Monday’s Top Stocks
Oracle
(
ORCL |
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PowerRating) might have “seen” better things
in the days ahead, but the ETFs saw lower prices in Friday’s trade.
Was the selling due to the fact that today was Friday the 13th, and a
superstitious Wall Street was panicked into profit-taking? Or, was the
combination of Adobe Systems
(
ADBE |
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PowerRating)
less-than-welcome earnings report, a Deutsche Bank downgrade of
Intel
(
INTC |
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PowerRating), and depressed students at
Michigan (I’m kidding) the culprit in today’s trade?
That’s up to you to decide for yourself. But, while we’ll never know if there
were “more sellers than buyers,” with the Spyders
(
SPY |
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PowerRating), Nasdaq 100
(
QQQ |
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PowerRating)
Diamonds
(
DIA |
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PowerRating) closing down between approximately 1% and 2.25%,
the sellers could definitely be considered the more aggressive of the two
groups. Volume was moderate in today’s “profit-taking,” but did show signs of
distribution. And as far as market breadth was concerned, declining issues, not
so coincidentally, dominated advancers by approximately 2:1.
“Bull, bear, who da’ heck care?” Today’s trade was marked by a “wave of
sellers” within our “confirmed rally.” Is it the crest of the next tidal wave to
sweep over the market? Some technicians have been referencing this week as a
potential intermediate top, so maybe this is the start of something bigger, if
you happen to believe in time cycle analysis. Myself, you ask? When I see it,
I’ll believe it. I personally don’t pick tops and bottoms off of dates, I let
price and volume be my guide. And as you probably know, this is all secondary to
my belief, that regardless if it’s a bull or bear, it’s definitely good to be a
daytrader.
We’ll continue to profit best, by focusing on that which matters. By staying
on top of our list of High and Low RS issues and executing only those quality
setups that happen in the here and now. Our biggest concern is not whether the
animal lurking in the background is a bull or bear, but whether we’re prepared
to take advantage of the intraday waves that produce tsunami type results.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
( $VIX.X | Quote | Chart | News | PowerRating) |
22.88 | up .55 | None | 0% | Not At Extreme |
( $VXN.X | Quote | Chart | News | PowerRating) |
34.46 | up .45 | None | 1% above | Not At Extreme |
Hottest Sectors : Gold & Silver
(
$XAU.X |
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Chart |
News |
PowerRating) and
(
$HMO.X |
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PowerRating)
Weakest Sectors : Semiconductors
(
SMH |
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PowerRating) and Oil Services
(
OIH |
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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 | Today’s Volume |
| U of Phoenix | ( UOPX | Quote | Chart | News | PowerRating) |
48.68 | 52-Week high closing top of range in consolidation on volume |
231k | 477k |
| Gtech Holdings | ( GTK | Quote | Chart | News | PowerRating) |
38.40 | High level consolidation at fresh 52-Week highs, 2-month consolidation breakout in today’s trade on volume |
639k | 2,032m |
| Forest Labs | ( FRX | Quote | Chart | News | PowerRating) |
57.97 | Consolidation at top of range on new 52-Week highs with heavy volume |
2,916m | 3,157m |
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 | Today’s Volume |
| Netflix | ( NFLX | Quote | Chart | News | PowerRating) |
19.20 | Low level consolidation on daily breakdown below price supports on confirming volume |
1,151m | 4,708m |
| Laboratory Corp. | ( LH | Quote | Chart | News | PowerRating) |
28.30 | Low RS stock closing weak off continuation of technical daily reversal |
1,583m | 2,004m |
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 | Today’s Volume |
| Entegris | ( ENTG | Quote | Chart | News | PowerRating) |
12.59 | 3-Day low volume pullback into daily price supports, closing in a low level consolidation pattern |
466k | 226k |
Short Reversals Closing Basis.
None Today.
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 | Today’s Volume |
| Eli Lilly | ( LLY | Quote | Chart | News | PowerRating) |
65.24 | 3,722m | 5,039m |
| SLM Corp. | ( SLM | Quote | Chart | News | PowerRating) |
124.49 | 933k | 1,086m |
| Gilead | ( GILD | Quote | Chart | News | PowerRating) |
53.81 | 3,747m | 4,931m |
Institutional Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| NVIDIA | ( NVDA | Quote | Chart | News | PowerRating) |
23.49 | 10,169m | 15,141m |
| Johnson & Johnson | ( JNJ | Quote | Chart | News | PowerRating) |
52.56 | 8,279m | 7,299m |
| Adobe | ( ADBE | Quote | Chart | News | PowerRating) |
31.55 | 3,485m | 22,410m |
Best of luck to everyone. Please use protective stops on all trades.