Monday’s Top Stocks
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Lackluster trade would be one way to describe Friday’s market activities, but a better choice of words might be divergent, or dare I say…schizophrenic. With a complete lack of economic and corporate news on the market front, investors were free to leave for the beachfront properties extra early. Our ETF friends ended the session very mixed. The Q’s were off .79% on weakness linked to the love ’em or leave ’em semiconductor sector (SMH), while the Spyders turned in a rather flattish .25% move up, and the Diamonds once again glittered for investors, up .70%. Well, if that wasn’t enough to get you packing for the beach digs, then the well-below-average volume, and the quagmire of up/down and all around breadth statistics might have you wishing that you did.
I’m sure you’ll hear all about it on the financial networks, hmmm…actually I’m not quite sure what they’ll say. The Nasdaq or Q’s (your choice) are both below their respective 50-Day EMAs, and the semiconductors are testing this same benchmark on a closing basis. Our other two ETF friends, while doing respectably off of their recent technical tests, have not shown the type of institutional interest to spark an enthusiastic love affair with equities once more. Divergent action in many growth stocks continues to dictate the daily head spinning, and lack luster volume has only exacerbated the issue. Who knows what they’ll say. For yours truly, all that I can say is once again, thank you for consistent, disciplined daytrading.
I’ll heed the words that one of our TM members wrote in an email…’don’t get cocky, kid.’ And you can thank Han Solo for those words if you agree. We’ll continue to come in each and every day with our list of High and Low RS issues, and technical levels ready for action. When the patterns set up, we’ll take the high-probability trade with the long-term edge, but when the conditions aren’t right, we won’t use our inner ‘deadly force’, i.e., ego, otherwise we might see our ‘green friend’ disappear (substitute money or Yoda for different endings to our story).
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
21.29 | down .60 | none | 2.5% below | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
32.03 | down 1.99 | CVR 2 Buy | 0% above | Not At Extreme |
Hottest Sectors :Â Gold/Silver (XAU) and
Retail
(
RTH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating) and Disc
Drives (DDX)Â
Monday’s HELVETICA>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 |
| Freeport McMoran | ( FCX | Quote | Chart | News | PowerRating) |
27.59 | Top of range close on a high volume thrust bar to close near 52-week highs |
1,885m | 2,887m |
| Frontier Air | ( FRNT | Quote | Chart | News | PowerRating) |
14.06 | closing at 52-week highs and pattern b/o levels |
526k | 588k |
| Netease | ( NTES | Quote | Chart | News | PowerRating) |
44.79 | Hammer reversal daily chart, off 50-Day EMA technical reversal |
2,372m | 5,848m |
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 |
| OmniVision | ( OVTI | Quote | Chart | News | PowerRating) |
40.12 | continuation of trend lower after establishing 52-week highs, closing bottom of range |
1,501m | 799k |
| Microstrategy | ( MSTR | Quote | Chart | News | PowerRating) |
34.90 | Bottom of range consolidation on heavy volume and continuation of recent trending action |
523k | 752k |
| Macromedia | ( MACR | Quote | Chart | News | PowerRating) |
17.94 | Bottom of range consolidation on daily breakdown of recent range, on volume |
1,087m | 1,437m |
| Celestica | ( CLS | Quote | Chart | News | PowerRating) |
13.80 | Closing bottom of range in a daily chart head and shoulders pattern, below neckline |
1,793m | 996k |
class=890430920-15102001>
class=890430920-15102001>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.
class=890430920-15102001>Long Reversals class=890430920-15102001>Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
| Semiconductors | ( SMH | Quote | Chart | News | PowerRating) |
30.50 | 1,2,3 intraday low off the 50-Day EMA and a 50% fibonacci retracement from 6/24 lows |
7,217m | 12,531m |
class=890430920-15102001>
Short
Reversals
Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
class=890430920-15102001>
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 |
| Paychex | ( PAYX | Quote | Chart | News | PowerRating) |
33.17 | 2,810m | 2,438m |
| Wal-Mart | ( WMT | Quote | Chart | News | PowerRating) |
57.77 | 7,616m | 6,047m |
| Bed, Bath & Beyond | ( BBBY | Quote | Chart | News | PowerRating) |
39.85 | 3,580m | 3,022m |
| Bank One | ( ONE | Quote | Chart | News | PowerRating) |
39.37 | 4,070m | 2,701m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Cephalon | ( CEPH | Quote | Chart | News | PowerRating) |
43.68 | 2,094m | 3,252m |
| Dell | ( DELL | Quote | Chart | News | PowerRating) |
30.94 | 16,345m | 14,139m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.
Chris Tyler