-type day is necessary and expected
as traders digest their recent gains and losses, while also repositioning themselves
for the next high-probability move. The semiconductors (SMH) were in the red
for much of the session, lending support to the idea that today was not going
to be the best day to force the trade from the long side, or any side for that
matter.
Monday should bring in stronger volume as traders and investors have an entire
weekend to look at the tea leaves and put in their well-placed orders within
the market’s ‘confirmed rally.’ Sell orders, buy orders, opening shorts…it
all makes the market go up and down each and every day. For us though, the one
thing that keeps us ‘up’ regardless of the zigs and zags, is sticking with the
stuff that’s gotten us here 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) |
15.95 | up .09 | cvr 1 sell | 4% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
25.86 | down .29 | none | 4% below | not at extreme |
Hottest Sectors : Oil Services
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OIH |
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PowerRating)and Internet
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HHH |
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Weakest Sectors : Retail
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RTH |
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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 |
| Navigant Consulting | ( NCI | Quote | Chart | News | PowerRating) |
17.86 | High level consolidation, increased volume, closing near 52-week high pattern b/o levels |
353 | 279 |
| UT Starcomm | ( UTSI | Quote | Chart | News | PowerRating) |
38.45 | Top of range consolidation on increased, above average volume, closing at prior weekly b/o levels after failed first attempt |
4,284 | 3,764 |
| Genentech | ( DNA | Quote | Chart | News | PowerRating) |
87.80 | high level consolidation on daily volume test of cup and handle b/o |
2,530 | 1,367 |
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 |
| AT & T | ( T | Quote | Chart | News | PowerRating) |
18.98 | low level consolidation on increased, above average volume thru daily technical supports |
5,671 | 11,586 |
| Mobile Telesys | ( MBT | Quote | Chart | News | PowerRating) |
77.55 | Closing bottom of range intraday, at daily price supports below key MAs |
292 | 120 |
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 |
| QLogic | ( QLGC | Quote | Chart | News | PowerRating) |
51.75 | Inside consolidation bar off technical hammer reversal on strong volume |
4,272 | 2,850 |
| Polymedica | ( PLMD | Quote | Chart | News | PowerRating) |
24.40 | Wide range bar on volume, breaking downtrend line, closing top of range in consolidation |
344 | 898 |
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 |
| eBay | ( EBAY | Quote | Chart | News | PowerRating) |
57.70 | 9,018 | 7,012 |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
51.01 | 9,720 | 11,324 |
| Amgen | ( AMGN | Quote | Chart | News | PowerRating) |
59.43 | 10,190 | 8,317 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Lowes | ( LOW | Quote | Chart | News | PowerRating) |
55.05 | 3,549 | 2,547 |
| Adobe | ( ADBE | Quote | Chart | News | PowerRating) |
40.20 | 3,597 | 10,303 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler