Monday’s Top Stocks
I’m sure ‘somebody held the edge’ during this, the last day of the notorious
Expiration Week. Was it a triple, double, quadruple??–dunno personally, but
I can say this though–holding premium for some traders became a very expensive
proposition because today marked the fourth or fifth day of testing daily supports
on consolidation-type activity. For the session, the indices were up between
.17% to .57% on decreased, below-average activity. Hmmm?? Go figure if you can–personally
I can’t, but that’s someone else’s ‘edge.’ All I know is what I see from the
charts, and to these hazel orbs, it just plain looks like the bear is still
deep in hibernation as we approach winter, and the bull is just taking a rest
within the market’s ‘confirmed rally.’
It gets a bit tougher all around, even for the bulls–when the market consolidates
like it has during the past week. But, stay prepared–technical supports continue
to hold and volume is still confirming, while the media, it seems, is getting
increasingly nervous. If you don’t play the ol’ ‘reversal top’ game, and you
prefer to play the bull in a sensible manner–the market is in ‘the giving mood.’
Yes, it’s scary–what do you think, that you’re going to get a written invitation
that this is ‘the bottom’ before it happens? Come on, all that we can expect
out of playing the high-probability game is keeping the odds in our favor, but
even the house takes the occasional shellacking. The thing is, the house knows
where their edge lies, and they know how to keep it in the money over the long
haul. If you can’t handle ‘that’ bigger truth, then maybe you should just keep
to what got you through this ‘confirmed rally’ in the first place, namely consistent,
disciplined daytrading.
‘Where’s my Edge?’ Well, some of it comes from keeping the ol’ noggin clear
of any headache’S’. But, most of it comes from taking one day at a time, and
then waiting for the high-probability trade to trigger. It ain’t for everyone,
and if you have an ego, it’s especially not the right kind of game. But, if
you’re willing to accept the classic reversal-and-continuation patterns, and
take the triggers as they happen in the here and now–what’s the point of battling
‘what is’, for something that may or may not happen today, Monday, or any other
day of the week for that matter. Have a great weekend!!!
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
19.89 | down .31 | cvr 2,6 buy | 7% above | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
29.08 | down 1.41 | cvn 2 buy | 5% above | not at extreme |
Hottest Sectors : Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Oil Services
(
OIH |
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 |
| Hot Topic | ( HOTT | Quote | Chart | News | PowerRating) |
28.18 | Inside day doji pattern on above average volume within weekly basing pattern |
884 | 1,036 |
| Celgene | ( CELG | Quote | Chart | News | PowerRating) |
42.65 | Inside day ‘doji’ on increased above average volume within multiweek channel |
1,742 | 2,384 |
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 |
| Nam Tai | ( NTE | Quote | Chart | News | PowerRating) |
32.57 | Bottom of range consolidation on increased volume, breaking angular supports below the 20 day ema |
998 | 733 |
| Electronic Arts | ( ERTS | Quote | Chart | News | PowerRating) |
44.16 | Bottom of range consolidation on ‘second’ daily contraction after technical b/d |
1,890 | 7,022 |
| Starwood | ( HOT | Quote | Chart | News | PowerRating) |
33.07 | Bottom of range consolidation w/in established downtrend, on increased trade as stock approaches pivot lows |
1,296 | 1,352 |
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 |
| DSP Group | ( DSPG | Quote | Chart | News | PowerRating) |
23.68 | Wide range bullish bar on increased volume off 3pt. pattern reversal, w/ confirming stochastics |
301 | 246 |
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 |
| Xilinx | ( XLNX | Quote | Chart | News | PowerRating) |
36.06 | 7,583 | 8,339 |
| Intuit | ( INTU | Quote | Chart | News | PowerRating) |
4,885 | 2,268 | 4,148 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
43.92 | 11,453 | 9,829 |
| Target | ( TGT | Quote | Chart | News | PowerRating) |
37.75 | 3,759 | 3,766 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler