Monday’s Top Stocks
‘The Oracle’ (ORCL) professed lighter-than-expected top-line numbers,
setting the early mood of our ETF friends as less-than-friendly for those who
‘bought’ yesterday’s sigh of relief. Hmmm, do you think Oracle ‘saw’ this one
coming? Maybe not, but the intraday reversals off the initial drubbing that
have our index proxy friends closing up between .08% to .53% are looking a
tad friendlier than yesterday’s action. For the bears’ argument, volume
was below-average and slightly less than yesterday’s figures, while market
breadth was only slightly favorable. So maybe some will chalk this one up for
the bears, but to that I’ll just say, ‘bull.’
It might have upset some of the overnight players, but personally I don’t
mind taking taking my hat off to the ‘big guy.’ Oracle gave investors and intraday
traders alike what I consider to be a much more workable bottom from which
to play off of. Within the eight session consolidation/pullback, the last three
sessions have tested various technical supports such as the 20-Day EMA, some
Fibonacci supports, as well as prior pivot highs. More importantly, today’s
action gave us a slightly lower-low, flushing some out in the process, before
reversing out of intraday Trapdoor and consolidation patterns to close at
session highs. Volume and breadth were not tremendous by any stretch of
the imagination, but a move thru established pivots on volume looks to be in
the cards, and with it we can anticipate a resumption of our trend up. But
hey, why all the forecasting? It’s not like I’m an ‘oracle’ or something, and
besides it’s much better to have consistently strong days whether a bull or
bear shows up, by simply sticking to our method of disciplined, consistent
daytrading.
It’s just what we were looking for, a classic retest of supports out of various
intraday patterns in many of our favorite stocks and ETF products. I guess
you can say, ‘thank god it’s Friday.’ It’s not always the case, but each and
every day we continue to come in prepared with our list of High and Low RS
stocks and take the trades out of high-probability patterns as they
develop intraday. Today happened to be ‘just one of those days.’ What will
Monday bring in? I honestly don’t know, but I do know that I’ll leave ‘some
room on my plate’ this weekend, for some potential tasty treats in the next
session.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX | Quote | Chart | News | PowerRating) |
20.25 | down .25 | CVR 1 Buy | 1% above | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
32.68 | down .29 | CVR 1,2 Buy | 5% above | Not At Extreme |
Hottest Sectors : Internet
(
HHH |
Quote |
Chart |
News |
PowerRating) and Homebuilders (HGX)
Weakest Sectors : Gold/Silver (XAU) and Disc Drives (DDX)
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 |
| Documentum | ( DCTM | Quote | Chart | News | PowerRating) |
21.15 | 13-Week cup and handle daily, closing top of range on above average volume, with pattern triggers thru 22 |
1,635 | 985 |
| Scientific Games | ( SGMS | Quote | Chart | News | PowerRating) |
11.87 | Top of range close on breakaway gap higher thru 52-week highs on confirming volume surge |
634 | 7,214 |
| Apollo | ( APOL | Quote | Chart | News | PowerRating) |
66.29 | Wide range bar with confirming volume, closing top of intraday range, approximately 1.5% from weekly High level base b/o’s |
1,956 | 3,175 |
| ADTRAN | ( ADTN | Quote | Chart | News | PowerRating) |
65.80 | Top of range consolidation close on resumption of daily uptrend out of p/b |
1,096 | 817 |
| EarthLink | ( ELNK | Quote | Chart | News | PowerRating) |
8.42 | Top of range close within 3-Month Cup & Handle near daily triggers |
1,607 | 1,029 |
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 |
| Fti Consulting | ( FCN | Quote | Chart | News | PowerRating) |
23.85 | Bottom of range close on technical break of price supports and 50-Day EMA on ‘relative’ volume increase |
863 | 1,308 |
| XL Capital | ( XL | Quote | Chart | News | PowerRating) |
74.80 | Resumption bar of daily downtrend on above average volume, closing bottom of range |
841 | 1,017 |
| Getty Images | ( GYI | Quote | Chart | News | PowerRating) |
38.65 | Closing bottom of range on technical break of price and 50-Day EMA on volume |
372 | 476 |
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 |
| Netscreen | ( NSCN | Quote | Chart | News | PowerRating) |
23.05 | Daily hammer close after test of 62% level from July lows on strong volume. Triggers set above intraday consolidation resistance and ‘recross’ of the 50-Day EMA & prior bear gap highs |
1,951 | 3,411 |
| Cognos | ( COGN | Quote | Chart | News | PowerRating) |
31.80 | Low level consolidation on test of bullish daily price gap on above-average trade |
963 | 1,288 |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| Â | Â | Â | Â | Â | Â |
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 |
| Mercury Interactive | ( MERQ | Quote | Chart | News | PowerRating) |
48.26 | 3,124 | 4,072 |
| Microsoft | ( MSFT | Quote | Chart | News | PowerRating) |
28.34 | 56,861 | 55,518 |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
42.82 | 10,695 | 15,088 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| 3M | ( MMM | Quote | Chart | News | PowerRating) |
138.23 | 2,106 | 1,958 |
| Altria | ( MO | Quote | Chart | News | PowerRating) |
40.57 | 7,654 | 4,830 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler