Monday’s Top Stocks
If it’s any consolation to those of you who tried to participate in today’s
narrow-range consolidation...’Yahoo–Thank Goodness It’s Friday!!!’ In the scheme
of things, it wasn’t all that bad either, considering that all three of our ETF friends managed to close in the green, up .15% to .92% on the day. The other
technical tea leaves weren’t as tasty in today’s trade, as volume came in lighter
and well-below-average. Market breadth also sent a mixed message to investors
mulling over what the latest move has in store for those participants trying
to see beyond the here and now of the present — and our ‘gift’ called the weekend.
The market’s house of mirrors had most of our friends looking like our pal
Slim Jim in today’s trade. Mr. Slim is the narrow-range consolidation that frustrates
those traders looking for action in every session. With movement confined to
less than .50% in the Spyders, not much has changed in a market that continues
to test technical resistance in the form of varying ‘double top’ formations.
The volatility indices continue to test levels that suggest that traders heed
the word ‘caution’, and not be so bent on listening to the words spoken by Art
‘Cashin’ on your daily dose of CNBC. Better yet though, the best piece of advice
that I can give to you is this–listen to the market through your daily dose
of consistent, disciplined daytrading, because seeing the results, not hearing
about them, is really what it’s all about.
The market can be a circus, even without the Level 2 blinking like some out-of-control
carnival ride. We might not be able to tame the animal itself, but we can most
certainly be in consistent, disciplined control of how we decide to perform
our own bag of tricks within each day’s performance. The best way for you to
do this is of course by continuing to have your list of High and Low RS issues
ready for action. Then, as the classic patterns appear, take decisive action
and continue to watch in awe. You just might find that, once again, something
very green appears in your trading account–almost as if by magic.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
19.24 | down .34 | none | 8% below | Not At Extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
27.62 | down 1.22 | none | 9% below | Not At Extreme |
Hottest Sectors : Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating) and Oil Services
(
OIH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Biotechs
(
BBH |
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 |
| New Century Financial | ( NCEN | Quote | Chart | News | PowerRating) |
32.70 | Volume thrust higher, closing top of range consolidation within 4% of 52-week highs |
850 | 991 |
| ADTRAN | ( ADTN | Quote | Chart | News | PowerRating) |
74.19 | Inside day near 52-week highs, within 5-day narrow range consolidation |
1,198 | 525 |
| Zebra Technologies | ( ZBRA | Quote | Chart | News | PowerRating) |
57.72 | 30-Minute intraday ascending triangle on top of recent weekly breakout levels |
301 | 332 |
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 |
| Northrop | ( NOC | Quote | Chart | News | PowerRating) |
85.37 | Descending triangle pattern w/in Low RS issue, near daily test of range supports |
1,101 | 1,456 |
| United Online | ( UNTD | Quote | Chart | News | PowerRating) |
30.37 | bottom of range consolidation on volume, 2nd day of consolidation after technical daily b/d |
1,544 | 2,389 |
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 |
| Zoran | ( ZRAN | Quote | Chart | News | PowerRating) |
18.53 | Triple Crown Zone on daily, closing in doji setup w/in a symmetrical triangle on the 30-min. time frame |
1,621 | 1,319 |
| Synopsys | ( SNPS | Quote | Chart | News | PowerRating) |
27.11 | Heavy volume daily hammer off bull gap fill technical supports | 1,075 | 4,861 |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| Marvell Technology | ( MRVL | Quote | Chart | News | PowerRating) |
42.63 | Descending 30-minute extended triangle, after test of prior highs…setting up as possible 1,2,3 daily reversal formation |
3,120 | 2,178 |
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 |
| Electronic Arts | ( ERTS | Quote | Chart | News | PowerRating) |
101.60 | 2,874 | 2,654 |
| Network Appliance | ( NTAP | Quote | Chart | News | PowerRating) |
25.17 | 6,607 | 11,171 |
| Interactive Corp. | ( IACI | Quote | Chart | News | PowerRating) |
38.93 | 8,576 | 7,417 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Computer Associates | ( CA | Quote | Chart | News | PowerRating) |
23.50 | 3,722 | 21,542 |
| Wal-Mart | ( WMT | Quote | Chart | News | PowerRating) |
58.42 | 7,280 | 4,435 |
| General Electric | ( GE | Quote | Chart | News | PowerRating) |
29.32 | 19,090 | 35,610 |
| Cisco | ( CSCO | Quote | Chart | News | PowerRating) |
20.79 | 53,242 | 38,768 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler