Monday’s Top Stocks
Friday’s ‘really, really’, latest and greatest economic number ‘really, really’
had investors scrambling in early trade. The better-than-expected employment
number
sent
our ETF friends gapping substantially higher. Apparently, ‘the number’ took
a lot of the smart money by surprise, fueling a combination of short covering
and I reckon some fresh money being put to good use. The intraday trading range
kept
a favorable bias into the last hour of trade before succumbing to some relatively
strong selling pressure by the same two groups doing a different type of afternoon
activity. The session will go down as a ‘follow-thru’ day as our index proxies
finished up between .75% to 2.75% on stronger and above-average volume, but
with what has quickly become an overbought condition, the ‘mooove’ is starting
to sound more like a ‘quack’, than anything else.
If you owned Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating), you might consider doing ‘it’ after today’s
52-week high. Otherwise, let’s just keep to the game plan of trying to stay
as best
prepared as possible, as Monday will afford more opportunities for those who
come in ready. Essentially, two days of price surging higher has put our ETF
friends within .50% to 1% of our September highs. That’s the good news. The
bad news is that position traders will most likely have to wait thru a period
of consolidation, if our first ‘follow-thru’ day after many days of above-average
distribution is going to ‘really, really’ set the stage for higher prices.
The best news though, is that come bull, bear, or something in between, we’ve
always got our disciplined, consistent daytrading….’YAHOO!!!’
The Boys of Summer have that song, ‘take me out to the ballpark’, but today’s
action might best be summed up by changing the ‘to’, to something like ‘out
of’…and how. Who knew? Not me, and probably not a whole lotta folks, but
I do know how to best prepare for the next session. The day
might turn out to be a whole lot different than what it looked like the night
before, but by ‘singing the same ol’ song’ of finding quality setups out of
High and Low RS issues, we’ll definitely be whistling that familiar tune of
Dixie each and every day.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
20.49 | down 1.56 | none | 7% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
31.11 | down 2.05 | none | 3% below | not at extreme |
Hottest Sectors : Networking (NWX) and Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors : Gold/Silver (XAU) 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 |
| Standard Microsystems | ( SMSC | Quote | Chart | News | PowerRating) |
28.17 | End of day trigger out of intra consolidation to fresh 52-week highs on strong volume |
142 | 307 |
| Altiris | ( ATRS | Quote | Chart | News | PowerRating) |
28.31 | High volume b/o of daily high-level base, closing in mid-level intraday consolidation |
320 |
639
|
| Foundry Networks | ( FDRY | Quote | Chart | News | PowerRating) |
23.83 | Top of range consolidation near daily chart 4-week consolidation b/o levels |
3,180 | 3,609 |
| Power Integrations | ( POWI | Quote | Chart | News | PowerRating) |
37 | High level consolidation on above-average volume, closing near 4-week b/o levels |
579 | 603 |
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 |
| Anglogold | ( AU | Quote | Chart | News | PowerRating) |
36.30 | Bottom of range consolidation on technical b/d daily supports, w/ volume confirmation |
940 | 1,749 |
| Weight Watchers | ( WTW | Quote | Chart | News | PowerRating) |
40.50 | Bottom of range consolidation on high volume test of daily supports, low RS issue |
625 | 1,425 |
| Gen-Probe | ( GPRO | Quote | Chart | News | PowerRating) |
27.08 | Pullback from lows on heavy volume, within daily trading range, but closing below key technical supports |
334 | 1,446 |
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 |
| Applied Films | ( AFCO | Quote | Chart | News | PowerRating) |
29.39 | Intraday triangle consolidation, on inside doji daily close with strong volume, within technical testing zone |
181 | 628 |
| Biovail | ( BVF | Quote | Chart | News | PowerRating) |
31.11 | Climatic bearish thrust, with session lows 2% thru weekly Gartley levels, 1% closing basis, and 100% AB=CD price projection for potential reversal longs |
1,995 | 15,758 |
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 |
| Yahoo | ( YHOO | Quote | Chart | News | PowerRating) |
39.18 | 6,812 | 12,388 |
| National Semiconductor | ( NSM | Quote | Chart | News | PowerRating) |
35.73 | 4,093 | 4,886 |
| Adobe | ( ADBE | Quote | Chart | News | PowerRating) |
40.95 | 3,224 | 3,317 |
| PMC Sierra | ( PMCS | Quote | Chart | News | PowerRating) |
14.81 | 5,107 | 5,755 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Genetech | ( DNA | Quote | Chart | News | PowerRating) |
79.82 | 2,650 | 2,503 |
| Sohu.com | ( SOHU | Quote | Chart | News | PowerRating) |
33.38 | 4,427 | 4,995 |
| Merck | ( MRK | Quote | Chart | News | PowerRating) |
50.11 | 6,238 | 9,213 |
| Siebel | ( SEBL | Quote | Chart | News | PowerRating) |
11.01 | 10,700 | 51,000 |
Best of luck to everyone. Please use protective stops on all trades.
Chris Tyler