Monday’s Top Stocks
The markets acted just like one might expect on an abbreviated session after
a holiday feast–looking like it ingested some tryptophan of its own. Meager
fraction gains on lackluster, well-below-average volume was confirmed by a very
tight range, and leaves this ‘cautious bull’ thinking that today’s trade means,
realistically speaking, absolutely nothing within the scope of the market’s
still ‘confirmed rally.’
Today was seriously a turkey. Bottom line, why bother? I know, some arcane 200-year
old rule agreed upon underneath a Buttonwood Tree–and yes, the kids get a kick
out of pulling the levers and pressing the buttons down on the floor of the
NYSE while the media gobbles it right up. Yes, very cute–but also not exactly
the high-probability trading environment that we look for in maintaining our
trading business. No worry though, come Monday, with the turkey out of the way,
it will be back to our regularly scheduled program of bulls, bears, and pigs,
and more likely than not–the right type of environment for our brand of disciplined,
consistent daytrading.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
16.58 | up .67 | cvr 2 sell | 9% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
25.62 | down .01 | cvn 2 sell | 8% below | not at extreme |
Hottest Sectors : Gold/Silver (XAU) and Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors :Â Telecom
(
TTH |
Quote |
Chart |
News |
PowerRating) and Pharmaceuticals
(
PPH |
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 |
| ScanSoft | ( SSFT | Quote | Chart | News | PowerRating) |
6 | High level intraday consolidation on increased, above-average volume within established trading range |
760 | 989 |
| NIC Inc | ( EGOV | Quote | Chart | News | PowerRating) |
7.04 | top of range close on relative ‘strong volume’ within established daily consolidation |
436 | 344 |
| Packateer | ( PKTR | Quote | Chart | News | PowerRating) |
18.91 | Closing near high of day and 1% thru one month high level consolidation |
633 | 271 |
| Stratasys | ( SSYS | Quote | Chart | News | PowerRating) |
45 | Continuation move off hammer, clearing 50-day SMA, to close HOD |
608 | 162 |
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 |
| NA | NA | NA | NA | NA | NA |
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 |
| Sierra Wireless | ( SWIR | Quote | Chart | News | PowerRating) |
18.17 | Inside day with triangle consolidation, on relative strong volume, after technical doji test of supports |
851 | 761 |
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 |
| Foundry | ( FDRY | Quote | Chart | News | PowerRating) |
26.30 | 2,919 | 1,786 |
| Apple | ( AAPL | Quote | Chart | News | PowerRating) |
21.03 | 4,980 | 1,342 |
| Schering Plough | ( SGP | Quote | Chart | News | PowerRating) |
16.07 | 6,809 | 11,857 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Merck | ( MRK | Quote | Chart | News | PowerRating) |
40.62 | 8,959 | 8,903 |
| Mercury Interactive | ( MERQ | Quote | Chart | News | PowerRating) |
46.66 | 3,529 | 1,045 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler